The Relation Among Business Process Orientation Practices in Influencing Organizational Performance

Stefanus Christian Susetyo Harjanto, ER Mahendrawathi

Abstract


Organizations always look for ways to improve their performance to survive in the business environment. One way to improve organizational performance is to improve business process orientation (BPO). Several studies identified practices that can be implemented and significantly impact an organization’s BPO maturity. These practices are called Critical Practices (CPs) strategic view, process definition and documentation, process measurement and management, organizational process structure, people management, process organizational culture, market orientation, supplier view, and information technology. However, most studies treat CPs independently, and the relationship between CPs and between CPs with organizational performance has not been addressed. This study tests and confirms the relationship between CPs, BPO, and organizational performance. Based on the literature, a structural model of the relationship between CPs and organizational performance is developed. An online questionnaire is designed to collect data from various organizations in Indonesia. The survey results are analyzed using Structural Equation Modeling (SEM) to investigate the relationship between variables. Most hypothesized relationships between CPs are confirmed except the relationship between supplier practices (SU) and culture (CT), which are not supported. Not all practices affect organizational performance directly, but they must be mediated by other practices to have a significant effect. The results suggest that to improve organizational performance, an organization needs to improve the practice of strategic view (SV), performance measurement (PM), customer (CU), process definition (PD), and information technology (IT).

Keywords


Critical Practices; Business Process Orientation, Organizational Performance

Full Text:

Full Text

References


Nadarajah D, Kadir SLSA. Measuring Business Process Management using business process orientation and process improvement initiatives. Business Process Management Journal 2016 11;22:1069–1078.

McCormack KP, Johnson WC. Business Process Orientation. Boca Raton: CRC Press; 2001.

McCormack K, Willems J, den Bergh JV, Deschoolmeester D, Willaert P, Štemberger MI, et al. A global investigation of key turning points in business process maturity. Business Process Management Journal 2009 9;15:792–815.

Looy AV, Backer MD, Poels G. A conceptual framework and classification of capability areas for business process maturity. Enterprise Information Systems 2014;8:188–224.

Looy AV, Trkman P, Clarysse E. A Configuration Taxonomy of Business Process Orientation. Business Information System Enginering 2021;https://doi.org/10.1007/s12599-021-00700-4.

Lockamy A, McCormack K. The development of a supply chain management process maturity model using the concepts of business process orientation. Supply Chain Management: An International Journal 2004;9:272–278.

Rosemann M, Bruin TD. Towards a business process mangement maturity model. Proceedings of the 13th European Conference on Information Systems, Information Systems in a Rapidly Changing Economy, ECIS 2005 2005;p. 26–28.

Weber C, Curtis B, Gardiner T. Business Process Maturity Model. Object Maanagement Group; 2008.

Tarhan A, Turetken O, Reijers HA. Business process maturity models: A systematic literature review. Information and Software Technology 2016;75:122–134.

Škrinjar R, Trkman P. Increasing process orientation with business process management: Critical practices’. International Journal of Information Management 2013 2;33:48–60.

Looy AV. Capabilities for managing business processes: a measurement instrument. Business Process Management Journal 2020 1;26:287–311.

Carlsson SA, Sawy OAE. Decision Support in Turbulent and High-Velocity Environments. In: Handbook on Decision Support Systems 2 Springer Berlin Heidelberg; 2008.p. 3–17.

Bandara W, Indulska M, Sadiq S. Major Issues in Business Process Management: A Vendor Perspective. In: Pacific Asia Conference on Information Systems (PACIS) Auckland, New Zealand: PACIS; 2007. p. 40–47.

Kumar U, Lavassani KM, Kumar V, Movahedi B. Measurement of Business Process Orientation in Transitional Organizations: An Empirical Study. In: Lecture Notes in Business Information Processing Innsbruck, Austria: Springer; 2008.p. 357–368.

Guha S, Kettinger WJ. Business Process Reengineering: An Analysis Perspective. Information Systems Management 1993;10:13–22.

Leavitt HJ. Top Down: Why Hierarchies Are Here to Stay and How to Manage Them More Effectively. Human Resource Planning 2005;28.

Groznik A, Masslaric M. Achieving competitive supply chain through business process re-engineering: A case from developing country. African Journal of Business Management 2010;4:140–148.

Liu CT, Guo YM, Lee CH. The effects of relationship quality and switching barriers on customer loyalty. International Journal of Information Management 2011 2;31:71–79.

Xu Y, Yen DC, Lin B, Chou DC. Adopting customer relationship management technology. Industrial Management & Data Systems 2002 11;102:442–452.

Chang HH, Wang IC. Enterprise Information Portals in support of business process, design teams and collaborative commerce performance. International Journal of Information Management 2011 4;31:171–182.

