eThesis - Kauppakorkeakoulun sähköiset gradut

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This study investigates firm’s core business processes’ effect on its performance. First, a conceptual model including the three core business processes, product development management, supply chain management and customer relationship management, and performance measures is constructed based on previous research and literature. The conceptual model consists of 16 research hypotheses. Second, empirical evidence is introduced to test the research hypotheses. Finally, the conceptual model is partly verified through the test of hypotheses.

The data used in this study was collected through use of a web-based questionnaire targeted to the upper management in Finnish companies. The questionnaire was sent to 15 941 decision makers, of which 1 157 completed the survey. Three multivariate data analysis techniques were used to address the research questions in empirical part of the study. First, a measurement model was constructed through use of a confirmatory factor analysis to confirm the theoretically proposed factor constructs. Second, a structural equation model was built to test part of the hypotheses. Third, a mediational analysis was conducted to test rest of the research hypotheses.

The findings of this study support the importance of core business process integration. It seems that one core business process directly driving the performance is the customer relationship management. However, both product development management and supply chain management are paramount for overall success of a firm. According to the results of this study the managers should attempt to integrate the firm’s core business processes, by implementing cross-functional integration, customer driven development, and demand supply integration. These actions and implementations should help a firm in the pursuit of financial performance.

The study provides a generalized model that links core business processes and performance. A further study should be made to investigate underlying mechanisms how core business processes affect on performance.