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Global investment in process-management technology has vastly increased for the purpose of integrating both external and internal processes with aligned resources to adapt to the changing environment of the service-based economy. The management of business processes in the service-based economy requires dynamic capabilities in order to continuously integrate knowledge, coordinate activities, learn from experience, and reinvent services to acquire and retain customers. A growing pattern within the characteristics of path dependency has been observed in the development of process management capabilities, which evolved from awareness to optimization. This paper reports the findings of a study of the development of process-management capabilities in six companies across two different industries. By tracking the growth of its process-management capabilities, three points are made: (1) organizations develop their business process-management capabilities through five stages, which are awareness, repetition, standardization, management, and optimization; (2) each maturity level is characterized by different business focuses, process designs, knowledge management, measurement methods, and management attitudes; and (3) the development path is characterized by ups and downs and is influenced by both external and internal changes.

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