Research On The Key Implementation Factors Of Corporate Financial Shared Service

The global economic integration and the large-scale development of business had been an irreversible evolution for the enterprises competing with the others in global market.The competition among multinational enterprises was being increasingly fierce,more and more enterprises merging and internal integration arose.To enhance their own competitiveness,multinational enterprises had been looking for more advanced and effective management ideas and technical means.Financial management,as one of the most important part in corporate operation,was also facing the challenge of global management.Financial Sharing Service(FSS)occurred and had been popular as a new accounting and reporting business management mode.At present,roughly 90%of Fortune 500 enterprises had been,or were,building own financial shared service centers.Via building up the Financial Sharing Service Center,a multinational company could take the advantage of the cost reduction under the scale effect and the improvement of financial management efficiency,to achieve the enhancement of a company's core competitiveness.China had been a one of the major players in world economy.More and more Chinese companies,especially the leading private enterprises in China including Alibaba,Tencent,Huawei,Geely and so on,started global operation and deeply participated in worldwide competition.With the booming global business and more advanced information technology,Financial Sharing Service developed rapidly in China.However,there were very few researches about Chinese multinational companies implementing FSS to gain competitive advantage.It is of great empirical value and significance that scholars and researchers use empirical methods to analyze the key factor framework of implementing a Financial Sharing Service Center.This paper focused on giving a framework by summarizing previous research results on the key factors of conducting a Financial Sharing Service Center,to find out the mechanism and model of action that Effectiveness of Financial Sharing,as the independent variable in the framework,affected by the 6 key factors---Strategic Planning,Organization Structure,Process Management,Performance Management,Information Technology,and Policy Instruction.Then the framework was conducted by an empirical study based on the case of Geely(Zhejiang Geely Holding Group),a typical multinational company in China,so as to help companies analyze relevant construction and final results,and to provide a new case to replenish the pool of empirical research works on FSS.This paper firstly discussed the development stages and theoretical achievements of FSS world widely,and particularly in China.Then,in the next part,to figure out the framework about key factor of Financial Sharing Service Center implementation,related theories and empirical researches were summarized.And immediately,a series of questionnaire survey and data analysis were conducted to optimize and adjust the framework of the key factors.In this framework,a regression equation contains 6 key factors,as the independent variables,and the effectiveness of financial sharing service,as the dependent variables.Lastly,with the data analysis of Geely's implementation of Financial Sharing Service Center in the past and current situation,suggestions and strategies for the development of the company had arrived.