Development and testing of a business process orientation model to improve employee and organizational performance

This study developed and tested a business process orientation model to improve employee and organizational performance. The research team developed the model on the basis of theoretical background. Factor analysis and structural equation modeling techniques were used to test the model. The research team used a structured questionnaire to collect data from employees of private sector banks in Pakistan using the stratified sampling method. The sample size of the study was 350, with a response rate of 17%. The research team used SPSS 15.0 to check the one-to-one relationship between the variables in the model using the simple linear regression method. Furthermore, the research team used virtual partial least squares (VPLS) 1.04 to test the model on a single run. The findings validated the proposed relationships between the variables in the model. The conclusion of the study was that business process orientation had a significant impact on employee and organizational performance. Thus, a process orientation in business, eliminating inefficiencies and supplementing innovation, was strongly recommended.   Key words: Business process orientation, business process innovation, business process efficiency, employee performance, organizational performance.

[1]  Neil Salkind.  Encyclopedia of Measurement and Statistics , 2006 .

[2]  Michael Pitt,et al.  Performance measurement in facilities management: driving innovation? , 2008 .

[3]  M. Markus,et al.  The Magic Bullet Theory in IT-Enabled Transformation , 1997 .

[4]  Kevin McCormack,et al.  Business Process Orientation: Gaining the E-Business Competitive Advantage , 2001 .

[5]  Liesbeth Opdenacker,et al.  Development and Testing , 2021, Radial Flow Turbocompressors.

[6]  W. Turner,et al.  Occupational stress. , 1992, The New Zealand medical journal.

[7]  J. DeCoster.  Scale Construction Notes , 2005 .

[8]  J. Hair.  Multivariate data analysis , 1972 .

[9]  José Carlos Pinho,et al.  TQM and performance in small medium enterprises: The mediating effect of customer orientation and innovation , 2008 .

[10]  G. Lancaster,et al.  The influence of employee characteristics on market orientation , 2004 .

[11]  Jaroslav Nenadál.  Process performance measurement in manufacturing organizations , 2008 .

[12]  Viswanath Venkatesh,et al.  Gender and age differences in employee decisions about new technology: an extension to the theory of planned behavior , 2005, IEEE Transactions on Engineering Management.

[13]  S. López,et al.  Organizational learning as a determining factor in business performance , 2005 .

[14]  James H. Donnelly,et al.  Fundamentals of Management , 1984 .

[15]  L. Dyer,et al.  Human resource strategies and firm performance: what do we know and where do we need to go? , 1995 .

[16]  L C Yeh Yun,et al.  DOES INNOVATION LEAD TO PERFORMANCE? AN EMPIRICAL STUDY OF SMES IN TAIWAN , 2007 .

[17]  Detmar W. Straub,et al.  Structural Equation Modeling and Regression: Guidelines for Research Practice , 2000, Commun. Assoc. Inf. Syst..

[18]  Muhammad Sajjad,et al.  ACCEPTANCE AND USE OF INFORMATION TECHNOLOGY BY SENIOR EXECUTIVES , 2009 .

[19]  Bernard J. Jaworski,et al.  Market orientation: Antecedents and consequences , 1993 .

[20]  T. Davenport.  Need radical innovation and continuous improvement? Integrate process reengineering and TQM , 1993 .

[21]  Paul A. Pavlou,et al.  Building Effective Online Marketplaces with Institution-Based Trust , 2004, Inf. Syst. Res..

[22]  Jae-Shin Lee,et al.  Technology Acceptance and Social Networking in Distance Learning , 2003, J. Educ. Technol. Soc..

[23]  H. Abdi.  Partial Least Square Regression PLS-Regression , 2007 .

[24]  Ike-Elechi Ogba,et al.  Commitment in the workplace: The impact of income and age on employee commitment in Nigerian banking sector , 2008 .

[25]  Thomas H. Davenport,et al.  Process Innovation: Reengineering Work Through Information Technology , 1992 .

[26]  Anol Bhattacherjee,et al.  Influence Processes for Information Technology Acceptance: An Elaboration Likelihood Model , 2006, MIS Q..

[27]  R. Kaplan,et al.  The Balanced Scorecard: Translating Strategy into Action , 1996 .

[28]  Sidhartha R. Das,et al.  Process innovativeness in technology services organizations: Roles of differentiation strategy, operational autonomy and risk‐taking propensity , 2007 .

[29]  Timothy R. Furey.  A six‐step guide to process reengineering , 1993 .

[30]  N. Baptiste,et al.  Tightening the link between employee wellbeing at work and performance , 2008 .

[31]  Mark Srite,et al.  Culture as an Explanation of Technology Acceptance Differences: An Empirical Investigation of Chinese and US Users , 2006, Australas. J. Inf. Syst..

[32]  G. Hutcheson.  The Multivariate Social Scientist: Introductory Statistics Using Generalized Linear Models , 1999 .

[33]  F. Caeldries.  Reengineering the Corporation: A Manifesto for Business Revolution , 1994 .

[34]  S. Deshmukh,et al.  Strategy development by SMEs for competitiveness: a review , 2008 .

[35]  M. Venkatraman.  It-enabled business transformation: from automation to business scope redefinition , 1994 .

[36]  Kevin McCormack,et al.  The development of a supply chain management process maturity model using the concepts of business process orientation , 2004 .

