A Dynamic Capability-Based Framework for Business Process Management: Theorizing and Empirical Application

Abstract

Both incremental and radical business process change are undoubtedly core tasks of Business Process Management (BPM) and, thus, organizational design. The competence to successfully pursue such BPM initiatives represents an important capability which is needed by organizations exposed to a dynamic business environment. While the term BPM is omnipresent, research still lacks both a clear understanding and a theoretical framework in order to explain what constitutes BPM capability. To address this research gap, we apply Dynamic Capability Theory as a helpful means to conceptualize BPM. We further build a detailed framework of sub-capabilities we identify to be relevant for BPM based on existing literature. Finally, we demonstrate the applicability of our novel framework in a single case study in the telecommunications industry. Results suggest that organizations need to sense needs and opportunities for process change, seize the change options, and transform the organization accordingly.