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Economic Multiplier Effect of Shared Service Centres

Author

Listed:
  • Anna Kislovska
  • Rima Tamošiūnienė

Abstract

Development of Business Services market influences the growing interest in researches on increase of business value by centralizing business functions and establishment of Shared Service Centres (SSC). SSCs are usually being defined as competitive efficiency oriented business model, which plays an important role in increase of microeconomic value expressed in decreased costs, improved effectiveness and quality of the business processes. However, SSC can be also defined as economic catalyst, implementation of which leads both to microeconomic to macroeconomic value and multiplication of this value. This increase in value is known as multiplier effect, which occurs in different phases of economic value chain. Causality between different forms of Foreign Direct Investments (FDI) such as SSCs and economic growth is usually being expressed by analyzing changes of Gross Domestic Product (GDP). However, there is number of other macroeconomic indicators, which being affected by SSCs. Number of employed in SSCs is one of the indicators, which leads to wages, income, purchasing power, spending, supply and other multiplier effects.

Suggested Citation

  • Anna Kislovska & Rima Tamošiūnienė, 2016. "Economic Multiplier Effect of Shared Service Centres," Ekonomika a Management, Prague University of Economics and Business, vol. 2016(4).
    • Handle: RePEc:prg:jnleam:v:2016:y:2016:i:4:id:295
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    References listed on IDEAS

    as
    1. Domański Bolesław & Gwosdz Krzysztof, 2010. "Multiplier Effects in Local and Regional Development," Quaestiones Geographicae, Sciendo, vol. 29(2), pages 27-37, June.
    2. Kresimir Cicak & Petar Soric, 2015. "The Interrelationship of FDI and GDP in European Transition Countries," International Journal of Management Science and Business Administration, Inovatus Services Ltd., vol. 1(4), pages 41-58, March.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Shared Service Centers; Economic Value; Economic Multiplier Effect; Shared Service Centers; Economic Value; Economic Multiplier Effect;
    All these keywords.

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • D29 - Microeconomics - - Production and Organizations - - - Other
    • E27 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Forecasting and Simulation: Models and Applications
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • J49 - Labor and Demographic Economics - - Particular Labor Markets - - - Other

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