Effect of business process management on firm performance: An ambidexterity perspective

We develop an ambidexterity perspective of process management's influence on organizational adaptation. Drawing upon the idea that dynamic capabilities are process-based competence of firms and are rooted in both exploitative and explorative activities, we argue that business process practices must simultaneous emphasize process efficiency which is beneficial for organizations in stable context and process flexibility which should be pay more attention as environment changes more rapidly. We develop a model to explain how organizational IT capabilities and complementary business process management capabilities will help to build up an ambidextrous state in business process activities.