Business process management and risk-adjusted performance in SMEs

Purpose This paper aims to examine the relationship between business process management (BPM) and company performance. The research focuses on instrumental aspect of core processes its controlling activities in small medium-sized companies (SMEs) identify Design/methodology/approach results presented this are based a survey Slovene SMEs. A questionnaire was distributed 3007 SMEs via e-mail response rate 5.42% achieved. financial data over six year period as derived from publicly available reports along with an industry-specific risk measure other were used for risk-adjusted performance measures relative residual income (ROE- r ) ROE (ROE-a) calculation. Findings show that aspects related ROE- ROE-a. Companies lower ROE-a have been perceived be more focused BPM. Presumably due sample, non-parametric Mann–Whitney U test did not statistically confirm developed hypothesis: “the activity has significant impact such ROE-a.” Despite this, possible negative correlation BPM, which opens possibilities further research. Research limitations/implications main limitation purposed study model is studied only control relate it measures. limited by SME sample use instrument. An additional degree reliability implied assumptions models estimate required return equity risk. Results concern investors, managers practitioners start BPM improvement initiatives, set priority decisions actions. Originality/value presents unique findings investigation practices their measurement instrument measuring use. original contribution ROE-a, take into account profitability different industries according allows comparable industries. approach innovative interesting regards researching factors affect operate