PurposeA shared service (SS) arrangement involves an intra‐firm interrelationship, since the SS centre (SSC), operated as an independent business unit, provides services to clients who are other independent business units in the same company group. The purpose of this study is to provide an understanding of risks and controls used in mitigating SS risks.Design/methodology/approachThis study adopts a qualitative approach using a case study of a SSC in a bank group in Malaysia. The risks and control framework developed by Das and Teng was used to analyse the appropriate control mechanisms for mitigating internal outsourcing risks, namely relational risk and performance risk.FindingsThe main relational risk identified is the possibility of opportunistic behaviour. However, this risk could be mitigated through social control especially when both parties share norms and values. Performance risks in SSC are mainly related to unsatisfactory services in terms of incomplete information, system errors and human mistakes. These risks could be mitigated using either behaviour control or output control. Behaviour control can be exercised through performance reporting, while output control can be achieved through key performance indicators (KPIs) and service level agreements (SLA).Research limitations/implicationsThis study is limited to a single case study of a SSC with a certain type of arrangement and discusses business process outsourcing (BPO) in general. Future research may examine cases with other SS arrangements, detailed examination of each BPO and incorporate multi‐perspective views from both SSC and their clients. Issues concerning changes in control in the evolving situation of SSC and bargaining power and trust in mitigating SSC risks are also worth exploring.Practical implicationsThe study's findings enable practitioners to draw insights to develop effective control strategies to mitigate risks in intra‐organizational relationships such as SSC.Originality/valueThe paper adds to our knowledge of control mechanisms for mitigating risks in the SS relationship, which is a relatively new concept in the literature.

Purpose -Finance and accounting (FA) offshore outsourcing is a growing trend involving a relocation of business processes to Asia but only few studies focus on understanding the issues that underlie the relocation of FA services. This paper aims to provide understanding of transaction costs economics (TCE) issues in FA offshore outsourcing using a case study of the Malaysia outsourcing industry which is growing and experiencing significant change. Design/methodology/approach -This study uses a qualitative case study approach. Interviews cover several foreign firms, which are based in Malaysia and involved in FA offshore outsourcing services worldwide. Interviews also include related regulatory bodies in Malaysia. Findings -Using TCE and management control theoretical framework, findings indicate issues and challenges faced by the firms and the need for contract management skills to mitigate the issues. Research limitations/implications -This study is limited to a broad discussion of FA offshore outsourcing, TCE and contract management but it could be a basis for future studies on specific issues of managing attrition in FA offshore outsourcing. This study contributes to prior works in TCE and FA offshore outsourcing by establishing controls to minimise costs at contact, contract and control stage. Specifically, this study emphasises contract management such as negotiating contract and using long-term contractual arrangement.Practical implications -This study not only identifies TCE issues in offshore FA outsourcing, but also provides suggestions for minimising transaction costs. For example, firms should consider the type of transaction costs involved and plan for appropriate contract management to mitigate the costs. Originality/value -There is no study yet that discusses in-depth the issues of TCE in FA offshore outsourcing especially in Malaysia and the need for contract management in mitigating such issues.

PurposeThe purpose of this paper is to provide understanding on the process of accounting outsourcing turnback from the client's perspective. The aim is to understand the issues faced by clients during turnback process, and provide recommendations to resolve them.Design/methodology/approachThis study adopts a qualitative interpretive case study approach. Data were collected based on documentation, archival records, direct observation, and interviews to allow for triangulation.FindingsThis study provides empirical evidence of accounting outsourcing turnback process. Some of the issues faced by clients include lack of management support, limited financial and human resources, and uncooperative vendors.Research limitations/implicationsTheoretically, this study extends Elliot's model by providing empirical evidence on process, identifying issues, and discussing recommendations on accounting outsourcing turnback. The limitation is the use of a single case study of a small company in Malaysia.Practical implicationsPractically, this study enhances understanding on accounting outsourcing turnback process and issues. The recommendations provided can serve as guidelines for clients who are considering outsourcing turnback as a strategic move.Originality/valueThere has been limited research in the area of accounting outsourcing focusing on turnback process. This study contributes to the field of accounting outsourcing by describing an accounting turnback process and issues faced by clients. The study recommends communication, financial support, top management support, back‐up exit plan, and vendor management throughout the turnback period. Finally, gradual reduction of accounting outsourced works rather than immediate termination is favored to reduce the risk in accounting outsourcing turnback.

No abstract

For decades, one of the main concerns of both practitioners and academics has been the business value of dynamic accounting information systems (DAIS). A number of studies have demonstrated the positive effects of information systems capability on overall organizational performance, but our understanding of the business processes capabilities through which such gains are achieved remains limited due to a lack of focus on the turbulent business environment. As a result, the research on information systems continues to debate such a connection. The role of business process capabilities in modulating the link between dynamic AIS capability and organizational resilience was investigated in this study. Our results show that, while firm-wide dynamic AIS capability has characteristics of flexible AIS, complement BI system, and AIS-related human resource competency, the impact on organizational resilience is positively affected by mediation of business process capabilities based on 144 matched questionnaires selected from large companies from various sectors listed on the Bursa Malaysia. Our results also suggest that dynamic AIS capability has an impact on organizational resilience. According to the Resource-Based Theory (RBT) and dynamic capabilities view (DCV) viewpoints, there is a link between dynamic AIS and business process capacity to improve organizational resilience. The findings strongly support the claim that an organization’s dynamic AIS capabilities—both flexible AIS, complementary business intelligence (BI) system, and AIS-related human resource competency—can help an organization improve its resilience. This research’s practical and theoretical ramifications as well as its limitations are examined.