Influence of strategic approach to BPM on financial and non‐financial performance

Purpose - The purpose of this paper is to examine the way strategic approach to business process management (BPM) impacts organizational performance, both its financial and non-financial aspects, using empirical data from Croatian firms. The impact of strategic approach to BPM on process performance measurement (PPM) is examined as well. Design/methodology/approach - A questionnaire survey was conducted on a sample of 194 manufacturing and service firms in Croatia and propositions were tested using a structural equation model with SAS software. Findings - The results suggest that PPM practice is positively related to strategic approach to BPM. The impact of PPM on non-financial performance has been found, as well as the impact of non-financial performance on financial performance, thus indicating an indirect influence of PPM on financial performance. Originality/value - The paper extends the previous research that exclusively investigated impact of BPM to organizational performance. The authors extended results of previous research and found that strategic approach to BPM is an important push factor for implementation of PPM, and that PPM is an important link between BPM and improved organizational performance.