The Impact of Business Process Orientation on Organizational Performance

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. The paper presents the results of the empirical research that confirms the impact of business process orientation on organizational performance in transition economy by using structural equation modeling. The link is even stronger than in the original investigation. Besides that more detailed specification of organizational performance that includes non-financial performance measures has been used. The results show that business process orientation leads to better non-financial performance and indirectly to better financial performance.