Improving Organizational Performance by Raising the Level of Business Process Orientation Maturity: Empirical Test and Case Study

Abstract

The extensive literature on business process management suggests that organizations can enhance their overall performance by adopting a process view of business. It has been shown in previous studies that the companies which have reached higher business process maturity level consistently outperform those that have not reached them. This chapter presents the results of the empirical research that confirms the impact of business process orientation on organizational per- formance in transition economy by using structural equation modelling. The link is even stronger than in the original investigation. Besides that more detailed specification of organizational performance that includes non-financial perform- ance measures has been used. The results show that business process orientation leads to better non-financial performance and indirectly to better financial per- formance. Because of this important finding, this chapter also presents the meth- odology for assessing, analyzing and enhancing process orientation using two case studies. 1