This article is a brief summary of the paper “The Effects of Process Orientation on Customer Satisfaction, Product Quality and Time-Based Performance” by Kohlbacher M., presented at the 29th Annual International Conference of the Strategic Management Society in Washington D.C., October 2009 (http://dc.strategicmanagement.net). The work focuses on the question whether there is a positive relationship between process orientation and customer satisfaction, product quality, time to market, delivery time and delivery reliability. The paper also investigates whether these relationships depend on firm size or on manufacturing process type (batch/line vs. project/jobbing producers). The study uses a sample of more than 120 Austrian manufacturing companies. The findings indicate that process orientation has a significant positive effect on customer satisfaction, product quality, time to market, delivery time and delivery reliability. Another finding is that firm size does not moderate these relationships. Therefore, process orientation should not be branded as an organizational approach only for large firms as the positive relationship between process orientation and firm performance also holds for medium-sized firms. Neither does the manufacturing process type moderate these relationships, i.e. process orientation leads to better performance not only for batch/line producers, but also for project/jobbing manufacturers. The paper is available here.
The Effects of Process Orientation on Customer Satisfaction, Product Quality and Time-Based Performance
This article is a brief summary of the paper “Process Orientation of Manufacturing Companies” by Kohlbacher M., published in Proceedings of the GBDI Tenth International Conference, Las Vegas, October 2008.
In this paper a model for measuring a firm’s degree of process orientation is introduced. The model measures process orientation by means of ten dimensions (e.g. design and documentation of business processes, process owner, process performance measurement, etc.) and is used for measuring the degree of process orientation of 105 randomly selected Austrian manufacturing firms. With the empirical data collected, it is discussed whether there is a relationship between process orientation, firm size and manufacturing process type (i.e. project, jobbing, batch, and line manufacturing process type).
The paper concludes that the application of business process management is neither a question of firm size nor of manufacturing process type. Furthermore, the paper finds interesting correlations, such as the significant correlation between the process owner role and the application of process performance measurement. This correlation states that organizations with a stronger emphasis on the process owner role also make greater use of process performance measurement. There is also a strong correlation between process performance measurement and the application of process-oriented HR-systems, which means that firms making greater use of process performance measurement also place greater emphasis on process oriented HR systems (such as incentive systems which emphasize the process’ needs).