Strategy Alignment and Performance Evaluation for Shared Service Centers: A Longitudinal Study on the Role of Balanced Scorecard

46 Pages Posted: 19 Aug 2013

See all articles by C. Chang

C. Chang

San Diego State University - Accountancy

Tsuilin Kuo

Fu-Jen Catholic University

Anne Wu

National Chengchi University (Taipei)

Date Written: August 19, 2013

Abstract

Although the SSC concept has gained increasing attention in practice, researchers have not examined the associated issues sufficiently. Through integration in business processes, shared service centers (SSCs) aim to reduce costs and provide better services to internal customers for efficient and effective operations. This longitudinal field study explores how an organization could make existing SSCs more successful. Specifically, we investigate two issues: first, whether using the balanced scorecard (BSC) can assist the employees of SSCs to better understand and achieve the strategies of other operating units as well as those of the headquarters, and second, whether using BSC can better measure the performance of SSCs and reveal the value of SSCs. We illustrate the processes and impacts related to the implementation of BSC on SSCs in a large car dealership in Taiwan. The results show that most employees in SSCs strongly sense and understand organizational strategies after implementing BSC; however, SSCs’ employees do not believe that BSC provides effective performance measures on SSCs. We also find that the managers and employees of SSCs focus more on revenue, cost, and serving internal customers after the implementation of BSC.

Keywords: Shared service centers, Balanced scorecard, Strategy alignment, Performance evaluation, Longitudinal field study

Suggested Citation

Chang, C. and Kuo, Tsuilin and Wu, Anne, Strategy Alignment and Performance Evaluation for Shared Service Centers: A Longitudinal Study on the Role of Balanced Scorecard (August 19, 2013). AAA 2014 Management Accounting Section (MAS) Meeting Paper. Available at SSRN: https://ssrn.com/abstract=2312286 or http://dx.doi.org/10.2139/ssrn.2312286

C. Chang

San Diego State University - Accountancy ( email )

United States
(619) 594-8383 (Phone)
(619) 594-3675 (Fax)

Tsuilin Kuo (Contact Author)

Fu-Jen Catholic University ( email )

No. 510, Zhongzheng Rd., Xinzhuang Dist.
New Taipei City, 24205
Taiwan
886-2-2905-3999 (Phone)
886-2-2904-7925 (Fax)

Anne Wu

National Chengchi University (Taipei) ( email )

No. 64, Chih-Nan Road
Section 2
Wenshan, Taipei 11623
Taiwan

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