Are agile organisations more process mature? Business process agility and process maturity as leverage for business performance

Abstract

PurposeThe drive to optimise operations and align them with customer needs is encouraging decision-makers to adopt process approaches. Simultaneously, organisations that improve their processes are beginning to recognize the importance of business process maturity in improving performance. Meanwhile, the dynamics of environmental change provide an incentive to use agility as a mechanism for organisational adaptation. It can be seen that there is a potential conflict between agility and process maturity, as while maturity requires stability, ensuring agility emphasizes variability. Based on studies that combine the concepts of process management and the business performance concept, this paper aims to examine the impact of business process agility on business performance and to assess the impact of business process maturity on this relationship.Design/methodology/approachUsing structural equation modelling and cluster analysis, we analysed data collected from a survey of 300 respondents to understand the relationship between business process agility, process maturity and business performance.FindingsOur study brings to light the role of business process agility in mediating the impact of process maturity on business performance. The results suggest that although process maturity, as a mediating variable between business process agility and business performance, has a noticeable impact on business performance, the strength of this impact is limited. Conversely, the high intrinsic similarity of business process agility and business performance observed in the cluster analysis related to process maturity levels suggests that the component constructs are strongly related.Research limitations/implicationsThe research procedure contains several limitations. The first is the use of a single respondent approach, which can make it difficult to assess an entire organisation in terms of complex issues such as process agility and business performance. The second comes from the nature of quantitative research and the tool used, which is a survey questionnaire. The limitation in this area is the static approach to the relationship between variables, which allows for one iteration of research. Meanwhile, explaining the results requires another study to be conducted, for example, using the case study method, which can lead to a satisfactory saturation of information on a given topic. Another important limitation is the reduction of a broad-scale describing process maturity to the form of a managerial diagnosis, where respondents themselves assess the level of maturity based on the indicated characteristics.Practical implicationsOur findings allow us to draw several conclusions regarding process management. Firstly, our observation that BPA is key to improving PMA indicates that managers aiming to achieve an appropriate level of process maturity should focus on assessing and developing the right capabilities to adapt quickly and effectively to the market environment. This action should be reinforced not only through employee training but also by matching appropriate cultural patterns and employee incentive systems. Secondly, the identified relationship indicating a significant impact of BPA on BP with the mediating role of PMA implies the necessity to orchestrate BPA and PMA in order to achieve BP. This suggests that the level of BPA should be aligned with the PMA at which the organisation is currently operating or aspires to achieve. Too low or too high a level of BPA intensity may be insufficient or unproductive from a process maturity perspective. Therefore, it is recommended that managers identify the PMA level and subsequently develop the capacity to adapt to change and control uncertainty within BPA. Thirdly, the patterns of similarity of the positions identified for BPA and BP in relation to PMA (see Table 7) can provide managers with an indication of which BPA capabilities at particular levels of PMA need to be strengthened and developed in order to achieve specific results in the area of BP.Originality/valueThe research contributes to the development of process management theory by clarifying the role of process maturity as a mediating variable in the relationship between business process agility and business performance. The study confirms that business process agility plays a key role in shaping business performance and that the impact of business process agility on business performance is reinforced by process maturity. This reflects the dynamism and unpredictability of the environment, which translates into the need for companies to evolve towards greater business process agility so as to ensure an appropriate level of business performance.