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This study analyzes business processes in public and private sector organizations with respect to key performance variables such as business process orientation, business process innovativeness and business process efficiency. After presenting a theoretical framework, a model is proposed and tested to examine the impact of business processes on employee and organizational performance. Proportionate stratified sampling method is used to collect data from employees of domestic scheduled banks in Pakistan through a structured questionnaire. With a response rate of 19%, a total of 474 completely-filled questionnaires were received, constituting the sample size of this study. This empirical investigation uses factor analysis and structural equation modeling techniques like simple linear regression and partial least squares to test the proposed model. SPSS 15.0 and visual partial least squares (VPLS) 1.04 were used for data analysis. The findings validate the proposed model, with significant direct and indirect correlations observed between business process variables and employee and organizational performance. This study strongly supports a process-based view of business performance. A process approach is of immense importance in Pakistan given that inefficient business processes are the overwhelming norm in businesses over there. Key Words: Business Processes, Business Process Analysis, Business Process Orientation, Business Process Innovativeness, Business Process Efficiency, Employee Performance, Organizational Performance
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