Shared Services Centers Synergy and Performance in Selected Multinationals in Kenya

Abstract

The purpose of this study was to look at shared services centers synergy and performance in selected multinational corporations in Kenya. The study was based on the theoretical concepts such as the principal-agent theory, the transaction cost theory, the resource-based view and the property-right theory, to explain parts of the shared service concept. The study employed descriptive research design approach, to assess shared services centers as a new trend in MNCs in Kenya. It involved seeking the opinions of senior level management across all departments at MNCs in Kenya. The study targeted 3 MNCs and senior personnel charged with SSCs.Primary and secondary data were used for this study. Questionnaires were used to collect primary data while secondary data was derived from sources such as the company‟s internal documents and website. Questionnaires was administered through drop and pick method. Questionnaires was left for the respondents to fill in their own time and picked after a week, to allow them time to read, understand and fill in the forms with minimal time pressure. Qualitative and quantitative data was generated by this study. Quantitative data analysis was achieved through descriptive statistics by use of mean scores, frequencies and percentages. Qualitative data analysis will include text and document analysis which involves reviewing, categorizing and tabulating evidence to understand the information and achieve the objective of the study, the presentation was done in form of paragraphs. Presentation of qualitative data was done through pie charts, bar graphs and tabulations. Percentages, mean frequencies and standard deviation were displayed in a table. The study has established that SSC synergy greatly contributes to the core competence and knowledge of organization. It has also key in enhancing control mechanisms as well as enhancing output. The researcher recommends that the same best practices used to gain a competitive advantage with multinational should be applied in local organizations to create a partnership that meets the needs of both sides of the internal relationship customer and supplier.