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Influence of strategic approach to BPM on financial and non‐financial performance

Tomislav Hernaus (Department of Organization and Management, University of Zagreb, Zagreb, Croatia)
Mirjana Pejić Bach (Department of Informatics, University of Zagreb, Zagreb, Croatia)
Vesna Bosilj Vukšić (Department of Informatics, University of Zagreb, Zagreb, Croatia)

Baltic Journal of Management

ISSN: 1746-5265

Article publication date: 19 October 2012

3438

Abstract

Purpose

The purpose of this paper is to examine the way strategic approach to business process management (BPM) impacts organizational performance, both its financial and non‐financial aspects, using empirical data from Croatian firms. The impact of strategic approach to BPM on process performance measurement (PPM) is examined as well.

Design/methodology/approach

A questionnaire survey was conducted on a sample of 194 manufacturing and service firms in Croatia and propositions were tested using a structural equation model with SAS software.

Findings

The results suggest that PPM practice is positively related to strategic approach to BPM. The impact of PPM on non‐financial performance has been found, as well as the impact of non‐financial performance on financial performance, thus indicating an indirect influence of PPM on financial performance.

Originality/value

The paper extends the previous research that exclusively investigated impact of BPM to organizational performance. The authors extended results of previous research and found that strategic approach to BPM is an important push factor for implementation of PPM, and that PPM is an important link between BPM and improved organizational performance.

Keywords

Citation

Hernaus, T., Pejić Bach, M. and Bosilj Vukšić, V. (2012), "Influence of strategic approach to BPM on financial and non‐financial performance", Baltic Journal of Management, Vol. 7 No. 4, pp. 376-396. https://doi.org/10.1108/17465261211272148

Publisher

:

Emerald Group Publishing Limited

Copyright © 2012, Emerald Group Publishing Limited

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