The influencing factors of financial shared service implementation from a dynamic perspective

Purpose The concept of “Financial Shared Service Implementation” financial shared service (FSS) in prior studies is vague and no systematic framework has been developed to understand the influencing factors of different stages of FSS implementation. The objective of this study is to divide the stage of the entire process of FSS implementation from a dynamic perspective, examine the factors shape the different stages and explore the strength of the influencing factors of FSS implementation varies across different stages. Design/methodology/approach Drawing on the innovation diffusion theory and the technology-organization-environment (TOE) framework, this study develops a stage-based model of the influencing factors of FSS implementation from a dynamic perspective. A questionnaire data of 357 Chinese enterprises was collected and structural equation modeling was used to test the research model. Findings The empirical results show that the three stages of FSS implementation (formation, running-in and standardization) is a series of sequential processes and technological, organizational and environmental factors, such as relative advantage, compatibility, centralization, formalization, competitive pressure and bandwagon pressure, shape these stages of FSS implementation. Also, the strength of the antecedents of FSS implementation demonstrates statistical differences across different stages. Originality/value The findings contribute to the Information Technology (IT) innovation theory by offering a new perspective for future shared service study, and will assist enterprises in making strategic and plans for FSS implementation. Furthermore, the study expands the application scope of the TOE framework to the FSS implementation field.