Business Process Management Organizational Performance and Competitiveness: The Mediatory Role of Supply Chain Collaboration

Abstract

Supply chain relationships and inter-organizational collaboration represent very active and well-established research domains in the literature. The importance of business process management and collaboration is highly recognized in terms of the productivity of the firms. To aid in the performance and competitiveness of Pakistani manufacturing firms it is important to assess the business management practices and the collaboration between the companies. Therefore, this quantitative study assesses to what extent business process management influences the performance of the companies and competitiveness with the mediatory role of supply chain collaboration. Business Process Management was measured through Information Technology (BPIT), Process Orientation and Improvement (BPOI), People Involvement (BPPI), Strategic Alignment (BPSA). Whereas SC Collaboration included constructs namely Sharing Common Goals (SCCG), Incentive Alignment (SCIA), Information Sharing and Communication (SCIC), and Joint Activities (SCJA). The data was collected from manufacturing companies of Pakistan that operate with supply chain management by means of a close-ended questionnaire. Data were analyzed using Confirmatory Factor Analysis and Structured Equation Modeling. The results suggest that business process management significantly influence supply chain collaboration and organizational performance. Regarding supply chain collaboration it was revealed that it significantly affects collaborative advantage though it doesn’t have any impact on organizational performance. Also, there was no significant relation between collaborative advantage and organizational performance. Therefore it can be said that supply chain collaboration works as a mediator between business process management and collaborative advantage, however, it does not mediates between supply chain collaboration and organizational performance.