A Conceptual Framework of Sustainability Balanced Scorecard to Enhance the Performance of Shared Service Centre
Article Sidebar
Main Article Content
Abstract
Research aim: The paper aims to propose a conceptual framework of a sustainability balanced scorecard that communicates the requisite of SSCs along with aggregation of the three dimensions of Triple Bottom Line (People, Planet, and Prosperity) and four perspectives of the Balanced Scorecard (Financial, Customer, Internal Business, and Innovation and Learning) to the assess appropriate performance indicators and sustainability approach on the management dashboard at SSC.
Design/ Methodology/ Approach: This conceptual study is based on a review of prior literature on sustainable performance management in SSCs and in-depth interviews with SSC executives to assess the performance indicators for enhancing corporate sustainability.
Research finding: The proposed research framework is a combination of several perspectives of BSC and facets of TBL such as customer, internal business innovation and learning, economy, environment, and social.
Theoretical contribution/ Originality: The paper proposed a conceptual framework of sustainable performance management at the organisational level, especially in the shared service industry that can also be applied for future academic research.
Practitioner/ Policy implication: The proposed framework may generate new insights for the policymakers and practitioners to guide the practices to strategically refine for effective management dashboards in the shared service industry.
Keywords: Balanced Scorecard (BSC), Performance Management, Shared Service Centre (SSC), Sustainability, Sustainability Balanced Scorecard (SBSC)
Type of article: Conceptual paper
JEL Classification: M14, M21
Downloads
Article Details
License
The Asian Journal of Accounting Perspectives (AJAP) articles are published under a licence equivalent to the Creative Commons Attribution-NonCommercial-NoDerivs License (CC BY-NC-ND). The licence allows users to copy, distribute, and transmit an article as long as the author is attributed. The article is not used for commercial purposes. The work is not modified or adapted in any way.
Copyright
Authors are required to sign the Exclusive License to Publish agreement upon publication in the AJAP. The agreement grants the Publisher (Faculty of Business and Accountancy, Universiti Malaya) to publish and disseminate the articles.
Open Access
Articles published in the AJAP are digital, online, free of charge, and free of most copyright and licensing restrictions.
Article Processing Charge
Articles publish in AJAP is free submission, production and publication charges. However, all accepted articles are required for language editing. The AJAP officially appointed and outsourced proofreader will conduct this process, and the authors will cover the cost. AJAP does not profit from this process and transaction.
References
Abdelrazek, A. F. (2019). Sustainability Balanced Scorecard: A Comprehensive tool to measure Sustainability Performance. International Journal of Social Science and Economic Research, 4(2), 948-962.
Abubakar, A. H., Mustapha, U. A., Ayoup, H., & Anuforo, P. U. (2019). The Implementation of Balance Scorecard and Its Impact on Performance: Case of Universiti Utara Malaysia. International Journal of Accounting & Finance Review, 4(1), 1-16. https://doi.org/10.46281/ijafr.v4i1.226
Agha, S., Alrubaiee, L., & Jamhour, M. (2012). Effect of Core Competence on Competitive Advantage and Organizational Performance. International Journal of Business and Management, 7(1), 192-204. https://doi.org/10.5539/ijbm.v7n1p192
Amiruddin, R., Aman, A., Sofiah, Auzair, Hamzah, N., & Maelah, R. (2013). Mitigating risks in a shared service relationship: the case of a Malaysian bank. Qualitative Research in Accounting Management, 10(1), 78-93. https://doi.org/10.1108/11766091311316202
Authority, M. I. D. (2017). Special Report: Importance of services sector grows. Retrieved from https://www.mida.gov.my/home/4661/news/special-report-importance-of-services-sector-grows/
Barbosa, M., Castañeda-Ayarza, J., & Ferreira, D. (2020). Sustainable management, balanced scorecard and small business: a systematic review and state of the art. Independent Journal of Management & Production, 11(1), 156-179. https://doi.org/10.14807/ijmp.v11i1.1002
Barjaktarović, L., Stefanović, N., & Đukanović, M. (2017). Shared service centre–case study Henkel GmbH Paper presented at the [Paper presentation]. FINIZ 2017-Challenges in modern corporate governance, Singidunum University in Belgrade, Serbia. http://portal.finiz.singidunum.ac.rs/paper/42514
Bell, S., & Morse, S. (2012). Sustainability indicators: measuring the immeasurable? (2nd ed.): Earthscan.
