Business Process Management and Organizational Culture in Big Companies: Cross-Country Analysis

Authors: Dalia Suša Vugec

Abstract:

Business process management (BPM) is widely used approach focused on designing, mapping, changing, managing and analyzing business processes of an organization, which eventually leads to better performance and derives many other benefits. Since every organization strives to improve its performance in order to be sustainable and to remain competitive on the market in long-term period, numerous organizations are nowadays adopting and implementing BPM. However, not all organizations are equally successful in that. One of the ways of measuring BPM success is by measuring its maturity by calculating Process Performance Index (PPI) using ten BPM success factors. Still, although BPM is a holistic concept, organizational culture is not taken into consideration in calculating PPI. Hence, aim of this paper is twofold; first, it aims to explore and analyze the current state of BPM success factors within the big organizations from Slovenia, Croatia, and Austria and second, it aims to analyze the structure of organizational culture within the observed companies, focusing on the link with BPM success factors as well. The presented study is based on the results of the questionnaire conducted as the part of the PROSPER project (IP-2014-09-3729) and financed by Croatian Science Foundation. The results of the questionnaire reveal differences in the achieved levels of BPM success factors and therefore BPM maturity in total between the three observed countries. Moreover, the structure of organizational culture across three countries also differs. This paper discusses the revealed differences between countries as well as the link between organizational culture and BPM success factors.

Keywords: Business process management, BPM maturity, BPM success factors, organizational culture, process performance index.

Digital Object Identifier (DOI): doi.org/10.5281/zenodo.2643862

References:

