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Open Access
Article
Publication date: 31 July 2023

Jingrui Ge, Kristoffer Vandrup Sigsgaard, Bjørn Sørskot Andersen, Niels Henrik Mortensen, Julie Krogh Agergaard and Kasper Barslund Hansen

This paper proposes a progressive, multi-level framework for diagnosing maintenance performance: rapid performance health checks of key performance for different equipment groups…

Abstract

Purpose

This paper proposes a progressive, multi-level framework for diagnosing maintenance performance: rapid performance health checks of key performance for different equipment groups and end-to-end process diagnostics to further locate potential performance issues. A question-based performance evaluation approach is introduced to support the selection and derivation of case-specific indicators based on diagnostic aspects.

Design/methodology/approach

The case research method is used to develop the proposed framework. The generic parts of the framework are built on existing maintenance performance measurement theories through a literature review. In the case study, empirical maintenance data of 196 emergency shutdown valves (ESDVs) are collected over a two-year period to support the development and validation of the proposed approach.

Findings

To improve processes, companies need a separate performance measurement structure. This paper suggests a hierarchical model in four layers (objective, domain, aspect and performance measurement) to facilitate the selection and derivation of indicators, which could potentially reduce management complexity and help prioritize continuous performance improvement. Examples of new indicators are derived from a case study that includes 196 ESDVs at an offshore oil and gas production plant.

Originality/value

Methodological approaches to deriving various performance indicators have rarely been addressed in the maintenance field. The proposed diagnostic framework provides a structured way to identify and locate process performance issues by creating indicators that can bridge generic evaluation aspects and maintenance data. The framework is highly adaptive as data availability functions are used as inputs to generate indicators instead of passively filtering out non-applicable existing indicators.

Details

International Journal of Quality & Reliability Management, vol. 41 no. 2
Type: Research Article
ISSN: 0265-671X

Keywords

Open Access
Article
Publication date: 16 February 2023

Tamilarasu Sinnaiah, Sabrinah Adam and Batiah Mahadi

The purpose of this paper is to present a conceptual framework for integrating strategic thinking factors, organisational performance and the decision-making process.

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Abstract

Purpose

The purpose of this paper is to present a conceptual framework for integrating strategic thinking factors, organisational performance and the decision-making process.

Design/methodology/approach

The methodology involves a synthesis of literature and proposes a framework that explores the relationship between strategic thinking enabling factors, organisational performance and the moderating effect of decision-making styles.

Findings

The framework includes strategic thinking enabling factors (systems perspective, focused intent, intelligent opportunism, thinking in time and hypothesis-driven analysis), organisational performance and the moderating effect of decision-making styles (intuitive and rational).

Research limitations/implications

This research results in a conceptual model only; it remains to be tested in actual practice. The expanded conceptual framework can serve as a basis for future empirical research and provide insights to practitioners into how to strengthen policy development in a strategic planning process.

Originality/value

A paradigm shift in the literature proves that strategic management and decision-making styles are vital in determining organisational performance. This paper highlights the importance of decision-making styles and develops a framework for strategic management by analysing the existing strategic management literature.

Details

Journal of Work-Applied Management, vol. 15 no. 1
Type: Research Article
ISSN: 2205-2062

Keywords

Open Access
Article
Publication date: 11 April 2023

Ester Lisnati Jayadi and Helena Forslund

This study aims to explore how to apply and integrate the performance management (PM) process in humanitarian supply chains (HSCs) among and between humanitarian organizations…

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Abstract

Purpose

This study aims to explore how to apply and integrate the performance management (PM) process in humanitarian supply chains (HSCs) among and between humanitarian organizations (HOs) and donors so as to improve cost-efficiency (CE) and lead-time effectiveness (LTE) in the stage of natural disaster preparedness.

Design/methodology/approach

This study adapts and operationalizes a framework for the PM process used in commercial supply chains to assess HSCs. A multiple-case study with two types of actors – six HOs and three donors—is used to describe the applications of the PM process and analyze the level of integration between the actors.

Findings

The activities in the PM process could sometimes be only vaguely described. Both actors emphasized improving CE, with less emphasis on LTE. Both actors have a low level of integration in each PM process activity, decreasing the CE and LTE. Therefore, guidelines for improving the level of PM process integration are provided.

Research limitations/implications

To the best of the authors’ knowledge, this study is one of the first to combine literature on HSCs and PM process integration, thereby contributing to both literature fields. The concrete contribution of this study is a framework for PM process application and integration among and between HOs and donors.

