Between Business Process Management Research Articles

Business process management and risk-adjusted performance in SMEs

PurposeThis paper aims to examine the relationship between business process management (BPM) and company performance. The research focuses on the instrumental aspect of core business processes and its controlling activities in small and medium-sized companies (SMEs) to identify the relationship to company performance.Design/methodology/approachThe results presented in this paper are based on a survey of Slovene SMEs. A questionnaire was distributed to 3007 SMEs via e-mail and a response rate of 5.42% was achieved. The financial data of companies over a six year period as derived from the publicly available financial reports of SMEs along with an industry-specific financial risk measure and other financial data were used for the company risk-adjusted performance measures of relative residual income (ROE-r) and risk-adjusted ROE (ROE-a) calculation.FindingsThe results show that instrumental aspects of core business process controlling activities are related to risk-adjusted company performance measures ROE-r and ROE-a. Companies with lower ROE-r and ROE-a have been perceived to be more focused on the instrumental aspect of BPM. Presumably due to the small sample, the results of a non-parametric Mann–Whitney U test did not statistically confirm the developed hypothesis: “the instrumental aspect of controlling as a core process management activity has a statistically significant impact on company risk-adjusted performance measures such as ROE-r and ROE-a.” Despite this, the results show a possible negative correlation between risk-adjusted performance measures and BPM, which opens possibilities for further research.Research limitations/implicationsThe main limitation of the purposed study model is that the paper have studied only control activities of core business processes and relate it to company risk-adjusted performance measures. The study has been limited by the SME sample and the use of a survey as a research instrument. An additional limitation of the research is the degree of reliability implied by the assumptions of the models used to estimate the required return on equity and risk. Results concern investors, managers and practitioners to start BPM improvement initiatives, to set BPM priority measures and to set priority management decisions and further actions.Originality/valueThis paper presents the unique findings from an investigation of the instrumental aspects of BPM practices and their relationship to company risk-adjusted performance measures in SMEs. This paper developed a measurement instrument for measuring the instrumental aspects of BPM use. An additional original contribution is the use of company risk-adjusted performance measures such as ROE-r and ROE-a, which take into account the required profitability of companies in different industries according to the risk and allows comparable results of companies from different industries. The approach is innovative and interesting as regards researching the factors that affect the profitability of companies that operate in different industries.

A quantitative and qualitative study of the link between business process management and digital innovation

The information revolution leaves its mark on businesses, resulting in organizations looking for digital innovation (DI) to apply to their business processes and anticipate competitors. Since the interplay between business process management (BPM) and DI has been underdeveloped, this mixed-methods article investigates the strength and nature of the relationship. We supplement the findings of an international survey (stage 1) with explanations from an expert panel (stage 2) to generalize a positive yet moderate link because of manifold contextual factors affecting strategic decision-making. We extend the technology–organization–environment (TOE) framework and profile organizations along their digital process innovation (DPI) mastery in a readiness matrix.

The knowledge and process dimensions

PurposeThe aim of this article is to present the relationship between the nature of business processes (BPs) and the nature of knowledge used in the course of their execution on the basis of an analysis of the relevance of different dimensions of BPs. The conclusion presented herein points to the inextricable relationship between business process management (BPM) and knowledge management (KM) in the knowledge economy (KE).Design/methodology/approachThe paper is conceptual in nature and is grounded in the theories of BPM and KM.FindingsThe article analyses the significance of the changing nature of BPs for particular dimensions of BPs, as well as the relationships between the nature of BPs and the kinds of knowledge used in subsequent stages of the BPM Lifecycle. These relationships, which are primarily tied to the dimensions of BP Unpredictability and Knowledge-intensity, should be taken into account in each element of the BPM ecosystem to a larger degree, the larger the significance of processes which require dynamic management in an organization.Research limitations/implicationsThe article is a contribution to the theoretical reflection on the holistic approach to BPM. It expressly points to the inevitable necessity of integration (dynamic) BPM with KM, with the exception of the specific case of traditional BPM, which encompasses structured BPs. This integration requires us to take into account the influence of KM in virtually all of the elements of the BPM ecosystem.Practical implicationsThe article points to the necessity of researching the nature of executed and managed BPs as early as in the course of preparing the organization to implement BPM in the KE. The aim is to select and/or adapt implementation methodologies and systems, supporting BPM in the organization to the real BPs nature. The analysis presented in the article on the dimensions of BPs points to the particular significance of the method of adjusting elements of the BPM ecosystem in the execution and analysis and diagnosis stages of the BPM lifecycle.Originality/valueThe article presents an original view of the interrelations between BPM and KM in the knowledge intensive organizations (KIOs) in the KE.

Capabilities for managing business processes: a measurement instrument

PurposeWell-founded measurements are of high value because a better connection between business process management (BPM) and maturity models (MMs) improves an organization’s performance. Although MMs are appropriate tools for organizations to manage their business processes and, therefore, enjoy popularity, most of these models suffer from their foundation, validation and/or capability coverage. The purpose of this paper is to address this issue by providing metrics to measure and manage business processes.Design/methodology/approachA high-standard and multistaged procedure was followed to systematically develop and validate the measurement instrument involving international academics and practitioners across four continents. Different rounds were used for item identification, item selection, item revision, instrument preparation (pretest and pilot) and instrument application using partial least squares structural equation modeling.FindingsThe instrument measures 4 main capability areas, 13 subareas and 62 items. The work explains how to conduct BPM assessments in a more theoretically sound way and reports on the instrument’s development to show high levels of construct validity, content validity and reliability.Research limitations/implicationsThe author provides a rigorous and more evidence-based instrument, facilitating the BPM discipline’s need of empirical research.Practical implicationsThe author proposes parameters to configure the instrument.Originality/valueServing as a reference framework, the instrument strengthens BPM’s empirical and theoretical foundations. Since the instrument is free for scholars and practitioners, the author illustrates the research streams and business situations in which the instrument can be applied (in full or in part). This paper paves the way for transforming the instrument into an optimization MM with advice or improvement paths, bridging the gap between theory and practice.

