Process management, innovation and efficiency performance: The moderating effect of competitive intensity

Purpose – Much of the practitioner literature touts the universal benefits of process management and its impact on operational performance. However, in academic literature, empirical evidence is mixed. The purpose of this study is to investigate the role of the competitive intensity on the effectiveness of process management. Design/methodology/approach – Survey data from manufacturing plants were collected from through a global research project. Regression analysis was used to test hypotheses. Findings – The influence of process design on efficiency and innovation performance is not dependent on competitive intensity; however, the impact of process improvement and process control on efficiency and innovation performance is in some instances moderated by competitive intensity. Research limitations/implications – The inclusion of competitive intensity as a contingency variable helps to explain the contextual impact of process management on efficiency and innovation. Practical implications – Process management can be an effective tool if the levels of process design, control, and improvement are customized to fit with the competitive environment. Originality/value – This is one of the few studies to empirically examine process management as three core elements. Previous studies utilized a single construct of process management or multiple manufacturing practices such as customer/supplier involvement, statistical quality control, process focus, and cross-functional teams to measure process management. Using this measurement approach demonstrates how process management can influence both efficiency and innovation.