[37]  Jin K. Han,et al.  Market Orientation and Organizational Performance: Is Innovation a Missing Link? , 1998 .

[38]  Andy Field,et al.  Discovering statistics using SPSS, 2nd ed. , 2005 .

[39]  Modernising work in public services: redefining roles and relationships in Britain's changing workplace , 2007 .

[40]  John P. Meyer,et al.  A three-component conceptualization of organizational commitment , 1991 .

[41]  J. Farley,et al.  Corporate Culture, Customer Orientation, and Innovativeness in Japanese Firms: A Quadrad Analysis , 1993 .

[42]  Aysar Philip Sussan,et al.  STRATEGIC CAPABILITIES OF BUSINESS PROCESS: LOOKING FOR COMPETITIVE ADVANTAGE , 2003 .

[43]  D. T. Kao,et al.  The innovativeness effect of market orientation and learning orientation on business performance , 2008 .

[44]  Peter R. Monge,et al.  Communication and Motivational Predictors of the Dynamics of Organizational Innovation , 1992 .

[45]  Michael Hammer,et al.  Reengineering Work: Don’t Automate, Obliterate , 1990 .

[46]  K. Rehman,et al.  Development and testing of a business process efficiency scale , 2008 .

[47]  K. Alrawi.  Cohesiveness within teamwork: the relationship to performance effectiveness – case study , 2008 .

[48]  Ranjit Kumar,et al.  Research Methodology: A Step-by-Step Guide for Beginners , 1999 .

[49]  Raphael Amit,et al.  The Dynamics of Innovative Activity and Competitive Advantage: The Case of Australian Retail Banking, 1981 to 1995 , 2003, Organ. Sci..

[50]  Pervaiz K. Ahmed,et al.  Structure and structural dimensions for knowledge‐based organizations , 2003 .

[51]  Mohammadali Zolfagharian,et al.  Do consumers discern innovations in service elements , 2008 .

[52]  D. Jiménez-Jiménez,et al.  Fostering innovation: The role of market orientation and organizational learning , 2008 .

[53]  H. Kaiser.  An index of factorial simplicity , 1974 .

[54]  D. Brian Harrison,et al.  A Methodology for reengineering businesses , 1993 .

[55]  Adam P. Vrechopoulos,et al.  Consumer-Retailer Emotional Attachment: Some Antecedents and the Moderating Role of Attachment Anxiety , 2010 .

[56]  Hasan Zarei Matin,et al.  Designing a competent organizational culture model for customer oriented companies , 2009 .

[57]  Sarah Cook.  Process Improvement: A Handbook for Managers , 1995 .

[58]  Kevin McCormack,et al.  Building an enterprise process view using cognitive mapping , 2005, Bus. Process. Manag. J..

[59]  David A. Garvin,et al.  Leveraging processes for strategic advantage , 1995 .

[60]  Mojca Indihar Stemberger,et al.  The impact of business process orientation on financial and non-financial performance , 2008, Bus. Process. Manag. J..

[61]  Paul E. Tesluk,et al.  Examining Employee Involvement in the Context of Participative Work Environments , 1999 .

[62]  Simon Machin,et al.  Leadership team performance management: the case of BELRON , 2008 .

[63]  H. Harrington.  Business process improvement : the breakthrough strategy for total quality, productivity, and competitiveness , 1991 .

[64]  Arthur R. Tenner,et al.  Process Redesign: The Implementation Guide for Managers , 1996 .

[65]  Peter G.W. Keen.  Redesigning the organization through information technology , 1991 .

[66]  A. Smith,et al.  Research Methodology: A Step-by-step Guide for Beginners , 2012 .

[67]  J. Roscoe.  Fundamental Research Statistics for the Behavioral Sciences , 2004 .

[68]  Adamantios Diamantopoulos,et al.  Introducing Lisrel: A Guide for the Uninitiated , 2000 .

[69]  Dana Ginn,et al.  Reducing complexity and working with bottlenecks improves an oil refinery's engineering performance , 1993 .

[70]  Lon Roberts,et al.  Process Reengineering: The Key to Achieving Breakthrough Success , 1994 .

[71]  R. Talwar.  Business re-engineering—a strategy-driven approach , 1993 .

[72]  David A. Griffith,et al.  An Empirical Examination of a Technology Adoption Model for the Context of China , 2006 .

[73]  Thomas M. Hout,et al.  Redesign your organization for time‐based management , 1990 .

[74]  Claudia Ogrean,et al.  Interrelations between competitiveness and responsibility at macro and micro level , 2008 .

[75]  Ajay M Pangarkar,et al.  Strategic alignment: linking your learning strategy to the balanced scorecard , 2008 .

[76]  Kari Uusitalo,et al.  Customer complaints as a source of customer-focused process improvement: A constructive case study , 2008 .

[77]  Business Process Reengineering, the Creation and Implementation of a Methodology 1 Business Process Reengineering, the Creation and Implementation of a Methodology Introduction , 2005 .

[78]  Umit Bititci,et al.  Delivering sustained performance through a structured business process approach to management , 2008 .

[79]  K. Rehman,et al.  Organizational Culture Assessment of Small & Medium-Sized Enterprises , 2006 .

[80]  C. Carmen,et al.  The role of technological and organizational innovation in the relation between market orientation and performance in cultural organizations , 2008 .