The Effect Of Business Process Management On Organizational Performance: The Case Of Awash Bank Head Office, Addis Ababa, Ethiopia

Abstract

In today's competitive markets, businesses must adapt to changes and adjust processes to meet regulatory requirements. Banks face challenges in a regulated market, new customer base, and projected revenue. To improve efficiency, banks must adopt business process management to avoid missed opportunities, operational disruptions, and poor workflow management. This study investigates the effect of Business Process Management (BPM) on the organizational performance: the case of Awash Bank's head office in Addis Ababa, Ethiopia. The study adopted both explanatory and descriptive research design, also a quantitative research approach, by utilizing probability sampling method. A structured questionnaire was distributed to 277 employees across different departments at Awash bank head office, and 266 valid responses were collected and analyzed. The findings reveal a statistically significant positive relationship between BPM and organizational performance. Specifically, the study found that BPM dimensions, such as strategic alignment, process improvement, information technology and employees’ involvement, have a substantial effect on overall organizational performance. The study contributes to the existing literature on the relationship between BPM and organizational performance, particularly in the context of the banking industry in a developing economy. The findings offer a foundation for future research and provide practical implications for banks and other service organizations seeking to improve their operational efficiency and overall performance through effective BPM implementation