Open AccessBusiness Process Re-Engineering and Profitability in the Nigerian Oil and Gas Industry: The Mediating Influence of Operational Performance
Author(s) -
Olawumi Dele Awolusi,
Sulaiman Olusegun Atiku
Publication year - 2019
Publication title -
information management and business review
Language(s) - English
Resource type - Journals
ISSN - 2220-3796
DOI - 10.22610/imbr.v11i3(i).2943
Subject(s) - profitability index , structural equation modeling , operationalization , business process reengineering , competence (human resources) , exploratory factor analysis , business , petroleum industry , process management , process (computing) , marketing , industrial organization , operations management , computer science , economics , management , engineering , philosophy , finance , epistemology , machine learning , lean manufacturing , environmental engineering , operating system
The aim of this study was to operationalize and test a conceptual model to measure the effect ofBusiness Process Re-engineering (BPR) implementation on profitability in the Nigerian oil and gas industry.Based on a framework from Al-Mashari and Zairi, these objectives were achieved using the followingprocedures: reliability and validity analysis, factor analyses (exploratory factor analysis-EFA andconfirmatory factor analysis-CFA) and Structural Equation Modelling (SEM). The model contrived thereforeconfirmed the positive influence of BPR on profitability, as well as the mediating influence of operationalperformance in the Nigerian Oil and Gas industry. Specifically, the structural model shows the positive effectof organizational structure and IT Infrastructures on both profitability and operational performance.However, SEM failed to establish the relationship between management competence and support andprofitability. The study is expected to enhance the adoption and successful implementation of BPRprogrammes in the oil and gas industry.