Bondarouk, T. (2014). Shared services: New opportunities for research and practice. In Shared Services as a New Organizational Form (Vol. 13, pp. ix-xiii). Bingley, U.K: Emerald.
Butler, J., Henderson, S., & Raiborn, C. (2011). Sustainability and the balanced scorecard: Integrating 'green' measures into business reporting. Management Accounting Quarterly, 12(2), 1-10. https://www.imanet.org/-/media/0d2d9a8868844f58979450f2b02df2b1.ashx
Cania, L. (2014). The impact of strategic human resource management on organizational performance. Economia. Seria Management, 17(2), 373-383.
Carpi, R., Douglas, J., & Gascon, F. (2017). Performance management: Why keeping score is so important, and so hard. Retrieved from https://www.mckinsey.com/business-functions/operations/our-insights/performance-management-why-keeping-score-is-so-important-and-so-hard#
Chang, C. J., Kuo, T., & Wu, A. (2013). Strategy Alignment and Performance Evaluation for Shared Service Centers: A Longitudinal Study on the Role of Balanced Scorecard. Paper presented at the AAA 2014 Management Accounting Section (MAS) Meeting Paper.
Daher, G. P. (2018). Shared service centre (SSC)–analysis of factors that influence standardisation. A business model for multinational companies. International Journal of Scientific Research and Innovative Technology, 5(8), 105-126.
Deloitte. (2019). Global Shared Services Survey Report. Retrieved from https://www2.deloitte.com/content/dam/Deloitte/us/Documents/process-and-operations/2019-global-shared-services-survey-results.pdf
Deloitte. (2020). Why ESG should feature on the shared Services agenda. Retrieved from https://www.deloitte.co.uk/sharedservicesconference/assets/img/presentations/deloitte-uk-ssc2020-the-esg-imperative.pdf
Dias-Sardinha, I., Reijnders, L., & Antunes, P. (2002). From environmental performance evaluation to eco-efficiency and sustainability balanced scorecards. Environmental Quality Management, 12(2), 51-64. https://doi.org/10.1002/tqem.10063
Domingues, L., Pinto, A. S., & Guterres, C. J. (2018). The relevance of intellectual capital in shared service centres: An exploratory research on the contribution of three models from different areas of knowledge. International Journal of Technology and Human Interaction, 14(2), 1-16. https://doi.org/10.4018/ijthi.2018040101
Drake, P. P., & Fabozzi, F. J. (2012). Analysis of financial statements (3rd ed. Vol. 204). Hoboken, N.J: John Wiley & Sons.
Dudic, Z., Dudic, B., Gregus, M., Novackova, D., & Djakovic, I. s. (2020). The Innovativeness and Usage of the Balanced Scorecard Model in SMEs. Sustainability, 12(8), 1-22. https://doi.org/10.3390/su12083221
Đukanović, M. (2017). Shared service centre–case study Henkel GmbH. FINIZ 2017-Challenges in modern corporate governance, 18-24. https://doi.org/10.15308/finiz-2017-18-24
Dunphy, D. C., Benveniste, J., & Griffiths, A. (2000). Sustainability: The corporate challenge of the 21st century. Sydney: Allen & Unwin.
Dutta, S. (2012). Triple bottom line reporting: An Indian perspective. Interdisciplinary Journal of Contemporary Research in Business, 3(12), 652-659. https://ijcrb.webs.com/
Elkington, J. (1998). Cannibals with forks: The triple bottom line of 21st century business. Gabriola Island, BC,: New Society.
