DEVELOPMENT OF CRITICAL SUCCESS FACTORS IN BUSINESS PROCESS MANAGEMENT (CASE STUDY: CULINARY SMES IN BANDUNG CITY)

• Main Author: Aditya Anggara, Shendy
• Format: Theses
• Language: Indonesia
• Subjects: Teknik (Rekayasa, enjinering dan kegiatan berkaitan)
• Online Access: https://digilib.itb.ac.id/gdl/view/74610
• Institution: Institut Teknologi Bandung

Small, and Medium Enterprises (SMEs) are defined as productive economic activities carried out by individuals or business entities. The contribution of SMEs to the Indonesian economy includes the ability to absorb 97% of the total workforce and gather up to 60.4% of total investment. However, SMEs in Indonesia are still relatively low compared to other ASEAN countries at similar levels of development, particularly in terms of productivity, contribution to exports, value-added contribution, and MSME participation in global transactions. This is due to several resource limitations, including financial, informational, management and technological capacities, as well as access to market information. Fundamentally, both large and small companies have business activities consisting of ongoing processes conducted within the company, commonly referred to as business processes. A good organization is one that has efficient and effective business processes, including organizations like SMEs. Therefore, SMEs are required to maintain a balance between production capacity and actual results, but this balance may be disrupted by rapidly changing markets. Business Process Management (BPM) can be a solution to help manage businesses by emphasizing a management approach to improve business effectiveness and efficiency, leading to innovation and integration with technology. Previous research has attempted to identify the determinants of success, Critical Success Factors (CSFs), in BPM. However, most of these papers failed to position their research within a theoretical framework. Hence, the purpose of this study is to identify critical success factors in each BPM lifecycle phase in MSMEs. A total of 119 data were successfully collected based on homogeneous purposive sampling techniques and processed using exploratory factor analysis to reduce or simplify CSFs in BPM formed in each phase of its lifecycle. The analysis revealed that in the process identification phase, four factors emerged from the indicators of critical success factors in business process management, namely Continuous Performance Monitoring and Evaluation (Methods), Organizational Transformation (Governance), Sustainable Improvement Strategy (Strategic), and Technology Management (Technology). In the process discovery phase, four factors emerged from the indicators of critical success factors in business process management, namely Organizational Transformation (Governance), Technology Management (Technology), Employee Performance Development (People), and Change Management Capability (Culture). In the process analysis phase, three factors emerged from the indicators of critical 3 success factors in business process management, namely Process-Based Performance Improvement (Methods), Performance Management (Governance), and Effective Collaboration (People). In the process development/design phase, five factors emerged from the indicators of critical success factors in business process management, namely Process Adaptability (Methods), Process Innovation (Culture), Effective Collaboration (People), Strategy-Based Process Management (Strategy), and Performance Optimization (Governance). In the process implementation phase, four factors emerged from the indicators of critical success factors in business process management, namely Human Resource Optimization (People), Process Management (Methods), Change and Performance Management (Governance), and Adaptive Technology (Technology). In the process monitoring and control phase, five factors emerged from the indicators of critical success factors in business process management, namely Strategic Alignment (Strategic), Organizational Transformation (Governance), Performance Enhancement (People), Operational Effectiveness (Methods), and Innovation and Development (Culture).