Authors: Škrinjar, Rok; Bosilj-Vukšic, Vesna; Indihar-Štemberger, Mojca

Source: Business Process Management Journal, Volume 14, Number 5, 2008 , pp. 738-754(17)

Publisher: Emerald Group Publishing Limited

Abstract:

<B>Purpose</B> - Extensive literature on business process management suggests that organizations could enhance their overall performance by adopting a process view of business. However, there is a lack of empirical research in this field. The purpose of this paper is to investigate the understanding of the process view and process maturity levels in a transition economy and to test the impact of process orientation maturity level on organizational performance. <B>Design/methodology/approach</B> - Empirical investigation combined an exploratory-confirmatory approach using factor analysis and structural equation modeling. <B>Findings</B> - The investigation confirms the impact of business process orientation on organizational performance in a transition economy. The link is even stronger than in the original investigation. The results show that business process orientation leads to better non-financial performance and indirectly to better financial performance. <B>Practical implications</B> - The research confirms that business process orientation is advantageous for companies since it has a positive influence on organizational performance. The finding that the impact on financial performance is indirect through non-financial performance suggests that the companies have to take that view of performance into consideration as well. <B>Originality/value</B> - The paper is valuable for academics and practitioners because the impact of business process orientation on organizational performance has been confirmed for a transitional economy. Its originality is in the measurement of organizational performance, for which a more detailed specification of organizational performance based on the balanced scorecard concept that includes non-financial performance measures has been used.

Keywords: Mathematical modeling; Organizational performance; Process management

Document Type: Research article

DOI: http://dx.doi.org/10.1108/14637150810903084

Publication date: 2008-09-12

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