A configuration taxonomy based on business process orientation: evidence from organizations in Indonesia

Abstract

PurposeThis study aims to develop a taxonomy of organizations according to business process orientation (BPO) maturity and investigate the difference between clusters in terms of performance outcome.Design/methodology/approachA survey of various organizations in Indonesia is conducted. The main variables are critical practices (CPs) as the measurement variables of BPO maturity and performance outcome. Cluster analysis is performed to obtain an empirical taxonomy of the organizations. ANOVA test is used to test if there are statistically different performance outcomes across different clusters.FindingsCluster analysis resulted in six archetypes labeled according to their characteristics: Beginners, Non-technical, Domestics, IT laggards, Excellers, and Champions. The ANOVA test results show that the archetypes with high CPs tend to have high perceived performance results.Research limitations/implicationsThis study is limited because the authors use a single dataset from organizations in Indonesia. Further study involving more organizations will be beneficial to validate and enrich the taxonomy of organizational archetypes.Practical implicationsResults of the study can be used as a benchmarking tool by organizations to identify their positions against other organizations and set their areas for improvement. It can also help them identify a roadmap for improvement that will benefit their organization.Originality/valueUsing the CPs as a measure of BPO enables the authors to identify supplier orientation and information and technology (IT) implementation as the primary differentiators within the taxonomy. The use of IT differentiates the bottom, middle and top clusters.