EXAMINING THE CONNECTION BETWEEN ORGANIZATIONAL PERFORMANCE AND BUSINESS PROCESS ORIENTATION

The new millennium's global marketplace has increased perception of orientation on business processes as the key element of management approach. Business process orientation (BPO), according to business process literature, can help companies in improving their performance. However, empirical studies of this subject are lacking. This study uses actual data from Croatian businesses to investigate how is BPO connected with organizational performance (OP): non-financial and financial. The questionnaire was carried out in 127 Croatian companies and research hypotesis were tested. That was done by using a method of structural equation modeling. The findings imply that non-financial performance is positively influenced by BPO. Additionally, it was proved that non-financial performance has positive effect on financial performance. So, it can be stated that BPO effects financial performace through non-financial performance, indirectly. The connection between BPO on OP is validated in the paper, which is useful for practitioners and academics. The clear non-financial and financial benefits of establishing and using BPO are better understood, and this opens the door to a larger implementation of BPO in everyday business and during time that can guide to their enhancement and future growth.