Fadhil, A., Miskon, S., Iahad, N., Rahman, A. A., Abdullah, N. S., Sim, A. T. H., & Ahmad, N. (2016). Drivers influencing shared services adoption. Journal of Theoretical and Applied Information Technology, 90(1), 93-100. http://www.jatit.org/volumes/ninety1.php
Fatima, T., & Elbanna, S. (2020). Balanced scorecard in the hospitality and tourism industry: Past, present and future. International Journal of Hospitality Management, 91(4), 01-18. https://doi.org/10.1016/j.ijhm.2020.102656
Figge, F., Hahn, T., Schaltegger, S., & Wagner, M. (2001). The Sustainability Balanced Scorecard–a tool for value-oriented sustainability management in strategy-focused organisations. Paper presented at the [Conference session]. The 2001 Eco-Management and Auditing Conference 2001, Nijmegen, Netherlands.
Figge, F., Hahn, T., Schaltegger, S., & Wagner, M. (2002). The sustainability balanced scorecard - linking sustainability management to business strategy. Business Strategy and the Environment, 11(5), 269-284. https://doi.org/10.1002/bse.339
Godse, M. (2012). Exploiting the values of shared services. Paper presented at the [Conference presentation]. Third International Conference on Services in Emerging Markets, Mysore, India. https://www.computer.org/csdl/proceedings-article/icsem/2012/4937a162/12OmNAOKnXg
Hammer, M., & Champy, J. (1993). Reengineering the Corporation. New York, USA: Harper Collins Inc.
Hansen, E. G., & Schaltegger, S. (2012). Pursuing sustainability with the balanced scorecard: Between shareholder value and multiple goal optimisation [Working paper]. [Press release]. Retrieved from https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2169335
Hansen, E. G., & Schaltegger, S. (2016). The Sustainability Balanced Scorecard: A Systematic Review of Architectures. Journal of Business Ethics, 133(2), 193-221. https://doi.org/10.1007/s10551-014-2340-3
Henri, J. F. (2004). Performance measurement and organizational effectiveness: bridging the gap. Managerial Finance, 30(6), 93-123. https://doi.org/10.1108/03074350410769137
Hristov, I., & Chirico, A. (2019). The role of sustainability key performance indicators (KPIs) in implementing sustainable strategies. Sustainability, 11(20), 5742. https://doi.org/10.3390/su11205742
Hubbard, G. (2009). Measuring Organizational Performance: Beyond the Triple Bottom Line. Business Strategy and the Environment, 18(3), 177-191. https://doi.org/10.1002/bse.564
Kang, J.-S., Chiang, C.-F., Huangthanapan, K., & Downing, S. (2015). Corporate social responsibility and sustainability balanced scorecard: The case study of family-owned hotels. International Journal of Hospitality Management, 48, 124-134. https://doi.org/10.1016/j.ijhm.2015.05.001
Kaplan, R. S., & Norton, D. P. (1992). The balanced scorecard: measures that drive performance. Harvard business review, 83(7), 172.
Kearney, A. T. (2016). Global Services Location Index. Retrieved from http://gbs-iskandar.my/wp-content/uploads/2017/07/2016-AT-Kearney-Global-Services-Location-Index.pdf
Kim, M. J. (2020). A Study on the Impact of Management's Strategic Leadership and Management Strategy on Organizational Performance: Focusing on Small and Medium Venture Companies. International journal of advanced smart convergence, 9(1), 121-131. https://doi.org/10.7236/IJASC.2020.9.1.121
Kleinfeld, K., Kronau, D., & Holtje, J. (2005). Shared Services - Theory and Case Study: Siemens USA. In Perspektiven des Supply Management (pp. 329-346). Berlin, Heidelberg: Springer.
Lakshmi, M. N., Sricharan, Y. S., & Vijayakumar, T. (2020). Leveraging Technology for Shared Services Transformation. In Rajagopal & R. Behl (Eds.), Innovation, Technology, and Market Ecosystems (pp. 51-64). London: Palgrave Macmillan.
Laszlo, C. (2003). The sustainable company: How to create lasting value through social and environmental performance. Washington, DC: Island Press.
Lu, M.-T., Hsu, C.-C., Liou, J. J. H., & Lo, H.-W. (2018). A hybrid MCDM and sustainability-balanced scorecard model to establish sustainable performance evaluation for international airports. Journal of Air Transport Management, 71, 9-19. https://doi.org/10.1016/j.jairtraman.2018.05.008
Marciniak, R. (2012). Performance measurement in shared service centers Paper presented at the [Conference presentation]. 8th International Conference of PhD Students, University of Miskolc, Hungary.
