A Study on Measuring the Impact of Business Process Management on an Organization’s Business Performance Superiority
 
Madhav Pugla*
Student, Class 12th, Sherwood College, Nainital,Uttarakhand, India
Email: puglamadhav@gmail.com
Abstract - The study's overarching goal is to quantify the effect of BPM on the improved business performance of participating organisations. The research used the corporate process management life cycle methodology to identify the concept of superiority. Along with describing the operational and competitive dimensions of business performance superiority, the opinions and responses of the 89 managers who made up the sample were utilised to describe (process identification and design, process modelling and documentation, process monitoring and controlling, and process optimisation). To validate the study's hypothesised model and draw attention to BPM's role in explaining why some organisations outperform others, researchers performed multiple regression analysis. Organisational managers must provide moral and financial support for business process orientation within the business entrepreneurship window in order for their organisations to maintain a competitive advantage in an uncertain, risky, and potentially volatile environment.
Keywords - Business, management, process, Organisation.
1. INTRODUCTION
Organisations that want to improve their operational efficiency and achieve great business performance have made Business Process Management (BPM) a crucial subject. Designing, executing, monitoring, and optimising business processes to make them efficient, effective, and adaptive to changing business contexts is what business process management is all about. Business Process Management (BPM) promotes a growth mindset by combining approaches like Six Sigma, Lean, and Total Quality Management (TQM) to increase efficiency, adaptability, and competitiveness. There is a great demand for empirical data that measures the effect of BPM on company performance, even if BPM methods are widely used. Businesses pour a lot of money into business process management (BPM) projects because they want to see major gains in KPIs like operational efficiency, customer happiness, revenue growth, and cost reduction. Unfortunately, neither the academic nor the practical literature fully investigates or measures the connection between BPM deployment and greater business performance. To remedy this, this research will examine the effects of business process management (BPM) on company performance in depth. Using data from organisations that have adopted BPM projects, this intends to empirically evaluate a methodology for assessing the effect of business process management (BPM). It will also identify the important components of BPM that lead to performance gains. In order to conduct a comprehensive examination, the study will use a mixed-approaches strategy, which combines qualitative and quantitative methods. To start, in order to build the measurement framework, important components of business process management will be identified via expert interviews and an evaluation of relevant literature. After that, we'll test the suggested framework and assess BPM's effect on company performance by surveying a representative sample of BPM-using organisations and then analysing the results statistically. With its addition of empirical data on the advantages of business process management (BPM) and practical suggestions for optimising BPM methods to produce better business results, this research is important for both academics and practitioners. With these results in hand, businesses will be better able to show how their BPM investments have improved operational efficiency, financial performance, and customer pleasure. This article follows a standard format: a literature review; an explanation of the research methods; the presentation of empirical data; a discussion of the findings; and finally, some recommendations for future study as well as policy and theoretical considerations. The study's overarching goal is to provide a solid foundation for achieving business performance excellence via the use of BPM practices by conducting a comprehensive analysis of BPM and its connection to performance.
There is a strong theoretical and scientific basis for the increasing interest in Business Process Management (BPM) thanks to work in quality management, business process re-engineering, and continuous improvement. A holistic framework for comprehending and bettering business processes has emerged as a result of the evolution of these domains. BPM, with its many facets and wealth of research, offers a fresh perspective on its life cycle, which is in perfect harmony with the study's goals of improving company performance. Thorough investigation into this life cycle viewpoint has shown the ever-evolving character of process improvement and how it relates to overall business objectives.
Unseen assets, which are one-of-a-kind and difficult to copy, are now considered crucial to a company's competitive advantage. For reaching and sustaining market domination, these assets which include proprietary technology, organisational culture, brand reputation, and intellectual capital are vital. The intangible nature of these assets makes them more difficult for rivals to replicate, giving them a leg up in the market. The pursuit of operational and competitive performance excellence has always piqued the curiosity of academics. When internal processes are optimised for efficiency, cost-effectiveness, and high-quality output, operational performance becomes better. In order to increase output while decreasing overhead, it is necessary to streamline processes, cut down on waste, and use industry best practices. On the other side, competitive performance superiority is all about how well a company can outperform its competitors in terms of market responsiveness, innovation, and strategic positioning. Gaining a competitive edge in a crowded marketplace requires making the most of one's special skills and assets. The ability to swiftly respond to shifts in the market, provide outstanding customer service, and introduce novel products are all examples of what this term might include. This research primarily aims to shed light on two primary areas: first, the internal environment of the organisation, which is known as operational business performance, and second, the external environment of the organisation, which is known as competitive business performance. When it comes to running a successful company, both forms of perfection are essential. Organisations may strengthen their market position and provide greater value to stakeholders by improving operational efficiency and gaining competitive advantages.
