Ruhanita Maelah

Accounting outsourcing turnback: process and issues

Purpose – The purpose of this paper is to provide understanding on the process of accounting outsourcing turnback from the clients perspective. The aim is to understand the issues faced by clients during turnback process, and provide recommendations to resolve them.Design/methodology/approach – This study adopts a qualitative interpretive case study approach. Data were collected based on documentation, archival records, direct observation, and interviews to allow for triangulation.Findings – This study provides empirical evidence of accounting outsourcing turnback process. Some of the issues faced by clients include lack of management support, limited financial and human resources, and uncooperative vendors.Research limitations/implications – Theoretically, this study extends Elliots model by providing empirical evidence on process, identifying issues, and discussing recommendations on accounting outsourcing turnback. The limitation is the use of a single case study of a small company in Malaysia.Practi...

Mitigating risks in a shared service relationship: the case of a Malaysian bank

Purpose - A shared service (SS) arrangement involves an intra-firm interrelationship, since the SS centre (SSC), operated as an independent business unit, provides services to clients who are other independent business units in the same company group. The purpose of this study is to provide an understanding of risks and controls used in mitigating SS risks. Design/methodology/approach - This study adopts a qualitative approach using a case study of a SSC in a bank group in Malaysia. The risks and control framework developed by Das and Teng was used to analyse the appropriate control mechanisms for mitigating internal outsourcing risks, namely relational risk and performance risk. Findings - The main relational risk identified is the possibility of opportunistic behaviour. However, this risk could be mitigated through social control especially when both parties share norms and values. Performance risks in SSC are mainly related to unsatisfactory services in terms of incomplete information, system errors and human mistakes. These risks could be mitigated using either behaviour control or output control. Behaviour control can be exercised through performance reporting, while output control can be achieved through key performance indicators (KPIs) and service level agreements (SLA). Research limitations/implications - This study is limited to a single case study of a SSC with a certain type of arrangement and discusses business process outsourcing (BPO) in general. Future research may examine cases with other SS arrangements, detailed examination of each BPO and incorporate multi-perspective views from both SSC and their clients. Issues concerning changes in control in the evolving situation of SSC and bargaining power and trust in mitigating SSC risks are also worth exploring. Practical implications - The studys findings enable practitioners to draw insights to develop effective control strategies to mitigate risks in intra-organizational relationships such as SSC. Originality/value - The paper adds to our knowledge of control mechanisms for mitigating risks in the SS relationship, which is a relatively new concept in the literature.

Accounting outsourcing practices in Malaysia

Purpose – Firms in Malaysia are in an enviable position in view of Malaysias standing as a leading outsourcing hub in the region. Despite that, little is known about the accounting outsourcing practices, risks and control in Malaysia. This paper aims to explore the practices, decisions, processes and perception of risks and control in accounting outsourcing.Design/methodology/approach – This paper is written based on survey data which were collected using a questionnaire. The questionnaires were directed to the head of the accounts and finance department of each company. A total of 51 companies participated in this study and approximately 47.1 percent of the respondents are involved in accounting outsourcing.Findings – Findings show that the most common outsourcing activities are financial reporting and auditing while the main reasons to outsource are quality service, core competencies and scale economies. The decision to outsource accounting services is related to the type of industry and expertise in t...

Transaction costs in finance and accounting offshore outsourcing: a case of Malaysia

Purpose – Finance and accounting (FA) offshore outsourcing is a growing trend involving a relocation of business processes to Asia but only few studies focus on understanding the issues that underlie the relocation of FA services. This paper aims to provide understanding of transaction costs economics (TCE) issues in FA offshore outsourcing using a case study of the Malaysia outsourcing industry which is growing and experiencing significant change.Design/methodology/approach – This study uses a qualitative case study approach. Interviews cover several foreign firms, which are based in Malaysia and involved in FA offshore outsourcing services worldwide. Interviews also include related regulatory bodies in Malaysia.Findings – Using TCE and management control theoretical framework, findings indicate issues and challenges faced by the firms and the need for contract management skills to mitigate the issues.Research limitations/implications – This study is limited to a broad discussion of FA offshore outsourci...

