Business process management (BPM) has emerged as one of the most widely adopted approaches for organizations to managing business processes effectively. However, Indonesian organizations often face significant challenges in implementing and managing BPM. This study aims to evaluate the influence of BPM capabilities on organizational digital innovation in Indonesia.
This study employed a mixed sequential model and had 369 valid respondents who filled in the online questionnaire and 30 respondents who participated in qualitative interviews were conducted. Partial least squares structural equation modeling was used to analyze the questionnaire data, while content analysis was used to analyze the qualitative data.
BPM capabilities such as process context management, process compliance management, process data analytics, process architecture and integration and adaptive process improvement exerted a statistically significant influence on reducing digitalization barriers, thereby enabling organizations to better prepare for and manage the complexities of digital transformation. Advanced process automation did not have a significant effect on reducing organizational digitalization barriers.
The study emphasizes the importance of prioritizing regulatory compliance and data analytics initiatives before adopting advanced process automation, ensuring job security and promoting a more positive acceptance of change throughout an organization.
Strengthening capabilities focused on regulatory compliance and data analytics has proven beneficial in creating a stable and secure work environment, thereby alleviating employees' concerns during digital transformation and encouraging innovation.
