African Journal of
Business Management

  • Abbreviation: Afr. J. Bus. Manage.
  • Language: English
  • ISSN: 1993-8233
  • DOI: 10.5897/AJBM
  • Start Year: 2007
  • Published Articles: 4191

Full Length Research Paper

Moderating effect of Information technology (IT) capability on the relationship between business process reengineering factors and organizational performance of Bank

Kabiru Jinjiri Ringim1*, Mohd Rizal Razalli2 and Norlena Hasnan3
1College of Business, Universiti Utara Malaysia Block R 003, Kolej Maybank residential hostels, Sintok, 06010 Kedah, Malaysia. 2School of Operations Technology Management and Logistics, College of Business Universiti Utara Malaysia, 06010 Sintok, Kedah, Malaysia. 3School of Operations Technology Management and Logistics, College of Business Universiti Utara Malaysia, 06010 Sintok, Kedah, Malaysia.
Email: [email protected]

  •  Accepted: 08 December 2011
  •  Published: 25 April 2012

Abstract

The increasing competitive pressure as a result of technological development, globalization, changing customer demand led to survival challenges of many banks in the developing countries and demanded for improvement in quality customer service and speed to enhance profitability performance and cost reduction. This study is aim to examine the moderating effects of information technology (IT) capability on the relationship between business process reengineering (BPR)factors and organizational performance of Nigerian banks. Field study survey has been conducted under natural research setting. The sample of the data was received from commercial banks, microfinance banks and primary mortgage financial institutions in Nigeria. The tool of analysis used in this study was hierarchical regression analysis using SPSS software. 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 bank. Also, the result revealed that IT capability moderated the relationship between IT investment, management commitment and customer service management performance of bank. The outcome of this study provides important insight to researchers for further understanding on the effects of BPR factors and IT capability on organizational performance.

 

Key words: Business process reengineering, information technology capability, organizational performance, Banks, Nigeria.