Practical implications

The PM process framework can be used to assess PM process application, as well as current and increased level of integration, to improve CE and LTE. The current applications can also inspire other HOs and donors.

Originality/value

Previous studies indicate the lack of frameworks in the PM domain of HSCs, especially in the stage of natural disaster preparedness.

Details

Journal of Humanitarian Logistics and Supply Chain Management, vol. 13 no. 3
Type: Research Article
ISSN: 2042-6747

Keywords

Open Access
Article
Publication date: 19 June 2019

Gideon Nkurunziza, John Munene, Joseph Ntayi and Will Kaberuka

The purpose of this paper is to study the relationship between organizational adaptability, institutional leadership and business process reengineering performance using the…

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Abstract

Purpose

The purpose of this paper is to study the relationship between organizational adaptability, institutional leadership and business process reengineering performance using the tested complexity theory in a developing economy setting.

Design/methodology/approach

This study is correlation and cross-sectional and adopts institutional-level data collected via questionnaires from reengineered microfinance institutions in Uganda. Cluster analysis as data mining technique was used to classify cases based on respondents’ opinions into homogeneous clusters. Nvivo was used to understand the perceptions of business process reengineering performance based on qualitative data. The authors used structural equation modeling to derive the predictive model of business process reengineering performance in a developing world setting.

Findings

The authors find that organizational adaptability and institutional leadership are key predictors of business process reengineering performance. Results reveal a predictive model of 61 per cent based on structural equation modeling for the study variables. Cluster analysis as data mining approach explored complex patterns of reengineered business processes.

Research limitations/implications

The use of cluster analysis is susceptible to problems associated with sampling error and absence of fit indices. However, the likelihood of these problems is reduced by the interaction with the data, practical implications and use of smart partial least square to generate structural equations based on derived measurement models of each study variable.

Practical implications

Policymakers of Bank of Uganda, Ministry of Finance and Economic Planning, should develop sound policies in relation to knowledge management, institutional leadership and adaptive mechanisms to enhance business process reengineering performance to take advantage of new knowledge opportunities for the improvement of their businesses.

Social implications

Given the results from structural equations generated, managers need to consider institutional leadership and organizational adaptability as key drivers of business process reengineering performance in microfinance institutions. The results confirm the significant role of institutional leadership, organizational adaptability in determining business process reengineering performance outcomes.

Originality/value

Unlike most of the business process reengineering literature, this study contributes to literature by domesticating and testing complexity theory to explain business process reengineering performance in developing economies.

Details

Innovation & Management Review, vol. 16 no. 2
Type: Research Article
ISSN: 2515-8961

Keywords

Open Access
Article
Publication date: 12 April 2024

Aleš Zebec and Mojca Indihar Štemberger

Although businesses continue to take up artificial intelligence (AI), concerns remain that companies are not realising the full value of their investments. The study aims to…

Abstract

Purpose

Although businesses continue to take up artificial intelligence (AI), concerns remain that companies are not realising the full value of their investments. The study aims to provide insights into how AI creates business value by investigating the mediating role of Business Process Management (BPM) capabilities.

Design/methodology/approach

The integrative model of IT Business Value was contextualised, and structural equation modelling was applied to validate the proposed serial multiple mediation model using a sample of 448 organisations based in the EU.

Findings

The results validate the proposed serial multiple mediation model according to which AI adoption increases organisational performance through decision-making and business process performance. Process automation, organisational learning and process innovation are significant complementary partial mediators, thereby shedding light on how AI creates business value.

Research limitations/implications

In pursuing a complex nomological framework, multiple perspectives on realising business value from AI investments were incorporated. Several moderators presenting complementary organisational resources (e.g. culture, digital maturity, BPM maturity) could be included to identify behaviour in more complex relationships. The ethical and moral issues surrounding AI and its use could also be examined.

Practical implications

The provided insights can help guide organisations towards the most promising AI activities of process automation with AI-enabled decision-making, organisational learning and process innovation to yield business value.

Originality/value

While previous research assumed a moderated relationship, this study extends the growing literature on AI business value by empirically investigating a comprehensive nomological network that links AI adoption to organisational performance in a BPM setting.

