Value creation through HR shared services: towards a conceptual framework
Abstract
Purpose
The purpose of this paper is to derive a measure for the performance of human resource shared service providers (HR SSPs) and then to develop a theoretical framework that conceptualises their performance.
Design/methodology/approach
This conceptual paper starts from the HR shared services argument and integrates this with the knowledge‐based view of the firm and the concept of intellectual capital.
Findings
The authors recommend measuring HR SSP performance as HR value, referring to the ratio between use value and exchange value, that together reflect both transactional and transformational HR value. They argue that transactional HR value directly flows from the organisational capital in HR SSPs, whereas human and social capitals enable them to leverage their organisational capital for HR value creation. They argue that the human capital of HR SSPs has a direct effect on transformational HR value creation, while their social and organisational capitals positively moderate this relationship.
Originality/value
The suggested measure paves the way for operationalising and measuring the performance of HR shared services providers. The paper offers testable propositions for the relationships between intellectual capital and the performance of HR shared service providers. These contributions could assist future research to move beyond the descriptive nature that characterises the existing literature.
Keywords
Citation
Meijerink, J., Bondarouk, T. and Kees Looise, J. (2013), "Value creation through HR shared services: towards a conceptual framework", Personnel Review, Vol. 42 No. 1, pp. 83-104. https://doi.org/10.1108/00483481311285246
Publisher
:Emerald Group Publishing Limited
Copyright © 2013, Emerald Group Publishing Limited