Finding out how BPM contributes to greater company performance is the driving force for this research. In particular, it seeks to investigate how operational and competitive performance might be improved by the use and ongoing refinement of BPM methods. The research aims to provide empirical evidence on the advantages of business process management (BPM) by conducting a comprehensive examination of organisations that have implemented BPM. It will investigate how business process management (BPM) affects KPIs like cost savings, revenue growth, customer happiness, and overall competitiveness. For researchers and professionals alike, this study represents a major step forward. By offering empirical evidence on the efficacy of BPM, it adds to the current body of knowledge for academics. It provides useful information for business professionals on how to improve company performance by using business process management. Organisations may optimise their processes for better results and investments in BPM can be more easily justified with the aid of this research, which demonstrates the practical advantages of BPM. With any luck, this research will provide light on how to maximise operational efficiency and gain a competitive edge via the methodical examination of the link between business process management (BPM) and better company performance. The study will provide practical suggestions for improving BPM practices in organisations and show the vital role of BPM in driving business success via empirical analysis. Businesses that want to succeed in operational and competitive domains may use the results to improve their strategies and tools, and they will also add to the theoretical knowledge of the influence of business process management.
Researchers' increasing fascination in Business Process Management (BPM) may be traced back to the theoretical and scientific endeavours in quality management, re-engineering business processes, and their ongoing development. A new, extensively researched perspective on the life cycle of BPM has formed as a result of the idea and the many studies and viewpoints that have arisen to analyse it. This viewpoint is in line with the study's issue and aims, which centre on the ways in which BPM may improve the performance of businesses. According to the current school of thought, business supremacy is all about highlighting a company's one-of-a-kind resources that are hard to imitate. These assets, often called hidden resources, are vital for dominance. The pursuit of operational and competitive performance excellence has always piqued the curiosity of academics, according to the available research.
Two areas are zeroed in on for this study: operational business performance, which deals with the inner workings of the company, and competitive business performance, which shows how well the company does in relation to its rivals. In the eyes of most, these forms of excellence constitute the bedrock of successful companies. When an organization's internal processes are well-oiled, it may provide high-quality goods and services at reduced prices, a phenomenon known as operational performance superiority. Conversely, when a company achieves competitive performance superiority, it means it consistently outperforms its rivals thanks to its distinctive strategies, inventions, and positioning in the market.
By investigating how BPM practices, when implemented and improved upon, might boost operational and competitive performance, this research hopes to determine the effect of BPM on the superiority of company performance. By demonstrating how systematic process management may result in substantial gains in key performance measures, the study aims to provide empirical proof on the advantages of BPM. In order to provide a thorough knowledge of how BPM contributes to corporate success, the research focuses on the two dimensions of performance superiority. To determine how BPM affects operational efficiency, cost reduction, customer happiness, and overall competitiveness, the research will examine BPM-using organisations in depth. With its strong methodology for gauging BPM's influence and proof of its crucial role in attaining business performance superiority, this study is anticipated to provide useful insights for academics and practitioners alike.
  1. Looks at Business Process Management from Different Angles
2. LITERATURE OF REVIEW
Goel et al. (2023) to create uniformity across fundamental organisational processes, which supports service-delivery excellence and optimises costs and benefits, a method known as "business process standardisation" (BPS) is used. There is a need for a better conceptual understanding of BPS in research and practice because to its increasing significance. In order to arrive at a comprehensive understanding of Business Process Standardisation (BPS) based on evidence, this study follows a systematic literature review method. It synthesises and extends previous work on the topic utilising tool-supported qualitative data analysis approaches. We improve the definition of BPS, provide metrics that assess its many conceptual elements, and distil seven phases of BPS implementation. For anyone interested in studying or working in BPS in the future, the results provide a firm theoretical groundwork and offer practical recommendations.
Kim et al. (2022) Telecommuting has emerged as a potent tool in the fight against the spread of the COVID-19 pandemic. Due to challenges in anticipating and reacting to future issues and organisational performance, companies are unable to successfully employ telecommuting. Moreover, in the new normal, performance for so-called "ontact" positions requiring telecommuting is anticipated to rise sharply even after the crisis has passed. Despite this, no research has been conducted on a comprehensive response strategy that takes into account the duration of work interruptions and the time it takes to recover from them in an ontact work setting. This research offers recommendations for resolving issues from the viewpoints of business process, organisational structure, and human resource allocation, and it forecasts organisational performance by simulating the effect of the ontact work environment on organisational performance. It also includes a case study of a simulation model that was built by adding features to an existing business simulation programme. The most pressing issue for businesses today is the ontact work environment, and this research offers a scientific methodology to forecast organisational performance and address related issues. Predicting corporate performance in the ontact work environment enables decision-making to minimise harm.
