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

Abstract

Financial institutions work in a highly competitive market. There is always a pressure for improving the processes and IT up gradation, but there is a lack of research on this particular area. This paper focuses on investigating the impact of business process reengineering (BPR) on the performance of banks, while keeping the IT as moderator. BPR plays a vital role in improving the processes, thus affecting the overall performance of organization. Yet, the implementation of BPR requires a lot of risk. Thus, the success rate of BPR depends on how well it has been carried out. Data was collected through self-administered questionnaire from 50 commercial banks. The response rate was 95%. Data was analyzed through multiple regressions on SPSS. The results indicated that IT acted as a moderator between BPR factors and performance of Pakistani banks. This study has strong implications for managers & practitioners seeking to implement BPR in organizations.

Keywords: Business process reengineering, IT knowledge and capacity, Performance, Pakistani banks.