Kumar V, Movahedi B, Kumar U, Lavassani KM. On measuring and successful implementation of process orientation: A literature synthesis. In: the Annual Conference of the Administrative Sciences Association of Canada, Production and Operations Management Division Ottawa, Canada: ASAC; 2007. p. 71–84.

Panteli N, Sockalingam S. Trust and conflict within virtual inter-organizational alliances: a framework for facilitating knowledge sharing. Decision Support Systems 2005 6;39:599–617.

Raval SJ, Kant R, Shankar R. Benchmarking the Lean Six Sigma performance measures: a balanced score card approach. Benchmarking: An International Journal 2019 7;26:1921–1947.

Brocke JV, Mendling J. Frameworks for Business Process Management: A Taxonomy for Business Process Management Cases. In: vom Brocke J, Mendling J, editors. Business Process Management Cases Cham, Switzerland: Springer Cham; 2017.p. 1–17.

Prajogo D, Mena C, Chowdhury M. The role of strategic collaborations and relational capital in enhancing product performance – a moderated-mediated model. International Journal of Operations & Production Management 2021 5;41:206–226.

Nenonen S, Storbacka K, Windahl C. Capabilities for market-shaping: triggering and facilitating increased value creation. Journal of the Academy of Marketing Science 2019 7;47:617–639.

Froger M, Bénaben F, Truptil S, Boissel-Dallier N. A non-linear business process management maturity framework to apprehend future challenges. International Journal of Information Management 2019 12;49:290–300.

Antonucci YL, Fortune A, Kirchmer M. An examination of associations between business process management capabilities and the benefits of digitalization: all capabilities are not equal. Business Process Management Journal 2021 1;27:124–144.

ER M, Hanggara BT, Astuti HM. Model for BPM implementation assessment: evidence from companies in Indonesia. Business Process Management Journal 2019 8;25:825–859.

Vitolla F, Rubino M, Garzoni A. The integration of CSR into strategic management: a dynamic approach based on social management philosophy. Corporate Governance: The International Journal of Business in Society 2017 2;17:89–116.

Asiaei K, Bontis N. Translating knowledge management into performance. Management Research Review 2019 8;43:113–132.

Lehnert M, Linhart A, Roeglinger M. Exploring the intersection of business process improvement and BPM capability development: A research agenda. Business Process Management Journal 2017;23:275–292.

Yoshikuni AC, Albertin AL. Effects of strategic information systems on competitive strategy and performance. International Journal of Productivity and Performance Management 2018 11;67:2018–2045.

Looy AV, Shafagatova A. Business process performance measurement: a structured literature review of indicators, measures and metrics. SpringerPlus 2016 12;5.

Yu Y, Huo B, Zhang ZJ. Impact of information technology on supply chain integration and company performance: evidence from cross-border e-commerce companies in China. Journal of Enterprise Information Management 2021 1;34:460–489.

Sampaio CAF, Hernández-Mogollón JM, Rodrigues RG. Assessing the relationship between market orientation and business performance in the hotel industry – the mediating role of service quality. Journal of Knowledge Management 2019 5;23:644–663.

Patyal VS, Ambekar S, Prakash A, Roy D, Hiray A. Assessment of cultural fit between buyers and suppliers. International Journal of Quality & Reliability Management 2020 2;37:635–658.

Chatzoglou P, Chatzoudes D, Sarigiannidis L, Theriou G. The role of firm-specific factors in the strategy-performance relationship. Management Research Review 2018 1;41:46–73.

Waal AAD, Boer FAD. Project management control within a multicultural setting. Journal of Strategy and Management 2017 5;10:148–167.

Al-Ali AA, Singh SK, Al-Nahyan M, Sohal AS. Change management through leadership: the mediating role of organizational culture. International Journal of Organizational Analysis 2017 9;25:723–739.

Cohen L, Manion L, Morrison K. Research Methods in Education. Routledge; 2007.

Ferdinand A. Metode Penelitian Manajemen: Pedoman Penelitian Untuk Penulisan Skripsi, Tesis, Dan Disertasi Ilmu Manajemen. 2 ed. Badan Penerbit Universitas Diponegoro; 2006.

Solimun, Fernandes AAR, Nurjannah. Metode Statistika Multivariat : Pemodelan Persamaan Struktural (SEM) Pendekatan WarpPLS. 2 ed. UB Press; 2017.

Ongena G, Ravesteyn P. Business process management maturity and performance: A multi group analysis of sectors and organization sizes. Business Process Management Journal 2020 1;26:132–149.




DOI: http://dx.doi.org/10.12962/j20882033.v34i1.15155

Refbacks

  • There are currently no refbacks.


Creative Commons License

IPTEK Journal of Science and Technology by Lembaga Penelitian dan Pengabdian kepada Masyarakat, ITS is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Based on a work at https://iptek.its.ac.id/index.php/jts.