Monitoring and planning of local territorial development as a modelable business process: the case of Latvian municipalities

The relevance of the study is driven by the need to improve the efficiency of monitoring and planning processes for local territorial development, which are currently unstructured and insufficiently systematized in Latvian municipalities. With the growing demand for transparency and effectiveness in municipal governance, the application of business process modeling (BPMdl) tools is a pressing issue. The problem is that Latvian municipalities make limited use of modern approaches to monitoring and planning territorial development, which reduces the quality of decision - making and slows down economic growth. The lack of structured models complicates the analysis and optimization of these processes. The aim of the study is to develop a model that represents the monitoring and planning of territorial development in Latvia as a business process, using the IDEF0 and BPMN notations. To achieve this goal, the researchers employed methods such as literature analysis, business process modeling, participatory research in one municipality, and statistical analysis of survey (May-June 2024) data from administrative staff of Latvian municipalities (43 persons, based on the total number of local governments). The results of the empirical analysis indicate a moderate overall level of BPMdl maturity in Latvian municipalities. Furthermore, BPMdl maturity levels, especially in terms of methods and culture, are statistically significant determinants of local economic development. Specifically, each additional point (in the linear regression equation) for process - related practices and culture increases the average annual income tax per capita by an average of 113.6 and 112.6 euros, respectively. The results of the discriminant analysis show that, based on BPMdl maturity levels, it is possible to classify Latvian municipalities into groups with a less developed economy and a more developed economy with an accuracy of 95.3 %.