Changing institutional logics: shifting to a new service model in the Finnish public sector

This paper describes the implementation of corporatized shared services (CSS) in Finnish municipalities and the shift of operating logics. The diffusion of the new logics gradually proceeded to two levels: the individual level and the collective level. At the individual level, identity and cognitive skills were important to the diffusion of the new logics. At the collective level, shared services encouraged managers and employees to share not only practical experiences, but also collective identity.By studying the adoption of corporatized shared services (SSC), providing accounting and HR services in Finnish municipalities, we prove how this new organizational form was an important starting point for new, more efficient, customer-oriented approaches to be introduced into municipal support services. When new organizational practices are introduced, it is critical to recognize individual cognition and identities as fundamental mediators in order that staff adopt more customer-oriented thinking. An important finding for practitioners was that the opportunity to network with other professionals might empower employees and stimulate innovation.