Dalia Suša Vugec, Vesna Bosilj Vukšić, Mirjana Pejić Bach, Jurij Jaklič and Mojca Indihar Štemberger
Organizations introduce business intelligence (BI) to increase their performance, but often, this initiative is not aligned with the business process management (BPM) initiative…
Abstract
Purpose
Organizations introduce business intelligence (BI) to increase their performance, but often, this initiative is not aligned with the business process management (BPM) initiative, which also aims to improve organizational performance. Although some findings from the literature indicate that BI implementation has a positive impact on organizational performance, the impact seems to be indirect. Therefore, the purpose of this study is to enhance the understanding of how BI maturity is translated into organizational performance. Alignment of BI and BPM initiatives seems one possible way for creating business value with BI, particularly because BI enables process performance measurement and management, which allows the BI initiative to become more business focused.
Design/methodology/approach
A questionnaire was prepared and used to collect data in Croatian and Slovenian organizations with more than 50 employees. A BI–BPM alignment measurement instrument was developed for the purpose of this study using the recommended process of scale development and validation. A total of 185 responses were analyzed by the structural equation modeling technique.
Findings
Our results provide evidence that the effect of BI on organizational performance is fully mediated by alignment of BI and BPM initiatives, and therefore, BI business value can be generated through the use of common terminology and methodologies, as well as a strong communication between BI and BPM experts, managers and teams in order to coordinate the two initiatives.
Originality/value
This study has responded to the call for better understanding of how the impact of BI on organization performance is realized. It confirmed that BI and BPM initiatives should be aligned in order to give BI a business value.
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Mojca Indihar Štemberger, Vesna Bosilj Vuksic, Frank Morelli and Jurij Jaklič
Although improving customer experience (CX) has always been one of the top priorities of business process management (BPM), the evidence on the actual contribution made by…
Abstract
Purpose
Although improving customer experience (CX) has always been one of the top priorities of business process management (BPM), the evidence on the actual contribution made by traditional BPM to improving CX and customer experience management (CXM) is mixed. Recently, new and enhanced capability areas have been added to the traditional BPM frameworks, yet it is unclear which of them contribute to CXM. Moreover, it is not known which of them are necessary and which are sufficient conditions. The aim of this research is to shed light on the research gap concerning which BPM capabilities, especially new and enhanced ones, are relevant to CXM.
Design/methodology/approach
Quantitative data from 268 medium and large companies in 3 EU countries were analysed using hierarchical linear regression analysis and necessary condition analysis.
Findings
The results show that traditional BPM capabilities are a necessary condition for CXM, but with minor significance. Most highly significant necessary conditions and also most highly or medium significant sufficient conditions belong to the People or Culture area. Agile Process Improvement is the only new or enhanced BPM capability area in the Methods/IT area that is a necessary and also a sufficient condition for CXM maturity. Advanced Process Digitalisation was identified as neither a significant necessary nor a sufficient condition for CXM.
Originality/value
This research contributes to better understanding of the role played by BPM for CXM, where previous research provides mixed results.
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Anton Manfreda, Brina Buh and Mojca Indihar Štemberger
There is very little literature about improving and managing knowledge-intensive business processes (KIBPs). Since innovation plays an important role in knowledge work, these…
Abstract
Purpose
There is very little literature about improving and managing knowledge-intensive business processes (KIBPs). Since innovation plays an important role in knowledge work, these processes are different from traditional business processes, for which most business process management (BPM) methods have been developed, and therefore KIBPs should be improved differently. The purpose of this paper is to contribute to the understanding of BPM in the case of KIBPs by describing some methods that can be applied to manage and improve KIBPs.
Design/methodology/approach
The paper presents a case study of a BPM project in the public sector, where most processes are knowledge-intensive. In conducting the longitudinal case study, established guidelines for interpretive case study research were followed. Both qualitative and quantitative data were collected.
Findings
The paper presents some findings about the methods that can be applied for BPM in the case of KIBPs. It shows that the main phases of a BPM project can be the same as in a typical project; however, within each project phase different methods have to be applied. Appropriate methods for modelling the existing processes were workshops and interviews. Qualitative methods were suitable for the analysis phase, while it was not necessary to develop detailed to-be models in the business process redesign phase.
Originality/value
The paper contributes to the body of knowledge on BPM in the case of KIBPs. Previous findings from the literature claiming that participative, incremental and continuous methods are suitable for improving KIBPs were confirmed. The case study also showed that proper project management, communication, the active role of top management and the involvement of external consultants during BPM projects are very important.