Marciniak, R. (2013). Measuring Service Satisfaction in Shared Service Organizations. Procedia-Social and Behavioral Sciences, 81, 217-223. https://doi.org/10.1016/j.sbspro.2013.06.416
Marciniak, R. (2016). Maturity Models of Shared Services in Theory and Practice Paper presented at the [Conference presentation]. 11th International Conference on Management, Enterprise and Benchmarking (MEB 2016), Óbuda University, Budapest. https://ideas.repec.org/h/pkk/meb016/191-204.html
Marciniak, R. (2018). Reals solutions for Hungarian shared service companies’ HR problems. Paper presented at the 15th International Scientific Conference Human potenial development.
Martin-Rojas, R., Garcia-Morales, V. J., & Gonzalez-Alvarez, N. (2019). Technological antecedents of entrepreneurship and its consequences for organizational performance. Technological Forecasting and Social Change, 147, 22-35. https://doi.org/10.1016/j.techfore.2019.06.018
Mashovic, A. (2018). Key financial and nonfinancial measures for performance evaluation of foreign subsidiaries. Journal оf Contemporary Economic аnd Business Issues, 5(2), 63-74. http://hdl.handle.net/10419/193492
MDEC. (2019). How Malaysia helps to future proof your business service operations. Retrieved from https://mdec.my/blog/?p=233#:~:text=GBS%20is%20an%20abbreviation%20for,of%20choice%20for%20digital%20services.
Mina, Q., & Nian, L. (2019). Research on the performance evaluation of the financial shared service center based on the sustainable balanced scorecard Paper presented at the [Conference presentation]. International Conference on Financial Management, Education and Social Science (FMESS 2019), Huhhot, China. https://www.clausiuspress.com/conferences/LNEMSS/FMESS%202019/19FMESS053.pdf
MREM, B. (2019). Global Business Services (GBS) industry will be adversely impacted by curtailing highly skilled expatriates into the country [Press release]. Retrieved from [Press release]. http://mrem.bernama.com/viewsm.php?idm=34081
Nasir, I., Abbott, P., & Fitzgerald, G. (2011). Shared Services Centres: A Case Study on a Dispersed Services Oriented Organization. Paper presented at the New Studies in Global IT and Business Service Outsourcing - 5th Global Scourcing Workshop 2011.
Neely, A. (2002). Business Performance Measurement: Theory and Practice (A. Neely Ed.). Cambridge: Cambridge University Press.
Nga, T. T., & Trang, T. T. (2020). Sustainability and Balanced scorecard: The case of small and medium enterprise in Vietnam. Journal of Education and Social Sciences, 14(1), 19-28. https://www.jesoc.com/wp-content/uploads/2020/03/JESOC-14_210.pdf
Pintea, M.-O., & Achim, M.-V. (2010). Performance - An Evolving Concept. Economic Sciences Series, 2(38), 01-12.
Radu, M. (2012). Empirical Study on the Indicators of Sustainable Performance – the Sustainability Balanced Scorecard, Effect of Strategic Organizational Change. Amfiteatru Economic Journal, 14(32), 451-469.
Rafiq, M., Zhang, X., Yuan, J., Naz, S., & Maqbool, S. (2020). Impact of a Balanced Scorecard as a Strategic Management System tool to Improve Sustainable Development: Measuring the Mediation of Organizational Performance through PLS-Smart. Sustainability, 12(4), 1-19. https://doi.org/10.3390/su12041365
Rehman, S. U., Mohamed, R., & Ayoup, H. (2019). The mediating role of organizational capabilities between organizational performance and its determinants. Journal of Global Entrepreneurship Research, 9(30). https://doi.org/10.1186/s40497-019-0155-5
Rostam, F. A. (2019). Organizational Performance Management. Paper presented at the Conference: Social Sciences studies.
Sawalha, S. (2013). Investigation of heat recovery in CO2 trans-critical solution for supermarket refrigeration. International Journal of Refrigeration, 36(1), 145-156. https://doi.org/10.1016/j.ijrefrig.2012.10.020
Schulman, D. S., Harmer, M. J., Dunleavy, J. R., & Lusk, J. S. (1999). Shared Services: Adding Value to the Business Units. New york: Wiley.