Nexus between business process management (BPM) and accounting

PurposeMultidisciplinary business process management (BPM) research can reap significant impact. We can particularly benefit from incorporating accounting concepts to address some of the key BPM challenges, such as value-creation and return on investment of BPM activities. However, research which addresses a relationship between BPM and accounting is scarce. The purpose of this paper is to provide a detailed synthesis of the current literature that has integrated accounting aspects with BPM. The authors profile and thematically describe existing research, and derive evidence-based directions to guide future research.Design/methodology/approachA multi-staged structured literature review approach to search for the two broad themes, accounting and BPM, supported by NVivo (to manage the papers and the coding and analysis processes) was designed and followed.FindingsThe paper confirms the dearth of work that ties the two disciplines, despite the synergetic multidisciplinary results that can be attained. Available literature is mostly from the management accounting perspective and relates to describing how performance management, in particular performance measurement, can be applicable to process improvement initiatives together with tools such as activity-based costing and the balanced scorecard. There is a lack of research that examines BPM in relation to any financial accounting perspectives (such as external reporting). Future research directions are proposed together with implications for practitioners with the findings of this structured literature review.Research limitations/implicationsThe paper provides a detailed synthesis of the existing literature on the nexus between accounting and BPM. It summarizes the implications for practitioners and provides directions for future research by identifying key gaps and opportunities with a sound contextual basis for extension and new work.Originality/valueEffective literature reviews create strong foundations for future research and accumulate the otherwise scattered knowledge into a single place. This is the first structured literature review that provides a detailed synthesis of the research that ties together the accounting and BPM disciplines, providing a basis for future research directions together with implications for practitioners.

Business process management and supply chain collaboration: a critical comparison

The link between a firm and supply chain (SC) members has been recognised as one of the key issues for ensuring business success and achieving competitive advantage. Indeed, working across organisational boundaries is required to accomplish effective responses to customers’ needs. Our preliminary research confirmed that there are positive relationships between business process management (BPM), supply chain collaboration (SCC), collaborative advantage and organisational performance. This study is a step further and uses a multiple case design to illuminate the results and gain a greater understanding from extensive discussions about these relationships. By means of semi-structured interviews, the three main issues were identified as: (1) the link between BPM and organisational performance; (2) the link between BPM and SCC; and (3) the contextual factors and benefits achieved from working collaboratively with SC partners. The different scenarios of the link between BPM and SCC were developed in a taxonomy, and the case studies were used to illustrate the experience of intra- and inter-organisational practices in the developing economy of Thailand. The case studies’ results explain in depth that both BPM and SCC are important for improving organisational performance and competitiveness. BPM not only improves organisational performance directly, but also assists with collaborative activities that in turn help to improve internal capabilities. Additionally, the comparisons in issues relating to firm size, industry type, relationship closeness and relationship length were also included in this study.

The joint impact of service-oriented architectures and business process management on business process quality: an empirical evaluation and comparison

What is the interplay between business process management (BPM) and service-oriented architecture (SOA) in achieving high business process quality? In this paper, we empirically investigate the impact of both SOA and BPM on business process quality in terms of straight-through processing, business-to-business integration, quality control, as well as standardization and consolidation of business processes. For the empirical evaluation of our model, we use the data of 157 German service firms. The results show that the SOA paradigm has still received rather low adoption rates in the industry. However, SOA, BPM, and related information technologies have a direct positive impact on business process quality and the analysis provides evidence for the complementarities of BPM and SOA since interaction effects between them have an additional significant impact on business process quality. Consequently, firms having adopted SOA can more effectively apply BPM.

Alternative perspectives on service quality and customer satisfaction: the role of BPM

PurposeThe purpose of this paper is to further investigate the linkages between business process management (BPM) and customer satisfaction. Also, to challenge the dominance of the customer contact perspectives on service processes and to propose a more systemic focus on the totality of service design.Design/methodology/approachThe research builds on the existing work of Maddern et al. through the use of structured equation modelling (SEM) tool. The multiple SEM models described here provide a more robust statistical approach for confirming/refuting the constructs found in the earlier research.FindingsThis paper presents the results of an empirical analysis, based on longitudinal data from a large UK bank on drivers of customer satisfaction. The results confirm that process management is a critical driver of technical service quality. This suggests that companies with reliability/dependability issues should not emphasise customer satisfaction programmes based on SERVQUAL intangibles until substantial improvements in process design have been achieved.Research limitations/implicationsThe research is limited to a single case study of a UK bank over a five year period. The generalisibility of these findings is therefore limited. Further work in other sectors and over longer periods would establish the reliability of the findings. The paper also highlights some limitations in the service operations literature, particularly the emphasis on customer presence within the service process.Originality/valueThe paper uses time series data to identify the importance of BPM in achieving higher levels of customer satisfaction. The authors provide a platform for further research based on the design of service delivery systems and their impact on customer satisfaction.