The Moderating Effect of IT Capability on the Relationship between Business Process Reengineering Factors and Organizational Performance of Bank

The objective of this paper is to investigate the moderating effect of IT capability in the relationship of BPR factors and the organizational performance. BPR factors are operationalized by change management, BPR strategy alignment, customer focus, management commitment, IT investment, and adequate...

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Bibliographic Details
Published in:Journal of internet banking and commerce : JIBC 2012-08, Vol.17 (2), p.1
Main Authors: Ringim, Kabiru Jinjiri, Razalli, Mohd Rizal, Hasnan, Norlena
Format: Article
Language:English
Subjects:
Bank acquisitions & mergers
Banking industry
Banks
Business process reengineering
Competition
Competitive advantage
Cost reduction
Customer satisfaction
Customer services
Earnings per share
Financial performance
Financial services
Globalization
Impact analysis
Information technology
Liberalization
Literature reviews
Loans
Performance evaluation
Performance management
Portfolio management
Profitability
Profits
Questionnaires
Ratios
Service industries
Studies
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Summary:The objective of this paper is to investigate the moderating effect of IT capability in the relationship of BPR factors and the organizational performance. BPR factors are operationalized by change management, BPR strategy alignment, customer focus, management commitment, IT investment, and adequate financial resources. The IT capability includes IT knowledge, IT operations and IT objects. Data was collected through a hand-delivery method by sending questionnaires to 560 banks (Commercial, Microfinance and Mortgage). This study used stratified random samplings proportionate to the numbers of the banks for sample selection. The findings showed that IT capability moderated the relationship between BPR factors such as change management, customer focus, management commitment and overall organizational performance of the bank. Furthermore, the result revealed that IT capability moderated the relationship between IT investment, management commitment and customer service management performance. The outcome of this study provides important insight to researchers for understanding on the effects of BPR factors and IT capability on organizational performance. [PUBLICATION ABSTRACT]
ISSN:1204-5357
1204-5357