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Critical success factors of business process re‐engineering in the banking industry
Author(s) -
Cheng T. C. E.,
Chiu Ida S. F.
Publication year - 2008
Publication title -
knowledge and process management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.341
H-Index - 44
eISSN - 1099-1441
pISSN - 1092-4604
DOI - 10.1002/kpm.316
Subject(s) - business process reengineering , critical success factor , business , process management , business process , process (computing) , banking industry , scale (ratio) , focus (optics) , marketing , knowledge management , computer science , accounting , work in process , physics , quantum mechanics , lean manufacturing , operating system , optics
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.