Understanding the value of process capital: a multiple case study on CRM processes

Abstract

This study examined possible ways of measuring process capital and proposed proper ways of reflecting the value of process capital. Using a system model, three methods of measuring organisational processes were identified: (1) measuring the investment in processes, (2) measuring the results of processes and (3) measuring the management capability of the processes. Examining five selected cases from Taiwan`s financial industry, this study applied the Resource-Based View (RBV) with the concept of dynamic capability to enhance the third method, and tested the three kinds of process capital measurements on Customer Relationship Management (CRM) processes. The findings revealed that the management capability of aligning organisational resources with the CRM processes seems to have the strongest correlation with a firm`s competitiveness and the maintenance of sustained customer relationships, suggesting that it should be considered an important indicator of process capital.