International Journal of Business Process Integration and Management (7 papers in press)

Regular Issues

• Application of a knowledge management system as the supporting factor of success in a rural innovation program  
  by Wilopo Wilopo 
  Abstract: This study aims to test the application of a knowledge management system as the supporting factor of success in a rural innovation program. The study used the Soft System Methodology (SSM) (Checkland and Scholes, 1990). It is a methodology based on systems thinking and system concept dealing only with human activity system (Hardjosoekarto, 2012) which consists of seven stages. Data was collected using literature studies concerning the law, presidential decrees, government regulations, Ministry of Social Affairs Regulation, Regulation of the Ministry of Rural Development and Transmigration (KDPDTT) associated with the Social Space of Knowledge (RSP). An in-depth interview technique was used through Focus Group Discussions (FGD). The Knowledge Management for Rural Innovation program already existed but it is not successful to support good governance. Knowledge management will effectively benefit the learning organisation through knowledge that allows for developing a community group memory to prevent a 'brain drain' as a result of a shift or change in leader/community leaders at the expiration of a program (legacy capture). The originality of this research can be seen from the documentation of practices in community development and empowerment, such as sharing forums regularly, replication innovation of quantity and quality in infrastructure development, local economy, and human resources, and establishment of knowledge management system.
  Keywords: knowledge management; supporting factor; rural innovation program.
  
  
• The effect of corporate governance and risk acceptance criteria on non-performing loans with technology monitoring moderation  
  by Maswar Purnama, Sri Mangesti Rahayu, Muhammad Saifi, Cacik Rut Damayanti 
  Abstract: This study aims to test and analyse corporate governance and risk acceptance criteria as drivers of non-performing loans (NPLs) and test whether there is a moderation effect of technology monitoring in the relationship between these variables. This research is a quantitative research. The data in this study are a combination of primary data obtained through questionnaires and also secondary data obtained from bank credit portfolios. The research took place at the Micro Branch Office of Bank Mandiri in Central Java Region, Indonesia, with the head of the branch office as a sample in this study. The sampling technique used is judgement sampling and data analysis using SEM. The results showed that corporate governance had a positive and significant effect on risk acceptance criteria, corporate governance had a negative and significant effect on NPL, risk acceptance criteria had a negative and not significant effect on NPL, and technology monitoring had a positive and not significant effect in moderating the relationship between corporate governance and risk acceptance criteria for NPLs. The originality of this research lies in testing the effect of corporate governance and risk acceptance criteria on NPLs with the updated technology monitoring as a moderating variable.
  Keywords: non-performing loan; corporate governance; technology monitoring.
  
  
• The effect of transglobal leadership on bank sustainability mediated by militancy, innovation culture and bank performance  
  by Kadarisman Hidayat, Sis Apik 
  Abstract: This research examines the effect of transglobal leadership on militancy, innovation culture, bank performance and bank sustainability. A quantitative approach and data collection using survey methods are used. The population in this study were all regional offices and branch offices of PT. Bank Rakyat Indonesia (Persero) Tbk. The sampling technique uses Stratified Proportional Area Random Sampling (SPARS). The analytical method uses Structural Equation Modelling (SEM). The results show that there was a significant influence between transglobal leadership and militancy, innovation culture, and bank performance. There was a positive and significant relationship of militancy towards innovation culture and bank sustainability. The novelty in this study is to use the militancy and innovation culture variables as a mediating effect of transglobal leadership on bank sustainability.
  Keywords: bank performance; bank sustainability; innovation culture; militancy; transglobal leadership; SEM; BRI; Asia; Indonesia; signalling theory.
  