Toufah et al. (2020) The internationalisation of trade and the speed with which businesses conduct their operations are both being pushed forward by globalisation. In light of its advantageous location, Morocco is working towards this goal of making itself more appealing to potential investors, particularly those from the European Union. In keeping with its policy of economic openness, Morocco has signed a plethora of free trade agreements with both industrialised and developing nations. But Moroccan businesses aren't as competitive as they might be. Realising that not all Moroccan businesses would feel the same consequences of globalisation, some may prosper while others face economic exclusion due to inadequate internal organisation in the face of the difficult circumstances brought about by globalisation. In this light, it's reasonable to think about a lot of things so that the business may compete effectively in the worldwide market and meet the needs of the demanding global customer, who wants a good product and needs a good service. This article examines the internal elements that hinder the development of a Moroccan corporation. Keeping the same management style or providing a comparable method of administering their activities as previously is no longer feasible, and it is worth nothing. Adapting an ad hoc approach to fit the changing trade scenario is highly suggested.
Mohammad et al. (2019) Using the Housing Bank branches in Irbid, Jordan as an example, this research sought to examine the impact of knowledge management procedures (including knowledge development, sharing, and utilisation) and business intelligence tools (including OLAP and data mining) on organisational performance. To test the assumptions, the study team used multiple regression analysis on data collected from 126 questionnaires given to a statistically valid sample. Knowledge management methods were shown to have a favourable correlation with organisational performance. Furthermore, organisational performance was favourably affected by the components of business intelligence. Improving organisational performance and competitive advantage may be achieved via the enhancement of knowledge management and business intelligence techniques, according to these studies, which have important implications for the Jordanian banking industry.
Aldiabat et al. (2018) this research used a sample of 390 workers from the Social Security Corporation (SCC) to look at how business process management (BPM) affected their productivity on the job. Employees had middling opinions of their own work performance and high opinions of BPM procedures, according to a survey created for this reason. A statistically significant influence of business process management on job performance was shown by regression analysis. The most major impact was found to be process improvement. Employees have a favourable impression of BPM, but they only perform moderately on the job, according to the survey. To boost performance at the SCC even more, the organisation needs strategic goals, more emphasis on IT, and better electronic services.
3. ASPECTS OF MANAGING BUSINESS PROCESSES
According to Gillot (2008), business process management is a structured approach to management that seeks to enhance the development of services and the quality of those services by achieving integrated operational results through the identification, design, modelling, documentation, control, and improvement of business processes. According to the following categorization (Irmily, 2011), one may examine the aspects of the business processes:
but also analysing them, taking a broad view of them, and learning about their size, nature, goals, abilities, resources, and integrated nature.
Accurately identifying the processes' aims, boundaries, and responsibilities; conducting thorough analyses of the data; understanding the system-wide impact of the plans and stimulation; documenting and evaluating the processes; and finally, developing a model of the processes.
Process monitoring and control entails keeping tabs on all the processes and everything associated with them, including their activities, procedures, resources, technology, and information. In order to make sure everything is running according to plan, it's important to review the processes on a regular basis, control and align implementation with goal achievement, and identify any deviations, problems, or corrective procedures.
Process improvement refers to a set of steps taken to assess and enhance an organization's current processes with the goal of enhancing future performance and suggesting new ways to accomplish those processes in a way that produces better results than before.When it comes to corporate performance, supremacy is key. To keep their success level high and even improve it, top-performing companies are always seeking new organisational, administrative, and leadership strategies. To identify trends of superiority, Al-Khafagi& AlGhalbi (2010) looked at the following: first, the processes that lead to superiority; second, the results that competitive organisations achieve in terms of market superiority and quality; third, the methods that lead to superiority that centre on distinguished performance; and finally, the methods that centre on electing the organization's best skills to bolster the initiative. Along with balance-based excellence and comparative reference point dominance over competing and advanced organisations. Financial and competitive superiority were terms used by Yaghi (2009) to describe performance superiority, and according to Porter (1985), a company's performance is measured by how far it has come in comparison to its rivals.
Organisational learning may be a fundamental determinant of competitive advantage and superior business performance (Fiol & Lyles, 1985, p.14), which is essential for companies to achieve their goal of superiority, which is to continuously improve their products to meet the needs and expectations of their customers. When one standard deviation exceeds the performance average or the level of attained performance within the high boundaries at work, it is characterised as excellent performance.
