An Analysis of Relationships among Business Process, Organizational Structure, Corporate Culture, and Organizational Effectiveness using Structural Equation Modeling

Abstract

To understand the relationships among organizational characteristics greatly increases the efficiency of business operations. For that reason, many related studies are conducted. Most studies, however, address only the relationships among the organizational characteristics such as structure, culture, and power. The relationships among business process and organizational characteristics have not been researched thoroughly. The organizational characteristics constitute an environment where business process, a collection of structured tasks that make a value, are performed. In this study, the correlations among business process, organizational structure, and corporate culture are analyzed. Also, the impact of each element on organizational effectiveness are explored and both are analyzed by structural equation modeling. The pilot survey asking the leaders of an organization about business process, organizational structure, and corporate culture of their companies are performed. The most appropriate research model is created by analyzing the statistical data from the pilot survey. The results suggest that business process relates with organizational characteristics and effectiveness. Also, an additional factor that have an effect on business process and organizational structure is suggested. This is the first research of analyzing relationships among business process and organizational characteristics. Therefore, the findings indicate theoritical implications for mechanisms of the correlations with the uncovered factor and insights into the relationships among business process, organizational characteristics, and effectiveness.