GLOBAL BUSINESS SERVICES AN INNOVATION, GROWTH AND BUSINESS INTEGRATION IN EMERGING MARKETS
Purpose – The purpose of this paper is to explore the contribution of Global Business Services (GBS) for increasing the efficiency, cost reduction and economic growth of global economies that are overlooked in service research. Service providers can be either internal or external and managed by GBS organizations centrally that offers end-to end efficient standardized processes across the globe.
Design/methodology/approach – Industry reports and macroeconomic data from World Bank (1970 to 2020) has been used of emerging market BRICS countries (Brazil, Russia, India, China and South Africa), these markets account 39 percent in the global economy in terms of gross domestic product and one fourth in the total value of stock markets. Data of GBS is not available therefore, services value added as percent in Gross Domestic Products (GDP) has been taken as a proxy variable in place of GBS.
Findings – There is a long run association between Chemical (CHEM), Textile (TEX) and GBS in Pakistan. In BRICS economies, long run coefficients are negative and significant which shows there is a long run relationship among Exchange Rate (ER), Research and Development (R&D) to GBS. Thus, Business services can be extended in these areas for the long-term growth for service economy in emerging markets.
Research limitations/implications – The study will find new ways in Global Business Services (GBS) research and the specific research methodology can lead to various techniques and opportunities for defining, processing and making an advance analysis of GBS data globally. This work is limited to BRICs emerging market including Pakistan.
Originality/value – This is the first quantitative research study of GBS that has been conducted. It will help to build strategies and methods in driving business performance in the global business environment and the international transformation of service economies.