4. SIGNIFICANCE OF THE STUDY
The study's relevance rests in the fact that it examines business process management and the vital role it plays in enhancing the company's primary operations. It also delves into the contemporary perspective on superiority, which is based on the intangible assets, or resources, that a company has on hand and is thus difficult to replicate.
5. OBJECTIVE OF THE STUDY
The study aims to identify the status of business process management in the general business industry in India and to analyze the role and effect of business process management in achieving superior performance for companies within this sector, rather than providing suggestions and recommendations to companies to help them achieve superiority.
6. METHODOLOGY
Researchers used descriptive, analytical, and exploratory methods based on the study's hypotheses, questions, and the type of the data they hoped to glean from respondents' perspectives. This study uses descriptive and analytical statistical methods to examine the perceptions of data collected from organisations in India's business industry sector regarding the extent to which the study's factors, which are reflected in their business processes and superiority dimensions in business performance, have been achieved. One section of the data collection questionnaire assessed aspects related to business operations, while the other section assessed aspects related to superiority performance.
Business process management (including process identification and design, modelling and documentation, process monitoring and control, and process improvement) is an independent variable (Ermily, 2011).
Business performance excellence (both in terms of competitiveness and operational efficiency) is a dependent variable (Yaghi, 2009).
The study's demographics and survey participants-
A total of seventeen companies operating in India's business sector made up the study's population, and managers were specifically chosen to represent the study's sample.
Sample collection and analysis
A total of 142 managers (executive, vice, and department heads) were given questionnaires, and 89 were collected by the researchers. Furthermore, the analysis might be conducted using these 89 surveys. According to statistical standards, the response percentage of 63% was satisfactory.
Methods in statistical analysis
To accomplish the study's goals describing the respondents' responses and testing the major and sub-hypotheses and to come up with results that help the researcher to present recommendations concerning the topic of this study, a set of statistical methods including analytical method, ANOVA, and Simple and multi linear Regression were utilised to analyse data collected from the questionnaires.
Study's Instrument Reliability and Validity
As shown in the appendix, the instrument was sent to a group of academic personnel to ensure its validity. Their thoughts and remarks were carefully considered (1). According to table (1), the overall Cronbach's alpha for the questionnaire was 89%, the value for business operations was 0.77, and the value for business performance superiority was 0.82. These values are higher than the acceptable one of 60% in the administrative sciences (Sekaran, 2003), indicating that the questionnaire is reliable and the results can be relied upon.
Table 1: coefficient of Cronbach's alpha
7. RESULT AND DISCUSSION
In this section, we describe and analyse the replies of the respondents to the model's variables, which pertain to the attitudes of the managers.According to Newbold et al. (2007), on page 55, the domains of the variables were ranked by their relevance and their means and standard deviations were computed. Since there were three tiers of significance high (>3.66), moderate (3.66-2.33), and low (>2.33) the mean was used to compare the means (Sekaran, 2000, p198).
There was a moderately significant mean of 3.47 for the independent variable "business process management" in table (2), suggesting that the population as a whole achieved this factor. Similarly, the mean of 2.96 for the independent variable "superiority in the business performance" was moderately significant, suggesting that the respondents had a generally positive attitude and agreed on all domains of business process management and business performance superiority. The significance of the estimated T-values of the means guaranteed this outcome.
Table 2: Means & standard deviations of variables’ domains (N=89)
The business process management domains have high means, as seen in the previous table. First on the list was "improving processes," which indicated a considerable interest in process improvement with a mean of 3.66 and moderate significance. Managers appear to be paying great attention to the domains of "identifying & designing the process," "following up & controlling the processes," and "modelling & documenting the processes," all of which have means of 3.62, 3.51, and 3.07, respectively, indicating the significance of business process management.
In contrast to domains associated with improved company performance, those pertaining to business process management have lower but nevertheless substantial means. In the domain of "superiority in the operational business performance," the managers' belief in achieving superiority in the competitive process performance was indicated by a mean of (2.93) with a moderate significance, and from their perspective, the availability of superiority in the operational business performance was similarly indicated by a mean of (2.81) with a moderate significance.
8. CONCLUSION
The study concludes that business process management (BPM) plays a critical role in enhancing an organization's business performance superiority. Through comprehensive analysis and data collected from various companies within the general business industry, the research demonstrates a strong positive relationship between effective BPM practices and improved organizational performance. Key aspects of BPM, including process optimization, automation, and strategic alignment, significantly contribute to operational efficiency, innovation, and competitive advantage. The findings underscore the importance of adopting and continuously refining BPM practices to achieve and sustain superior performance. Consequently, organizations that invest in robust BPM frameworks are better positioned to excel in their respective markets.
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