  
• Flexibility-based selection of paradigms and tools for BP modelling and execution  
  by Asma Mejri, Sonia Ayachi Ghannouchi, Ricardo Martinho 
  Abstract: The last decades have witnessed several changes at the level of the development and the adoption of several business process management approaches, methodologies, tools and paradigms. These latter support all stages of the business process management life-cycle. Owing to the continuous, increasing and rapid changes in the context or environment in which organisations operate, the flexibility of business processes ranks high on the list of priorities of organisations. Hence, organisations must be able to respond promptly and effectively to these changes and unexpected turbulence. This research presents a generic approach for guiding business process engineers to choose paradigms and tools, for modelling and executing their business process, in the sense of taking into account their flexibility requirements. A case study is conducted considering the well-known Scrum framework as a business process for which the approach is applied. Business processes are analysed in terms of flexibility needs, and then our approach guides process engineers on the modelling paradigm and tools they can use accordingly.
  Keywords: flexibility; business process management; paradigms; BPMS; guidance; Scrum framework.
  
  
• The mediating effect of dividend policy on the effect of asset structure on firm value  
  by Sri Mangesti 
  Abstract: This study examines the mediating effect of dividend policy on the effect of asset structure on firm value. The locations of this study were manufacturing companies located or operated in the territory of the Republic of Indonesia and on the Indonesia Stock Exchange in the period 2011-2015. The results show that (1) the asset structure has no significant effect on the dividend policy: this finding indicates that empirically the asset structure is not always or not a determinant of dividend policy in manufacturing companies in Indonesia; (2) dividend policy has a significant effect on firm value: this result supports bird-in-the-hand theory which states that investors feel more secure to earn income as dividend payments rather than waiting for capital gains (Lintner, 1962); (3) the asset structure directly and significantly influences the firm value; however, dividend policy does not mediate the effect of asset structure on firm value. The originality of the research is that there has been no testing about the mediating effect of dividend policy on the effect of asset structure on firm value, and that previous research that examined the effect of asset structure on dividend policy as done by Olakunle and Emmanuel (2014), Harc (2015) and Cekresi (2015) used only one indicator, i.e. fixed asset to total asset (FATA) asset variable, while this research uses two indicators at once for asset structure variable, i.e. current asset to total asset (CATA) and fixed asset to total asset (FATA).
  Keywords: dividend policy; asset structure; firm value.
  
  
• BUSINESS PROCESS MANAGEMENT IN IMPLEMENTATION ORDERING MANAGEMENT SYSTEM IN SUPPLY CHAIN COMPANY  
  by Roy Pisela, Nilo Legowo 
  Abstract: Supply chains are highly complex business process and interconnected structures essential to the success of any company. Quick service restaurants in particular need optimal supply chain performance to ensure they have the right amount of food products and other supplies to support a new product launch, deliver on a promotion or simply provide a great customer experience. The supply chain plays a major role in modern enterprises to gain a competitive advantage in today's business environment. Since the elements of supply chain have been typically separate and independent entities, the main objective of supply chain management is to develop a mechanism to prioritise goals and to coordinate activities for optimal implementation of system. Information is the most significant element of coordination. Information technology can be used to help implement the participation of supply chain elements in the supply chain system. These critical business challenges are driving the need to focus on creating strong business process management in supply chain solution through implementation ordering management system information.
  Keywords: supply chain; quick service restaurant; ordering management system; business process management; business process.
  
  
• Efficiency evaluation of state co-operative banks employing data envelopment analysis and neural network technique  
  by Triambica Gautam, Amit Srivastava, Shruti Jain 
  Abstract: India is one of the fastest-growing economies in the world. Banks have played an important role in this growth and are a critical aspect of the future as well. The banking sector is undergoing tremendous change nowadays to meet the need of the hour. Cooperative and commercial banks are the two major categories of banks. The cooperative banks, in spite of a very small market share are likely to play an increasingly important role in the future keeping in mind their ability to ensure higher financial inclusion. In this paper, the authors have designed a model employing Data Envelopment Analysis (DEA) for State Cooperative Banks (StCBs). An input-oriented model was used and both, constant returns to scale (CRS) and variable returns to scale (VRS), runs of the model were used to determine efficiencies and rank these banks. Maharashtra State Cooperative bank emerged as the only efficient bank under the VRS run and Gujarat State Cooperative Bank showed highest score of 0.982 under the CRS run of the DEA model. The model is validated using the Neural Network technique with an accuracy of 93.5% for 70-30 ratio and an overall R-value of 0.944.
  Keywords: co-operative banks; data envelopment analysis; efficiency; neural network; input oriented.