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People process excellence and business outcomes - a structural equation modelling-based analysis

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  • Krishnamurthy Kothandaraman
  • T.J. Kamalanabhan

Abstract

People capability maturity model (PCMM) developed by Carnegie Mellon is one of the foremost business excellence models in the people management area and this model has been extensively applied in the technology services industry. This paper attempts to link through a conceptual framework the various people process excellence variables of PCMM to the state of organisational maturity attained as well as the consequent business outcomes. The framework has been validated empirically with data from 521 participants in the technology services industry in an emerging market context. Confirmatory factor analysis techniques have been used to validate and develop a measurement model. Such a model is further refined using basic structural equation modelling (SEM) techniques to make it more robust. The results of SEM are critically evaluated in comparison with corresponding regression modelling results. The findings of this research study validate that people excellence variables positively influence organisational maturity and this further leads to beneficial business outcomes across staff, firm and customer dimensions.

Suggested Citation

  • Krishnamurthy Kothandaraman & T.J. Kamalanabhan, 2018. "People process excellence and business outcomes - a structural equation modelling-based analysis," International Journal of Business Excellence, Inderscience Enterprises Ltd, vol. 15(1), pages 1-17.
    • Handle: RePEc:ids:ijbexc:v:15:y:2018:i:1:p:1-17
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