BUSINESS PROCESS REENGINEERING AND ORGANIZATIONAL PERFORMANCE:THE MODERATING ROLE OF LEARNING CAPABILITIES

Abstract

The rapid and complex changes in global business environment due to information and communication technology revolution are fundamentally changing the world of services industry. New services, new models of services, high quality, low cost, and high speed have increased the complexities of the operations and functions of service industry, that forced to call for business process change as a means of transition to a new digital era. This study aims to explore the potential effect of Business Process Reengineering (BPR) and the organizational performance in the Sudanese context as a study on services firms. To achieve the objectives of the study, hypothetico-deductivist approach was adopted and a conceptual model was developed. Resource Based View(RBV) was employed to build the Conceptual Model of the Study. BPR as Independent was measured by (Change Management Systems and Culture, Organizational Change, Top Management Commitment, Information Technology Infrastructure, and Management Competence). In addition, to measure the organizational performance as dependent variable (efficiency, effectiveness and flexibility) are used as dimensions. The study employed descriptive and analytical research design, where convenience sampling and self-administrated survey questionnaires were sent to services firms in Sudan (Finance, Communication and Education), with response rate (96%). Data were obtained from primary sources and were analyzed using Principal Component Analysis and Multiple Regression Analysis. The results of the analysis revealed that there was a significant relationship between BPR (Change Management Systems and Culture, Organizational Change, Information Technology Infrastructure, and Management Competence) and Organizational Performance (Efficiency) of selected firms. The findings showed that there was a significant relationship between the BPR factors (Change Management Systems and Culture, and Top Management Commitment) and Organizational Performance (Flexibility) as well as a significant effect. The study findings showed the learning capabilities moderate the relationship between BPR and organizational performance. The study recommended to Sudanese service firms managers to successful applying BPR strategy and develop an effective management change tool that must be combined with learning capabilities and aligned with strategic planning to enhance the organizational performance. Keywords: Business Process Reengineering, Organizational Performance, learning capabilities, Sudan, Services Firms.