Open Access
Article
Publication date: 14 February 2024

Santiago Gutiérrez-Broncano, Jorge Linuesa-Langreo, Mercedes Rubio-Andrés and Miguel Ángel Sastre-Castillo

This article focusses on the hybrid strategy, a simultaneous combination of cost leadership and differentiation strategy. The study aims to examine the impact of hybrid strategy…

Abstract

Purpose

This article focusses on the hybrid strategy, a simultaneous combination of cost leadership and differentiation strategy. The study aims to examine the impact of hybrid strategy on firm performance through its anticipated positive effects on process and product innovation. In addition, we study the moderating role of adaptive capacity in the direct relationships of hybrid strategy with process and product innovation.

Design/methodology/approach

Structural equation modelling was used to analyse 1,842 Spanish firms with fewer than 250 employees. We randomly selected small and medium-sized enterprises (SMEs) operating in Spain from the Spanish Central Business Directory (2021) database. The overall sample design was based on stratified sampling.

Findings

We found that hybrid strategy is positively related to firm performance and to process and product innovation. Additionally, in firms implementing hybrid strategies, process innovation fostered firm performance. Finally, adaptive capacity strengthened the relationships of hybrid strategy with process and product innovation. This sheds light on how and when hybrid strategy is most effective in fostering SME performance.

Practical implications

We highlight that SMEs need to establish strategies that use diverse resources and capabilities and not just generate competitive advantage using one strategy (cost leadership or differentiation strategy). This requires an agile and flexible systems and structures.

Originality/value

Our research provides novel results by proposing the adoption of hybrid strategies instead of pure strategies (cost leadership and differentiation strategy) as a way for SMEs to survive during crises. Unlike “stuck in the middle” strategies, our study demonstrates the importance of hybrid strategies in a comprehensive model that links them to innovation and firm performance, with adaptive capacity being a determining factor.

Details

European Journal of Innovation Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1460-1060

Keywords

Open Access
Article
Publication date: 17 May 2021

Dušan Gošnik and Igor Stubelj

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…

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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.

Open Access
Article
Publication date: 17 December 2019

Marie-Therese Christiansson and Olof Rentzhog

Despite many efforts within organizations toward business process orientation (BPO), research on real-world experiences remains in its infancy. The purpose of this paper is to…

7200

Abstract

Purpose

Despite many efforts within organizations toward business process orientation (BPO), research on real-world experiences remains in its infancy. The purpose of this paper is to redress the existing knowledge gap by analyzing a Swedish public housing company that has made notable effects regarding BPO and to explore lessons learned from the BPO journey (from 1998 to 2013).

Design/methodology/approach

The point of departure is principles in the BPO foundation, principles of successful BPM and effects in empirically based literature. The reconstruction of the narrative case study describes milestones and critical junctions, as well as effects based on quantitative and qualitative data.

Findings

Effects in BPO are demonstrated in terms of higher customer satisfaction, increased innovative ability, improved operational performance, higher employee satisfaction and, as a result of these, increased profitability. Theoretical constructs with implications for the theory building on BPO are suggested in a three-layer management framework – with capabilities and abilities emerging from the case study used as an illustrative example.

Practical implications

Lessons are learned regarding critical practices related to advancement in BPO. A strategy-building process based on eight design propositions is suggested to define the pre-conditions for BPO in an organization.

Originality/value

This is the first longitudinal case study to provide a comprehensive view and detailed insights of a BPO journey and top management performance toward a business process-oriented organization. Practitioners and BPM community get valuable insights into how the temporality and the context shape the BPO maturity process in terms of new organizational structure and roles during the journey.

Details

Business Process Management Journal, vol. 26 no. 2
Type: Research Article
ISSN: 1463-7154

Keywords

Open Access
Article
Publication date: 6 April 2023

Kwabena Abrokwah-Larbi

The purpose of this paper is to investigate the impact of customer-focus on small medium enterprise (SME) performance from the perspective of a resource-based view (RBV).

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Abstract

Purpose

The purpose of this paper is to investigate the impact of customer-focus on small medium enterprise (SME) performance from the perspective of a resource-based view (RBV).

Design/methodology/approach

This research study implemented a survey strategy to gather data from 255 respondents on the registered list of Ghana Enterprise Agency (GEA) in the eastern region of Ghana. Scales used to gather data were operationalized from previous research studies. A structural equation modeling (SEM) path analysis was used to estimate the impact of customer-focus on the performance of SMEs.

Findings

The outcomes of this study indicate that customer-focus has a significant positive impact on SME performance, hence backing the current demand for investigating the distinct influence of customer-focus on SME performance. The results show that customer-focus has a positive and significant relationship with financial performance, customer performance, internal business process performance and learning and growth performance, thus supporting the literature on the positive impact of customer-focus on SME performance. Therefore, customer-focus determinants used in this study, including co-creation, networking ties, customer insight and artificial intelligence marketing (AIM), are critical to the optimization of SME performance.

