A learning path of process capital development - A case study of an IC distributor

Abstract

Process capital is the capability a firm develops to generate lasting value with investments in process management. Business processes management today is an environment full of business and technology changes. Identifying the required resources and selecting a suitable strategy to reduce the resource gap has become a critical part of process management. In this study we test the application of three theories of management towards process change at an IC distributor. The three theories underline the formation of business capabilities in managing process investments. The three theories, system-determined, people-determined and interaction theories, were gradually adapted by the firm and enabled the evolving of a dynamic capability in reacting to the changing environment. The objective of this case study is to contribute to the development of theory on process capital. The case evidence reveals that through the process of organizational learning by both business users and process designers a firm can build dynamic capability in managing changeable business processes and it can evolve with people, technology and organizational interactions, managed in concert. This capability of managing processes, in the competitive environment, is the process capital that generates value and sustains competitive advantage.