Business Process Orientation Maturity Research Articles

Penilaian Tingkat Kematangan Proses Bisnis Pada Usaha Mikro, Kecil dan Menengah: (Studi Kasus)

The readiness of Micro, Small, and Medium Enterprises (MSMEs) to achieve competitive advantage greatly depends on the maturity level of their business processes, which ultimately affects business performance. Therefore, this study aims to assess the level of business process maturity in MSMEs. The studied MSMEs are Salakilo and Bontings, both engaged in the culinary industry. These two MSMEs are classified as superior MSMEs according to the Borneo MSME Gate and Bank Indonesia in 2021. The assessment of business process maturity is conducted using the Business Process Orientation Maturity Model (BPOMM) with four levels and nine assessment aspects. Data collection is done through the distribution of validated questionnaires by experts and MSME practitioners. The questionnaire items are tailored to the specific conditions of the studied MSMEs, making it easier for the MSME practitioners to understand each assessment indicator. The results show that there is a difference in the level of business process maturity between Salakilo and Bontings MSMEs. Salakilo MSMEs have achieved the Integrated level with a score of 6.6, while Bontings MSMEs are at the Linked level with a score of 5.8. 
 Keywords: Maturity Model, Business Process, MSME

The Relation Among Business Process Orientation Practices in Influencing Organizational Performance

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).

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

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.

An Investigation of Business Process Maturity: Report on Croatian Companies

Abstract Background: Nowadays, organizations try to improve their performance by focusing on the business process orientation (BPO) perspective. This perspective views companies as a mixture of unified business processes. A few methodologies can be used for analysing BPO maturity state. The maturity model shows the level of acceptance of the process-oriented approach in the business practice of a certain company. Recognizing different BPO levels can help companies execute, improve and manage their processes. Objectives: The primary aim of this research is to give a report on BPO maturity of Croatian companies and to stress the importance of key turning points. Methods/Approach: The cluster analysis method was used to analyse the survey results. Results: Croatian companies are currently evolving from the Defined level to the Linked level of BPO maturity. Conclusions: The results of the cluster analysis have shown that companies in Croatia have to improve all key turning points, with a special emphasis on the strategic view.

Measurement of maturity of small medium agroindustry business processes in Jember, Indonesia

Business competition cannot be separated from the existence of Micro, Small and Medium Enterprises (MSMEs) as the basic of the Indonesian economy. The number of agricultural sector MSMEs in East Java has a greater proportion than non-agricultural MSMEs. The economies in Jember Regency are supported by one from the agriculture sector. Maturity of business processes is one of the factors that greatly influences the readiness of MSMEs in implementing information systems in supporting their business operations. The assessment of business process maturity can be done using the Business Process Orientation Maturity Model (BPOMM) where this model has nine assessment areas. The study was conducted at three Agroindustry MSMEs in Jember Regency. This study compares the level of business process maturity of each MSME and provides input related to the areas that need to be improved by the three MSMEs. The results obtained from this research are the maturity of the third MSME business processes at level 1 (Ad Hoc) where the Mister Te maturity value is 3,859; UD Mitra Jamur of 3,484; and Bestcow 2,917.

Business process orientation in the Slovenian power supply

PurposeThe purpose of this paper is to empirically evaluate business process orientation (BPO) of the Slovenian power supply business.Design/methodology/approachWithin the empirical investigation, the level of BPO maturity was measured in the 19 organizations of the power supply business. The survey was focused on the top, middle and lower managers. As a measuring instrument, a questionnaire for the extended concept of process orientation with nine elements was used.FindingsThe results of the BPO measurement show that, despite this long-standing preoccupation with processes, certified management system and the computerization of operations, process maturity is not high. Particularly the lowest score for information technology represents a surprise.Practical implicationsThis research makes significant contributions to the literature and above all to scholars and practitioners who work professionally in this field and will find useful guidance for a better understanding of applying BPO and maturity models.Social implicationsOne important reason for performing the maturity measurement in the power supply business is the importance of its activities for the operation and development and environmental impact of the whole of Slovenian society.Originality/valuePresented research is the first one which considers the BPO maturity in the Slovenian power supply business and therefore contributes to understanding of the “intangible factors” which have impact on the introduction of business process management and BPO.

Decision tree learning for detecting turning points in business process orientation: a case of Croatian companies

Companies worldwide are embracing Business Process Orientation (BPO) in order to improve their overall performance. This paper presents research results on key turning points in BPO maturity implementation efforts. A key turning point is defined as a component of business process maturity that leads to the establishment and expansion of other factors that move the organization to the next maturity level. Over the past few years, different methodologies for analyzing maturity state of BPO have been developed. The purpose of this paper is to investigate the possibility of using data mining methods in detecting key turning points in BPO. Based on survey results obtained in 2013, the selected data mining technique of classification and regression trees (C&RT) was used to detect key turning points in Croatian companies. These findings present invaluable guidelines for any business that strives to achieve more efficient business processes.

Increasing process orientation with business process management: Critical practices’

This paper studies the role of business process management in creating a higher business process orientation. The purpose is to analyze previously suggested practices to identify those that are critical at a certain business process orientation maturity level and those that are not. A case study is used to identify the critical success factors. Then a statistical analysis of a sample of 324 companies is undertaken to operationalize the success factors in the form of critical practices. Organizations following these critical practices at a certain level will reach higher process orientation sooner.

Supply chain maturity and performance in Brazil

Purpose – The purpose of the paper is to investigate the relationship between supply chain maturity and performance, with specific references both to the business process orientation maturity model and to the supply chain operation reference model.Design/methodology/approach – Quantitative, survey based research was carried out with 478 Brazilian companies. Statistical analysis combined the use of descriptive statistics and structural equation modeling.Findings – Empirical results indicate a strong and positive statistical relationship between supply chain maturity and performance. The results also suggest that the deliver process maturity has a higher impact on overall performance than the other supply chain processes.Research limitations/implications – Quantifying supply chain maturity and performance is an opportunity for a company to align its performance measurements and process improvement actions with its broader policies and strategies. The use of this approach has been validated in several previo...