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Unformatted text preview: Business Process Management as Competitive Advantage: a Review and Empirical Study RICHARD YU-YUAN HUNG Department of International Business, Toko University, Chia-Yi, Taiwan A BSTRACT From a process perspective, Business Process Management is regarded as a best practice management principle to help companies sustain competitive advantage. This paper reviews and examines the key concepts of Business Process Management and its effects on organizational performance. Process Alignment and People Involvement are two key concepts for successful implementation of Business Process Management. The purpose of this paper is to discuss how these two constructs affect organizational performance. A questionnaire was used to collect data; resulting in useful insights into the field of Business Process Management. This research contributes to a better understanding of the field of Business Process Management. The findings provide in-depth interpretation of previous studies regarding the relationship between the effects of alignment on organizational effectiveness. The results present evidence that Process Alignment and People Involvement are positively associated with organizational performance. Through regression analysis, we also confirmed that Process Alignment is a mediator that contributes to People Involvement and on Organizational Performance. K EY W ORDS : Business Process Management, competitive advantage, process alignment, people involvement Introduction In order to sustain a competitive advantage and so face the rapidly increasing global com- petition, companies must continuously implement best practice management principles, strategies and technologies (Carpinetti et al ., 2003). Business Process Management (BPM) is a best practice management principle that helps companies sustain competitive advantage (Kilmann, 1995). From a process improvement perspective, BPM has become an important topic in the language of many organizations (Pritchard & Armistead, 1999). Increasingly, research has focused on developing concepts within BPM and in identifying the operational and strategic importance of business processes (Elzinga et al ., 1995; Total Quality Management Vol. 17, No. 1, 2140, January 2006 Correspondence Address : Richard Y. Hung, Toko University, Department of International Business, No. 51 Sec. 2, University Road, Pu-Tzu City, Chia-Yi County 613, Taiwan. E-mail: email@example.com 1478-3363 Print = 1478-3371 Online = 06 = 01002120 # 2006 Taylor & Francis DOI: 10.1080 = 14783360500249836 Hammer, 1996; Zairi, 1997). As concepts within BPM, the alignment of business operations with strategic priorities is seen as core to competitiveness. Moreover, the importance of peoples involvement, as an underlying concept, also plays an important role in the quest for long-term competitiveness....
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