Chapter Four: Conceptual Framework

This Chapter lays out the Conceptual Framework for the research based on the previous discussions in Chapters Two and Three. This Chapter spells out the gap in knowledge, the aim and objectives to fill this gap and emphasises the role of SD.

In addition, the Chapter demonstrates what the purpose of the model is, who it is intended for, who will use it, what are its outcomes and how it would benefit the various stakeholders. This Chapter is organised as follows:

4.1 Theoretical Underpinnings of this research. 4.2 Conceptual Framework of this research.

4.3 Definition of Shared Services, Service Structure and Organisational Form. 4.4 Gap in Knowledge.

4.5 Research Aim(s) / Objectives; System Boundary (time horizon), Research Question and emphasis of the Role of SD.

4.6 Purpose of the Model, who it is intended for, who will use it, outcomes and how it will benefit stakeholders.

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In developing the theoretical framework, three main themes are important. These are: a. Organisational Change drivers / philosophy related to systems theory with specific

reference to organisations as open systems. b. Organisational Change Theory:

 with specific reference to the drivers or reasons of organisational change and their applicability to Shared Service Centres (philosophies of organisational change) and

 with specific reference to the Critical Success Factors of organisational change and their applicability to Shared Service Centres.

c. To a lesser extent, Stakeholder theory with specific emphasis on Stakeholder analysis.

The Conceptual Framework encompasses the ideas explored and the way that the research is organised. Mertens (2015, p.115) suggests that ‘a researcher’s original conceptual framework influences the planning and conducting of the literature review’.

In this research, the conceptual framework is used as a basis to plan and develop the literature review in Chapter Two and vice versa. This then helps to provide a basis for the design and development of the research methodology in Chapter Three, where I review the research methods; advance and describe the methodology of SD and its justification for this research; and finally, discuss and describe the choice of research methods used in this research.

The Conceptual Framework for this research has two strands. The first strand shown in Figure 19 relates to the Design / Build and Implementation of the Shared Service Centre. The argument espoused in this research is that there are cause-effect relationships between

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/ among the various factors influencing the design / build and Implementation of the Shared Service Centre. The up-down arrows and the left-right arrows in Figure 19 depict the cause- effect relationships between / among the various factors. The Conceptual Framework in this strand has been designed based upon open systems theory. In Chapter Two, specifically sections 2.3 and 2.4, I discuss systems theory and how organisations are systems. Furthermore, it has been argued out that organisations consists of people working together to achieve a common goal (Smith and Graetz, 2011; Burke, 2014; Encyclopedia of Small Business, 2017). Organisations are formed to achieve either financial, social or other goals. To achieve these goals, they create structures and processes in order to carry out their activities. In doing this, they are influenced by both their internal and external environment, and how they respond to these influences, determines whether they survive, succeed or not.

In Chapter Two, I describe and make the case for organisations as systems. I also address the systems theory and thinking perspective, arguing the case for SSCs as organisations and systems. The objectives of this research are to reflect the cause-effect relationship between / among the SSC transition factors. Open systems theory reflects the internal and external influences that affect the organisation and the interdependencies of these influences. In effect, the issues are systemic. Touching one part will affect the other. In addition, I argue for the use of SD as a decision support system to address this. Thus, the hypotheses shown in Figure19 directs the focus of the Shared Service establishment in this research. These are further discussed later in this chapter.

Another important theoretical foundation is Organisational Change theory as specifically related to the philosophies or drivers of organisational change and its applicability to SSCs.

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The aim was to understand the drivers or motives for organisational change and how applicable they are to the motives for SSCs? These are addressed in Chapter Two and this relates to Hypothesis 1a in the Conceptual Framework.

Furthermore, in building the first strand of the Conceptual Framework, another theoretical area was Organisational Change Theory as specifically related to organisational critical success factors and its applicability to SSCs. The aim was to understand the critical success factors of organisational change and their similarities or relevance to the critical success factors of SSCs. These are again addressed in Chapter Two and relates to Hypothesis 1b, shown in Figure 19.

Chapter Three then provides the basis for the choice of research methods, where I use a mixed methods approach (exploratory sequential) by using a qualitative and quantitative approach (Case Study and System Dynamics) based upon the Conceptual Framework and the Literature Review. Furthermore, the Conceptual Framework and the Literature Review drives the choice of Research Paradigm, Research Methodology, Research Methods and Techniques (See also Table 12).

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Figure 19 Conceptual Framework of Shared Service Centre (SSC) Design / Build and Implementation (Strand One)

Critical Success Factors Vision Strategy Effective Communication

Effective Change Management Senior Management Buy-in Strong Project Management Skills

Organisation and HR (Human Resources) Site Location

Hypotheses Hypothesis 1

There is a cause effect relationship between/amongst the various (key/critical success) factors influencing the design/build and implementation of Shared Service Centre.

Hypothesis 1a

SSCs are organisations and that the reasons for success/failures of organisational change are applicable to SSCs.

Hypothesis 1b

There are some key (critical success factors) associated with SSCs that influence the design/build and implementation of SSCs.

Shared Service

Design/Build and