Human Resource Shared Services (HRSS) are increasingly established to reap the benefits of both centralization and decentralization. Such benefits are to be expected, as HRSS centrally bundle intellectual capital and offer HR services that are adapted to the needs of clients and end-users. As a result, HRSS are believed to create value for end-users: employees, managers and HR professionals. Yet we still understand little about how HRSS create value. Therefore, we aim to develop a conceptual model that explains how HRSS create value for end-users. The underlying theoretical notion of this paper can be found in the theory of intellectual capital, which starts from the central thesis that value is created by leveraging the knowledge and knowing capability of organizations. As this paper proposes, the creation of HRSS value is enabled by the leverage of both human and organizational capital. Yet the relative importance of both human and organizational capital depends on the type of HR services that are offered by HRSS. Ultimately, the conceptual model that is presented in this paper should enable a future empirical investigation of HRSS value creation.
|Number of pages||23|
|Publication status||Published - 8 Oct 2009|