Research limitations/implications

Notwithstanding the importance of this research study mentioned earlier, the study has limitations. Notably, the sample size of this study can be increased to capture SME respondents in other geographical zones that were not included in this study. Future research studies may address how business environment conditions moderate the relationship between customer focus and performance, and also the cause-effect of the relationship between customer focus and business environment conditions on SME performance.

Practical implications

The practical implications consist of two main items. First, this study empowers SME owners and managers to develop a customer focus technique as a central strategic goal in their quest for SME performance optimization. Second, SME owners and managers should progressively exploit the four determinants of customer focus which include co-creation, networking ties, customer insight and (AIM in order to accrue important resources for effective utilization of their customer focus competences as a way to enhance their performance.

Social implications

This study is targeted at the sound development of SMEs to bring about poverty alleviation and employment. Poverty, unemployment and poor living standards are recognized as vital social challenges in most emerging economies. The establishment of customer focus as an important strategic capability provides opportunities for SME survival, profitability and growth.

Originality/value

Generally, the findings of this research study provide a strong backing to RBV perspective and the proposition that customer-focus and its determinants (i.e. co-creation, networking ties, customer insight and AIM) should be acknowledged as a vital strategic resource for optimizing the performance of SMEs. This research study also provides new knowledge contribution to the present body of knowledge on customer-focus orientation and management literature, particularly in the context of an emerging economy.

Details

African Journal of Economic and Management Studies, vol. 15 no. 1
Type: Research Article
ISSN: 2040-0705

Keywords

Open Access
Article
Publication date: 15 June 2021

Achmad Firdaus

The purpose of the study is twofold: first, it is to develop each aspect of maṣlaḥah ḍarūriyah (essential needs), i.e. dīn (faith/religion), nafs (soul), ʿaql (intellect), naṣl

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Abstract

Purpose

The purpose of the study is twofold: first, it is to develop each aspect of maṣlaḥah ḍarūriyah (essential needs), i.e. dīn (faith/religion), nafs (soul), ʿaql (intellect), naṣl (descendants) and mal (wealth), into various aspects of organisational essential needs; second, it is to formulate maṣlaḥah-based performance measurement.

Design/methodology/approach

The research is an exploratory study that uses a two-stage design: defining the research question and developing the research design. The research question is how each element of maṣlaḥah ḍarūriyah can become an element of organisational essential needs. The research design developed is to formulate maṣlaḥah-based performance measurement.

Findings

The study concludes that maṣlaḥah ḍarūriyah could be developed as a basis for identifying organisational essential needs. The five elements of maṣlaḥah ḍarūriyah are developed into the following organisational essential needs: worship orientation, internal process orientation, talent orientation, learning orientation, customer orientation and wealth orientation. Maṣlaḥah-based performance measurement uses five variables: strategic objective, measure, formula, target and strategic initiatives and applies the modified plan – do – check – action cycle: performance planning, performance implementation, performance evaluation and performance action.

Practical implications

Organisational essential needs can be developed by Islamic financial institutions (IFIs) into performance measurement. IFIs have six essential needs that can be developed into performance variables. Key performance indicators that can be developed for each need are worship orientation (social responsibility, regulatory compliance and Sharīʿah compliance); internal process orientation (innovation process, digital adaptation and employee satisfaction); talent orientation (career development, talent pool, compensation and benefits); learning orientation (training programme, training evaluation and return on training investment); customer orientation (customer engagement, customer satisfaction, customer survey and promotion programme); wealth orientation (profitability, cost-cutting, share prices, dividends, cost efficiency and financial sustainability).

Originality/value

This paper contributes to new knowledge. The study attempts to discuss the organisational essential needs based on the maṣlaḥah ḍarūriyah concept, while previous studies discussed organisational needs based on Maslow’s hierarchy of needs. In developing performance measurement, organisational performance is measured in a balanced manner. According to the concept of maṣlaḥah, not only financial factors but also worship, internal processes, talents, learning and customers define organisational needs. Thus, organisational needs are considered not only in terms of material factors but also in terms of spiritual (worship) factors.

Details

ISRA International Journal of Islamic Finance, vol. 13 no. 2
Type: Research Article
ISSN: 0128-1976

Keywords

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