Internship for accounting undergraduates: comparative insights from stakeholders

Purpose – This study utilises an internship framework to justify the need for feedback from all three groups of internship stakeholders. The purpose of this paper is to determine the benefits, skills, and outcomes students gained through internships from the perspective of students, university and employers. Design/methodology/approach – A set of structured questionnaires was used to survey the perceptions of students, university and employers of an accounting internship. A total of 172 responses were analysed. Findings – Findings show that all three groups of stakeholders perceived that students benefit from the internship programme. They also perceived that an internship provides the students with both the technical and soft skills required in the marketplace. However, the mean score and ranking differ among the students, university and employers. Research limitations/implications – The study was conducted based on feedback on a single accounting programme. Therefore any characteristics inherent in this...

Management control in accounting outsourcing services

Purpose – The purpose of this paper is to provide evidence of accounting outsourcing practices in Malaysia and the management control strategies undertaken by these practising firms to mitigate inherent risks.Design /methodology/approach – This study employs survey methodology using structured questionnaires and case studies using interviews. A total of 51 companies responded to the questionnaires and two companies participated in the interview.Findings – The survey data revealed that the primary reason for engaging in accounting outsourcing was to gain quality accounting service from the experts. With regard to management control strategies, it was shown that respondents place high emphasis of behavior, output and social controls. Further investigation using case studies involving a vendor and client companies reveal that the control mechanisms involved were stated in the outsourcing contract, namely the use of Key Performance Indicators (KPIs) and penalties. Informal controls were also used in both case...

Pricing for Higher Education Institutions: A Value-Based Approach.

Purpose – The purpose of this paper is to propose the concept of higher education institutions (HEIs) offering educational services based on value for money. The value is determined based on customers’ (i.e. students) expectations of the service and the costs in comparison to the competitors. Understanding the value and creating customer value are a means to attain competitive advantage and constitute the basis of price setting. Drawing upon this belief, as an initial step towards value-based pricing method, the possible value factors are suggested for calculating educational programme prices across HEIs. Design/methodology/approach – This is a conceptual paper introducing the value-based pricing approach in setting HEI tuition fees. Extending prior discussion on the demand for quality education and current financial challenges faced by HEIs, it introduces the concept pricing based upon customer perceived value (student/industry). Value-based pricing is deemed appropriate in view of the value of short tan...

Power and Trust as Factors Influencing Tax Compliance Behavior in Malaysia

This study adopted the slippery slope framework in the context of tax compliance in Malaysia tax. Thus, the research objective is to examine the effect of slippery slope factors on tax compliance. The slippery slope consists of power and trust. Power is distinguished between legitimate power and coercive power. Power and trust have different influence on tax compliance. Trust is perceived to influence voluntary tax compliance and power influences enforced tax compliance. Survey method is used to collect data involving individual taxpayers as respondents. The findings suggest that only trust has significant effect on tax compliance. Meanwhile, neither legitimate power nor coercive power could influence tax compliance.

Talent Pool for Global Business Services: Industry-Academia Collaboration

In the rapid development of Global Business Services (GBS) industry, there is a need to nurture quality and capable talent pool. One of the efforts is through industry-academia collaboration in offering of GBS course at the university. Universiti Kebangsaan Malaysia (UKM) together with TalentCorp and Malaysia Digital Economy Corporation (MDEC) collaboratively developed the first GBS course in Asia. The course consists of three days of intensive seminar and ten weeks of case study project. Both seminar and case study project require direct interaction with GBS firms. The purpose of this paper is to assess the challenges of offering the GBS course faced by its stakeholders. Based on data gathered through survey and roundtable discussions, this paper presents challenges in delivering the course content and achieving the course objectives. Findings suggest that the main challenges are commitment, time management and students’ preparation. Despite these challenges, the course has direct impacts on the stakeholders as the GBS course heightens awareness on GBS industry among future graduates and helps increase their employability in the industry

Pricing for Academic Programs at Institutes of Higher Learning

In general, this study seeks to understand how institute of higher learning (IHLs) in Malaysia determine the price of their academic programs and what are the factors that support their pricing decisions. Specifically the objectives this study are as follows: 1) To assess the present pricing strategies adopted by IHLs for their academic programs. 2) To explain financial management efforts being practiced to justify strategic pricing for academic programs.