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Tomislav Hernaus, Vesna Bosilj Vuksic and Mojca Indihar Štemberger
The purpose of this paper is to examine how business process management (BPM) is incorporated within organisational structure. The authors demonstrate how a strategic interest in…
Abstract
Purpose
The purpose of this paper is to examine how business process management (BPM) is incorporated within organisational structure. The authors demonstrate how a strategic interest in BPM and formal responsibilities for BPM activities shape the efficiency, quality and agility of BPM initiatives. By conducting field research, useful empirical insights were drawn about the necessary conditions for ensuring the success of BPM initiatives.
Design/methodology/approach
A questionnaire survey of BPM adoption practices was conducted among private- and public-sector organisations with more than 50 employees. A cross-national sample of 60 Croatian and 51 Slovenian companies is analysed by applying a subsampling strategy and using inferential statistics methods.
Findings
The study clearly shows how particular structural decisions can foster the operational excellence of BPM initiatives. Formal process roles and specialised BPM units were recognised as important drivers of organisational success. In addition, how strategic support and related structural choices create a synergistic effect and make process efforts worthwhile is explained.
Practical implications
The research findings offer useful benchmarking of current BPM practices. The developed BPM commitment matrix represents a simple tool for self-assessment. Its path-dependent logic provides guidelines for improving the outcomes of BPM governance in general, and BPM initiatives specifically.
Originality/value
The paper extends previous research by showing the performance effects of several BPM governance practices. The results clearly suggest that the best outcomes of BPM initiatives were achieved by organisations that had introduced a strategic approach to BPM, along with having defined a centralised BPM responsibility and assigned decentralised process ownership roles.
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Tatjana Stanovcic, Sanja Pekovic and Amira Bouziri
The purpose of this paper is to analyze whether knowledge management (KM) practices trigger environmental innovation. Additionally, distinguishing between two types of KM…
Abstract
Purpose
The purpose of this paper is to analyze whether knowledge management (KM) practices trigger environmental innovation. Additionally, distinguishing between two types of KM practices, the authors want to examine whether different types of KM practices have the same role for environmental innovation.
Design/methodology/approach
Employing two French surveys, namely, the Community Innovation Survey (2002-2004 and 2006-2008) and Annual Firm Survey (EAE, 2000), the authors analyze empirically the relationship between KM practices and environmental innovation. The theoretical relationship the authors propose is tested using bivariate probit model on 1,117 French manufacturing firms.
Findings
The econometric estimations show that the investment in KM practices trigger environmental innovation. Furthermore, the authors distinguish between two types of KM practices: a written policy of KM and a culture intended to promote KM sharing. The main results are also confirmed for both types of KM practices. Moreover, based on coefficients and significance levels, the empirical results indicate that a culture intended to promote KM sharing has a more substantial impact on green innovation than a written policy of KM.
Practical implications
KM can boost environmental innovation, which also enhances firm business performance. Therefore, managers should foster investment in KM capabilities. They need to create working atmosphere that generates, stores, transfers and applies knowledge in order to improve a firm’s green innovativeness. Additionally, the study results show that managers can choose among different KM practices in order to enhance environmental innovation. However, managers should be aware that not all KM practices provide the full advantage in terms of performance improvement. They should know that different KM practices have differential impacts on different performance outcomes. In this sense, managers should implement KM practices that fit their performance strategy.
Originality/value
The relationship between KM and innovation performance has received increasing attention from researchers during the past years. However, even though scholars underline the importance of environmental innovation, the relationship between KM and environmental innovation remains significantly under-researched. The findings suggest that KM should be considered as an important source for environmental innovation improvement.
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Kevin McCormack, Jurgen Willems, Joachim van den Bergh, Dirk Deschoolmeester, Peter Willaert, Mojca Indihar Štemberger, Rok Škrinjar, Peter Trkman, Marcelo Bronzo Ladeira, Marcos Paulo Valadares de Oliveira, Vesna Bosilj Vuksic and Nikola Vlahovic
The purpose of this paper is to report on the results of research into the precedence of the maturity factors, or key turning points in business process maturity (BPM…
Abstract
Purpose
The purpose of this paper is to report on the results of research into the precedence of the maturity factors, or key turning points in business process maturity (BPM) implementation efforts. A key turning point is a component of BPM that stabilizes within an organization and leads to the next maturity level.
Design/methodology/approach
Several years of data from over 1,000 companies in the USA, Europe, China, and Brazil that have completed a BPM assessment are analyzed to identify which components of BPM stabilize, when and in what order. Different analysis methods are employed in order to identify global commonalities and differences.
Findings
The paper identifies key turning points from several different perspectives using several different approaches and develops some conclusions common to all methods used in this research.
