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Business Process Management and Corporate Performance Management: Does Their Alignment Impact Organizational Performance

Author

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  • Dalia Suša Vugec

    (University of Zagreb - Faculty of Economics & Business, Zagreb, Croatia)

  • Lucija Ivancic

    (University of Zagreb - Faculty of Economics & Business, Zagreb, Croatia)

  • Ljubica Milanovic Glavan

    (University of Zagreb - Faculty of Economics & Business, Zagreb, Croatia)

Abstract

Both business process management (BPM) and corporate performance management (CPM) are receiving much attention in academic circles, as well as in business practice. One of the main reasons behind their adoption within organizations is enhancing overall organizational performance (OP). Therefore, this article aims to explore the link between BPM and CPM and how their maturities affect their alignment. Moreover, the article deals with the impact of BPM-CPM alignment to OP. Although there are some studies dealing with empirical confirmation that either BPM or CPM increases OP, to the best of authors' knowledge, none of the studies tries to investigate their combined impact in terms of an alignment empirically. Hence, this article focuses on shedding some light on the importance of BPM-CPM alignment and its connection to OP. A survey has been conducted in medium sized and large organizations operating in Slovenia and Croatia resulting in a total of 159 answers. Observed organizations have been segmented in two clusters, using k-means algorithm: low-performers and high-performers, revealing statistically significant differences between them for all observed variables. Results also indicate that the BPM-CPM alignment increases when both BPM and CPM maturities are higher. Furthermore, OP of the observed organizations has been examined through named two clusters. The Mann-Whitney U test revealed there are statistically significant differences between OP variables among low-performers and high-performance clusters, indicating the relationship of BPM-CPM alignment with OP.

Suggested Citation

  • Dalia Suša Vugec & Lucija Ivancic & Ljubica Milanovic Glavan, 2019. "Business Process Management and Corporate Performance Management: Does Their Alignment Impact Organizational Performance," Interdisciplinary Description of Complex Systems - scientific journal, Croatian Interdisciplinary Society Provider Homepage: http://indecs.eu, vol. 17(2-B), pages 368-384.
    • Handle: RePEc:zna:indecs:v:17:y:2019:i:2-b:p:368-384
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    References listed on IDEAS

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    Cited by:

    1. Alaa M. Ubaid & Fikri T. Dweiri, 2020. "Business process management (BPM): terminologies and methodologies unified," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 11(6), pages 1046-1064, December.

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    More about this item

    Keywords

    business process management; business process orientation; corporate performance management; organizational performance; BPM-CPM alignment;
    All these keywords.

    JEL classification:

    • M15 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - IT Management
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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