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Ana Tkalac Verčič, Dubravka Sinčić Ćorić and Nina Pološki Vokić
The study examines the psychometric properties of internal communication satisfaction questionnaire (ICSQ), an instrument originally developed in Croatian. A need for a…
Abstract
Purpose
The study examines the psychometric properties of internal communication satisfaction questionnaire (ICSQ), an instrument originally developed in Croatian. A need for a contemporary instrument validated among a non-English-speaking population of employees who use English as their second language motivated the authors to translate the scale.
Design/methodology/approach
ICSQ was validated on a sample of 507 employees of a large Croatian subsidiary of a multinational bank, where English is the official corporate language.
Findings
ICSQ displayed satisfactory levels of psychometric properties, retaining the psychometric properties of the original version of the instrument. A confirmatory factor analysis revealed the acceptable model–data fit of the eight-factor model. Additionally, findings supported the reliability and construct validity of the English version of the instrument. Good internal consistencies of all eight internal communication satisfaction (ICS) dimensions and the total ICSQ and an adequate level of scale homogeneity according to the inter-item and inter-total correlations were found.
Research limitations/implications
In order to generalize the study’s results to other business areas and industries, the study should be replicated in other contexts. Additionally, construct validity was tested by applying cross-sectional design, and therefore, no conclusion can be drawn on the causal direction of the relationship. Finally, the discriminant validity of ICSQ was not tested and should be examined in future studies.
Practical implications
The resulting 32-item instrument, in English, can be used for empirical and practical purposes in improving internal communication.
Originality/value
The study confirms that internal communication is a multidimensional construct and should be measured as such.
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This paper aims to examine the relationship between business process management (BPM) and company performance. The research focuses on the instrumental aspect of core business…
Abstract
Purpose
This paper aims to examine the relationship between business process management (BPM) and company performance. The research focuses on the instrumental aspect of core business processes and its controlling activities in small and medium-sized companies (SMEs) to identify the relationship to company performance.
Design/methodology/approach
The results presented in this paper are based on a survey of Slovene SMEs. A questionnaire was distributed to 3007 SMEs via e-mail and a response rate of 5.42% was achieved. The financial data of companies over a six year period as derived from the publicly available financial reports of SMEs along with an industry-specific financial risk measure and other financial data were used for the company risk-adjusted performance measures of relative residual income (ROE-r) and risk-adjusted ROE (ROE-a) calculation.
Findings
The results show that instrumental aspects of core business process controlling activities are related to risk-adjusted company performance measures ROE-r and ROE-a. Companies with lower ROE-r and ROE-a have been perceived to be more focused on the instrumental aspect of BPM. Presumably due to the small sample, the results of a non-parametric Mann–Whitney U test did not statistically confirm the developed hypothesis: “the instrumental aspect of controlling as a core process management activity has a statistically significant impact on company risk-adjusted performance measures such as ROE-r and ROE-a.” Despite this, the results show a possible negative correlation between risk-adjusted performance measures and BPM, which opens possibilities for further research.
Research limitations/implications
The main limitation of the purposed study model is that the paper have studied only control activities of core business processes and relate it to company risk-adjusted performance measures. The study has been limited by the SME sample and the use of a survey as a research instrument. An additional limitation of the research is the degree of reliability implied by the assumptions of the models used to estimate the required return on equity and risk. Results concern investors, managers and practitioners to start BPM improvement initiatives, to set BPM priority measures and to set priority management decisions and further actions.
Originality/value
This paper presents the unique findings from an investigation of the instrumental aspects of BPM practices and their relationship to company risk-adjusted performance measures in SMEs. This paper developed a measurement instrument for measuring the instrumental aspects of BPM use. An additional original contribution is the use of company risk-adjusted performance measures such as ROE-r and ROE-a, which take into account the required profitability of companies in different industries according to the risk and allows comparable results of companies from different industries. The approach is innovative and interesting as regards researching the factors that affect the profitability of companies that operate in different industries.
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