Critical success factors of business process re-engineering in the banking industry

✍ Scribed by T. C. E. Cheng; Ida S. F. Chiu

• Publisher: John Wiley and Sons
• Year: 2008
• Tongue: English
• Weight: 136 KB
• Volume: 15
• Category: Article
• ISSN: 1092-4604
• DOI: 10.1002/kpm.316

✦ Synopsis

Abstract

This study seeks to identify the factors that are critical to successful implementation of business process re‐engineering (BPR), and attempts to develop a reliable, empirically tested and rigorously validated measurement instrument for BPR, for Hong Kong's banking sector. We conducted a large‐scale survey of banking industry executives and applied a rigorous research methodology to treat the survey data. We identified four critical success factors (CSFs) of BPR implementation, which are management commitment, customer focus, use of IT and communication of change and developed a functional instrument to measure BPR in the banking industry. Of these four factors, only customer focus has a significant relationship with firm performance. This finding is consistent with the literature on successful re‐engineering. This paper contributes to research by identifying the success factors of BPR implementation, and provides managerial insights on the successful management of BPR, in the banking industry. Copyright © 2008 John Wiley & Sons, Ltd.