Effect of Business Process Reengineering Factors on Organizational Performance: IT Capability as a Moderator

The main objective of this study is to examine the effects of the business process reengineering (BPR) factors on the Nigerian banks organisational performance. Additionally, this study also investigates the moderating effect of information technology (IT) capability in the relationship of BPR factors and the organisational performance. BPR factors are operationalised by change management, BPR strategy alignment, customer focus, management commitment, IT investment, and adequate financial resource. The IT capability dimensions include IT knowledge, IT operations and IT objects. Data was sent and collected through a hand-delivery method. A proportionate stratified random sampling was used for sample selection. 560 questionnaires were sent to banks’ managers but 417 of them were returned; giving a response rate of 74%. The findings were as follows: first, the findings show that fully supported relationships were found between IT capability and organisation performance. Second, the results showed that BPR factors such as adequate financial resources and management commitment were significantly related to overall organisational performance. Specifically, adequate financial resource's dimension was significantly related to cost reduction, customer service management and operations efficiency. Next, management commitment was found to be significantly related to customer service management and operation efficiency. Meanwhile, IT investment was significantly associated with customer service management. Other dimensions of BPR factors such as change management, customer focus, and BPR strategy alignment were found insignificant to the banks’ performance. Third, upon investigating the moderating effects of IT capability on the relationship between BPR factors and organisational performance, the results revealed mixed supports for the interaction effects of IT capability attributes. The outcome of this study provides important insights to both managers and researchers for further understanding on the effects of BPR factors and IT capability on organisational performance. The necessary suggestions on new area of research were recommended for future researchers