While organizations have learned to understand the importance of developing business process management (BPM) capabilities, digitalization now transforms business…
While organizations have learned to understand the importance of developing business process management (BPM) capabilities, digitalization now transforms business processes, and introduces new challenges. Extending prior research examining the value of BPM capabilities in organizations, this study examines the associations of BPM capabilities across direct and indirect digitalization benefits.
Drawing from the capabilities perspective of strategic management, the dynamic versus ordinary classification was used to classify eight BPM capabilities. An empirical investigation of associations between the eight BPM capabilities and 20 digitalization benefits is presented based on data collected from 165 BPM professionals across four continents. Factor analyses were performed to verify the framework measures for BPM capabilities and digitalization benefits. The Kendall's tau-b (τb) correlation coefficient was used to measure the strength and direction of associations.
Overall results confirm positive associations between BPM capabilities and digitalization benefits, but the relationship was less dominant for ordinary BPM capabilities and indirect benefits. Furthermore, relationships between individual BPM capabilities and specific digitalization benefits vary both across and within the categories.
These findings support the moderate capability-based view that puts ordinary and dynamic capabilities on equal footing in dynamic environments, while also providing insight for managers focused on specific outcomes with digitalization efforts.
This study reveals that the strength of associations between BPM capabilities and digitalization benefits varies. This highlights the relevance of ordinary-dynamic and direct-indirect distinctions, and the value of a more fine-grained understanding to better inform practice.
In the 1990s, companies focused on the design and implementation of their internal business processes to overcome functional barriers. The 2000s are about the integration…
In the 1990s, companies focused on the design and implementation of their internal business processes to overcome functional barriers. The 2000s are about the integration between enterprises and inter‐enterprise processes, particularly the improvement of supply chain management and customer relationship processes, The major enabler is the Internet, which has resulted in entire networks of e‐business processes across various organizations. To design and implement those processes efficiently and effectively, more and more organizations use available industry standards in the form of reference models, e.g. the supply chain reference model (SCOR), the RosettaNet Standards, or software reference models. Unclear for many enterprises is how to use those standards. This article describes a comprehensive methodology for the use of reference models, to design and implement inter‐enterprise collaborations within value chain networks. The methodology leads to fast and reliable results in value chain improvement. It increases the performance of the implementation procedure and the resulting business processes.