The relationship between business process re-engineering (BPR) and performance of Islamic banking branches in Kedah from the perspective of Maqasid Al-Shariah

The purpose of this study is to investigate the relationship between Business Process Re-Engineering (BPR) and performance of Islamic banking branches in Kedah from the perspective of Maqasid Al-Shari’ah. BPR factors are operationalized by strategic alignment, management commitment, change management, customer focus, BPR project management and IT infrastructure. The questionnaires were sent directly to branches and collected by hand. Simple random sampling was used for sample selection. 63 questionnaires were sent to managers’ Islamic banking, 59 samples were returned but only 54 samples were used for data analysis. The data was analyzed using ‘Statistical Package for Social Science’ SPSS version 21. Collectively, the result shows that the BPR are able to influence the performance of Islamic banking in Kedah branches. The BPR are able to influence overall performance of Islamic banks and others three (3) dimension of performance (educating individual, establish justice and public interest). However, for individually, analysis using multiple regression analysis indicates that only management commitment, customer focus and BPR project management are able to influence overall Islamic banking performance. In term of dimension banks performance, customer focus and BPR project management are influences dimension of educating individual. While, in dimension of establish justice and public interest, only customer focus are able to influence. Therefore, the managerial of Islamic banking in Kedah branches should focus on the management commitment, customer focus and BPR project management in order to enhance the performance of their banks. The outcome of this study provides important insights to both managers and researchers for further understanding about BPR factors and Islamic banks performanc