Schulz, V., Hochstein, A., Ubernickel, F., & Brenner, W. (2009). Definition and classification of IT-shared-service-center. Paper presented at the Fifteenth Americas Conference on Information Systems, San Francisco, California. http://www.proceedings.com/06499.html
Schulz, V., Janssen, M., & Brenner, W. (2010). Characteristics of shared service centers. Transforming Government: People, Process and Policy, 4(3), 210-219. https://doi.org/10.1108/17506161011065190
Shahar, S. M., Mohd Satar, N., & Abu Bakar, K. A. (2019). The Challenges in Managing Information Technology Shared Services Operations. International Journal of Recent Technology and Engineering (IJRTE), 8(1C2), 322-328. https://www.ijrte.org/wp-content/uploads/papers/v8i1C2/A10520581C219.pdf
Starik, M., & Kanashiro, P. (2013). Toward a Theory of Sustainability Management. Organization & Environment, 26(1), 7-30. https://doi.org/10.1177/1086026612474958
Stead, J. G., & Stead, W. E. (2008). Sustainable strategic management: an evolutionary perspective. International Journal of Sustainable Strategic Management, 1(1), 62-81. https://doi.org/10.1504/ijssm.2008.018127
Sukkar, A. E. (2017). Sustainability : Its factors and its performance evaluation. Journal of Commerce & Educational Thoughts, 1, 14-30. https://doi.org/10.26476/jcet.2017.01.14-30
Swagerman, D., & Steenis, J. V. (1998). Shared services in accounting and finance Paper presented at the [Conference presentation]. VoNet-Workshop: Organizational Virtualness: Proceedings of the VoNet - Workshop, Bern, Switzerland. https://research.utwente.nl/en/publications/shared-services-in-accounting-and-finance
Tech Monitor. (2017). Global business services of Malaysia. Retrieved from http://techmonitor.net/tm/images/e/e7/17oct_dec_start-up_venture.pdf
Tsalis, T. A., Nikolaou, I. E., Grigoroudis, E., & Tsagarakis, K. P. (2013). A framework development to evaluate the needs of SMEs in order to adopt a sustainability-balanced scorecard. Journal of Integrative Environmental Sciences, 10(3-4), 179-197. https://doi.org/10.1080/1943815X.2013.858751
Tuori, M. A., Rois, R. S. R., Martowidjojo, Y. A. N., & Pasang, H. (2021). Formulating a sustainability balanced scorecard (SBSC) for a leading integrated palm oil based consumer products public company in Indonesia. Journal of Management Information and Decision Sciences, 24(03), 01-15.
Ulbrich, F. (2015). Shared services (Vol. 7). Chichester: Wiley Encyclopedia of Management.
Werastuti, D. N. S. (2020). Sustainability Balanced Scorecard and Management Communication in Evaluating A Company’s Performance. Jurnal Ilmiah Akuntansi dan Bisnis, 16(1), 45-59. https://doi.org/10.24843/JIAB.2021.v16.i01.p03
Wu, S.-I., & Hung, J.-M. (2008). A performance evaluation model of CRM on non-profit organisations. Total Quality Management & Business Excellence, 19(4), 321-342. https://doi.org/10.1080/14783360701591978
Yao, Q., Hu, A., Huang, T., & Hu, J. (2012). The Research of Implementing Enterprise Financial Shared Service Center Information System Paper presented at the [Conference session]. 2012 International Conference on Computing, Measurement, Control and Sensor Network, Taiyuan, China.
Yee, L. C. (2019). Finance Shared Services Organizations in Malaysia: A Knowledge Management View. Taylor’s Business Reviews, 8(1), 47-55. http://university2.taylors.edu.my/tbr/uploaded/TBR%208(1)%20Paper%203[3][2].pdf
Zehir, C., Yıldız, H., Köle, M., & Başar, D. (2016). Superior Organizational Performance through SHRM Implications, Mediating Effect of Management Capability: An Implementation on Islamic Banking. Procedia - Social and Behavioral Sciences, 235, 807-816. https://doi.org/10.1016/j.sbspro.2016.11.089