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Effects of outsourcing transactional processes: A multiple cases study of Swedish SMEs on risks found within the internal control
Karlstad University, Faculty of Arts and Social Sciences (starting 2013), Karlstad Business School (from 2013).
Karlstad University, Faculty of Arts and Social Sciences (starting 2013), Karlstad Business School (from 2013).
2018 (English)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

BackgroundToday’s competitive market forces companies to focus on their core processes. As a result, the number of outsourcing arrangements has grown and especially transactional processes outsourcing, which is clearly evident in Sweden. The lack of expertise and resources that characterizes SMEs makes outsourcing of transactional processes many times a necessity. However, little attention has been given the possible internal control risks associated with outsourcing (Christ et al. 2015). Moreover, frameworks such as the COSO-framework has also neglected to provide guidelines as to how companies should handle outsourcing arrangements. Although the COSO-framework argues that it can be applied to all companies, no matter the size, organizational structure or the choices management makes (COSO 2013).

AimThe aim of this study is to identify and analyze internal control risks within Swedish SMEs when outsourcing transactional processes. Moreover, the study will try to provide recommendations to the COSO-framework about how outsourcing arrangements should be handled in order to maintain an effective internal control.

MethodThe study uses a qualitative method where a multiple cases study is conducted. The study consists of three case companies where a total of four participants were interviewed through semi-structured interviews, where all participants has a managerial position at their respective company.

ConclusionThe findings within the study indicates that outsourcing transactional processes has made the case companies more effective. Moreover, the performance and relational risks identified within the case companies align with previous research where multiple risks were identified. The authors also highlights the possibility of a new risk when outsourcing transactional processes. Furthermore, the authors suggest that the COSO-framework should be modified such that the outsourcing company is a part of the control environment within companies.

Place, publisher, year, edition, pages
2018. , p. 53
Keywords [en]
Outsourcing transactional processes, internal control, COSO-framework, risks, SME
National Category
Business Administration
Identifiers
URN: urn:nbn:se:kau:diva-67984OAI: oai:DiVA.org:kau-67984DiVA, id: diva2:1223034
Subject / course
Business Administration
Educational program
Master Programme in Accounting and Control: Master (120 ECTS credits)
Supervisors
Examiners
Available from: 2018-06-25 Created: 2018-06-24 Last updated: 2018-06-25Bibliographically approved

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CiteExportLink to record
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Citation style
  • apa
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  • Other locale
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Output format
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