[1] R. Škrinjar, V. Bosilj Vukšić and M. Indihar‐Štemberger, “The impact of business process orientation on financial and non‐financial performance,” Business Process Management Journal, vol. 14, no. 5, pp. 738 – 754, 2008.
[2] T. Hernaus, M. Pejić Bach and V. Bosilj Vukšić, “Influence of strategic approach to BPM on financial and non-financial performance,” Baltic Journal of Managment, vol. 7, no. 4, pp. 376-396, 2012.
[3] B. Buh, Approaches towards business process management adoption under different organizational cultures, doctoral dissertation. Ljubljana, Slovenia: Faculty of Economics, 2016.
[4] B. Hribar, and J. Mendling, “The correlation of organizational culture and success of BPM adoption,” in: Proceedings of the European Conference on Information Systems (ECIS), 2014, Tel Aviv, Israel, June 9-11, 2014.
[5] V. Bosilj Vukšić, D. Suša Vugec, and A. Lovrić, “Social Business Process Management: Croatian IT Company Case Study,” Business Systems Research Journal, vol. 8, no. 1, pp. 60-70, 2017.
[6] V. Bosilj Vukšić, M. Indihar Štemberger, and D. Suša Vugec, “Insights into BPM Maturity in Croatian and Slovenian Companies,” in 40th International Convention on Information and Communication Technology, Electronics and Microelectronics, P. Biljanović, Ed. Rijeka: MIPRO, pp. 1623-1628, 2017.
[7] R. Schmidt, and S. Nurcan, “BPM and social software,” In: Business Process Management Workshops, Berlin Heidelberg: Springer, pp. 649-658, 2009.
[8] G. Bruno, F. Dengler, B. Jennings, R. Khalaf, S. Nurcan, M. Prilla, M. Sarini, R. Schmidt, and R. Silva, “Key challenges for enabling agile BPM with social software,” Journal of Software Maintenance and Evolution: Research and Practice, vol. 23, no. 4, pp. 297-326, 2011.
[9] S. Erol, M. Granitzer, S. Happ, S. Jantunen, B. Jennings, P. Johannesson, A. Koschmider, S. Nurcan, D. Rossi, and R. Schmidt, “Combining BPM and social software: contradiction or chance?,” Journal of software maintenance and evolution: research and practice, vol. 22, no. 6/7, pp. 449-476, 2010.
[10] P. Harmon, Business Process Change: A Guide for Business Managers and BPM and Six Sigma Professionals. Waltham: Morgan Kaufmann Publishers, July 2007.
[11] W. M. P. van der Aalst, A. H. M. ter Hofstede, and M. Weske, “Business Process Management: A Survey,” in Business Process Management: International Conference Proceedings, W. M. P. van der Aalst, and A. H. M. ter Hofstede, Eds., Eindhoven, Netherlands, June 26–27, Berlin: Springer, 2003, pp- 1-12.
[12] F. G. de Boer, C. J. Müller, and C. S. ten Caten, “Assessment model for organizational business process maturity with a focus on BPM governance practices,” Business Process Management Journal, vol. 21, no. 4, pp. 908-927, 2015.
[13] D. R. Shaw, C. P. Holland, P. Kawalek, B. Snowdon, and B. Warboys, “Elements of business process management system: theory and practice,” Business Process Management Journal, vol. 13, no. 1, pp. 91–107, 2007.
[14] J. vom Brocke, T. Schmiedel, J. C. Recker, P. Trkman, W. Mertens, and S. Viaene, “Ten principles of good business process management,” Business Process Management Journal, vol. 20, no. 4, pp. 530-548, 2014.
[15] C. Grau, and J. Moormann, “Investigating the Relationship between Process Management and Organizatinal Culture: Literature Review and Research Agenga,” Management and Organizational Studies, vol.1, no.2, pp. 1-17, 2014.
[16] R. K. L. Ko, S. S. G. Lee, and E. W. Lee, “Business process management (BPM) standards: a survey,” Business Process Management Journal, vol. 15, no. 5 pp. 744 – 791, 2009.
[17] T. Schmiedel, J. vom Brocke, and J. Recker, “Which cultural values matter to business process management? Results from a global Delphi study,” Business Process Management Journal, vol. 19, no. 2, pp. 292-317, 2013.
[18] M. Hammer, “What is business process management?”, in Handbook on Business Process Management: Introduction, Methods and Information Systems, J. vom Brocke, and M. Rosemann, Eds., Berlin: Springer, 2010, pp. 3-16.
[19] R. Y. Y. Hung, “Business process management as competitive advantage: a review and empirical study,” Total Quality Management and Business Excellence, vol. 17, no. 1, pp. 21-40, 2006.
[20] M. Röglinger, J. Pöppelbuß, and J. Becker, “Maturity models in business process management,” Business Process Management Journal, vol. 18, no. 2, pp. 328-346, 2012.
[21] P. Harmon, Process maturity models, available at: www.bptrends.com/publicationfiles/spotlight_051909.pdf, 2009, Accessed on 21/07/2018.
[22] A. Tarhan, O. Turetken, and H. A. Reijers, “Business process maturity models: a systematic literature review,” Information and Software Technology, vol. 75, pp. 122-134, 2016.
[23] Rummler-Brache Group, Business process management in US firms today, available at: http://rummler-brache.com/upload/files/PPI_Research_Results.pdf, 2004, Accessed on 21/07/2018.
[24] V. Bosilj Vukšić, Business Process Management Maturity in Croatian Companies, CBPIM 2016: 18th International Conference on Business Process Integration and Management, July 11-12, 2016, Stockholm, Sweden, July 2016, pp. 696-701.
[25] E. H. Schein, Organizational Culture and Leadership, 3rd ed., San Francisco, CA, USA: Jossey-Bass, 2004.
[26] G. Hofstede, G. J. Hofstede, and M. Minkov, Cultures and Organizations, Software of the Mind, 3rd ed., New York, NY, USA: McGraw – Hill, 2010.
[27] Economic lexicon, Organizational culture, 2nd ed., Zagreb, Croatia: Leksikografski zavod Miroslav Krleža & Masmedia, 2011.
[28] D. Suša, V. Bosilj Vukšić, D. Ivandić Vidović, “A Role of Organizational Culture in Business Process Management: A Case Study,” in Proceedings of the 8th International Conference “An Enterprise Odyssey: Saving the Sinking Ship Through Human Capital”, L. Galetić, I. Načinović Braje, and B. Jaković, Eds., Zagreb, Croatia: Faculty of Economics and Business, 2016, pp. 740-749.
[29] I. Šandrk Nukić, M. Huemann “Organizational culture of the Croatian construction industry,” Engineering, Construction and Architectural Management, vol. 23, no. 2, pp. 237 – 260, 2016.
[30] C. Handy, Understanding Organisations, 4th ed., London, UK: Penguin Books, 1993.
[31] G. Hofstede, Cultures and Organisations: Intercultural Cooperation and Its Importance for Survival: Software of the Mind, London, UK: Profile Books, 2003.
[32] K. S. Cameron, and R. E. Quinn, Diagnosing and changing organizational culture: Based on the competing values framework. Reading, MA, USA: Addison-Wesley, 2006.
[33] R. E. Quinn, Beyond Rational Management, San Francisco, CA, USA: Jossey-Bass, 1988.
[34] R. E. Quinn, and J. Rohrbaugh, “A spatial model of effectiveness criteria: towards a competing values approach to organizational analysis,” Management science, vol. 29, no. 3, pp. 363-377, 1983.
[35] Y. Yang, and J. Hsu, “Organizational process alignment, culture and innovation,” African Journal of Business Management, vol. 4, no. 11, pp. 2231-2240, 2010.
[36] J. C. Nunnally, and I. H. Bernstein, Psychometric Theory, 3rd ed. New York: McGraw-Hill, 1994.