Research limitations/implications
The relationship between the components (dependencies) is only suggested but not statistically analyzed. Several data sets are also on the low end of sample size for the methods used and some parts of the research used ad hoc selection of companies of arbitrarily distributed companies into different groups.
Practical implications
The results can be useful for leaders and teams that are attempting the journey to process maturity. The guide‐posts, milestones, and measures can help answer the question “Where am I on this journey and what is next?”
Originality/value
A plethora of maturity models has emerged that claim to guide an organization through the process of building levels of maturity that lead to competitive advantage. To date, there has been a lack of quantitative studies documenting these road‐maps. The paper provides global, quantitative evidence of the critical maturity components associated at each level of maturity.
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Rok Škrinjar, Vesna Bosilj‐Vukšić and Mojca Indihar‐Štemberger
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…
Abstract
Purpose
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.
Design/methodology/approach
Empirical investigation combined an exploratory‐confirmatory approach using factor analysis and structural equation modeling.
Findings
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.
Practical implications
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.
Originality/value
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.
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The purpose of this paper is to explore how organizational leadership capability as a knowledge coordinating mechanism affects service organization activities towards different…
Abstract
Purpose
The purpose of this paper is to explore how organizational leadership capability as a knowledge coordinating mechanism affects service organization activities towards different stakeholder groups.
Design/methodology/approach
The subjects in the case study are four Estonian service companies from the banking and retail industry providing high- and low-skill services, respectively. The data for the study were collected using the Organizational Leadership Capability Questionnaire with a total of 375 employees as respondents, and the organizations’ web sites to analyse corporate social responsibility (CSR). Assessment and analysis of the data included: the measurement of organizational leadership capability; the measurement of CSR communication; and analysis of the results gained from studying issues pertaining to organizational leadership capability as a knowledge coordination mechanism and innovative behaviour in terms of CSR.
Findings
Ultimately, the study reveals that organizations with higher intensity of knowledge use in high-skill service industries have greater ability to coordinate knowledge as expressed in terms of organizational leadership capability, which in turn, allows them to behave more innovatively in terms of CSR towards stakeholders.
Research limitations/implications
This study suggests that innovative behaviour in organizations towards different groups of stakeholders depends on organizational leadership capability. However, the results of this study are only valid in the context of the Estonia service sector, and more precisely the retail and banking industry.
Originality/value
This paper demonstrates the role of organizational leadership capability in the coordination of knowledge to generate innovative behaviour in terms of CSR in service organizations.
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Dejana Zlatanović and Matjaž Mulej
Respecting the growing importance of interdependence of knowledge, values and social responsibility, the purpose of this paper is to introduce the concept of knowledge-cum-values…
Abstract
Purpose
Respecting the growing importance of interdependence of knowledge, values and social responsibility, the purpose of this paper is to introduce the concept of knowledge-cum-values management and to show how some soft systems approaches can support interdependence of knowledge and human values resulting in socially responsible innovative behavior, hence in success.
Design/methodology/approach
The selected soft systems approaches are used to double-check the usefulness of the requisitely holistic approach to knowledge-cum-values management and innovation. The applied methodology for qualitative analysis is the Dialectical Systems Theory.
Findings
One-sidedness, unlike the requisite holism, causes oversights and hence disables innovations as a new users’ benefit. Requisitely holistic knowledge-cum-values management prevents one-sidedness and therefore many oversights; hence it is a valuable driver of innovation. It is supported by social responsibility (exposing the systemic behavior by suggesting interdependence and holistic approach to one’s responsibility for one’s influences on society). By including values and by enabling consideration of interdependence of human values and knowledge, some soft systems approaches support innovative behavior with social responsibility.
Research limitations/implications
Research is limited to theoretical findings resulting from authors’ previous empirical studies. The novel concept “knowledge-cum-values” erases the human dangerous one-sidedness resulting from the irrational rationalistic division of the two. Social responsibility supports informal use of some soft systems theories and diminishes this danger.
Practical implications
The practical application of the selected soft systems approaches and social responsibility offers great possibilities for managers to improve the holism of their innovation processes, driven by knowledge-cum-values management. Fewer oversights are possible and lead to fewer mistakes and more success in the invention-innovation-diffusion processes. No human is rational or emotional only, either as a creator or as a consumer, but this fact is disregarded in the management literature.
Social implications
Social responsibility shall be considered as an important novel soft-system approach and part of organizational innovative behavior aimed to replace the one-sided approaches prevailing so far and causing crises: the overseen attributes do not cease, but they still impact life and are out of control.
Originality/value
The contribution introduces the new, still insufficiently researched concept of knowledge-cum-values management; it highlights new ways of attaining the requisitely holistic knowledge-cum-values management that enhances enterprise’s innovation capacity by requisite holism, supported by social responsibility.