The Effect of BPR Critical Success Factors on Business Performance: An Empirical Study on a Malaysian Government Agency

Abstract

The acceptance of Business Process Reengineering (BPR) has been reinforced by the implementation of reengineering initiatives in Malaysian’s especially in finance institutions to achieve dramatic improvements in business performances. Nevertheless, the effectiveness of BPR in government agency context has hitherto not much been investigated. The aim of this research is to identify relationship of BPR Critical Success Factors (CSFs) on business performances on a Malaysian’s government agency. Several hypotheses were tested concerning the relationship between the CSFs of the BPR implementation and the business performance of the agency. This study used quantitative method which questionnaires were distributed to executive officers at a Government Agency in Malaysia as sample for this study and stratified random sampling method was used in this study. This research finds that BPR critical success factors of top management commitment, employee education & training, employee cooperation & teamwork, information technology infrastructure and BPR project management has relationship with government agency business performances. This research also found that BPR critical success factors of top management commitment and BPR project management has positive effects on government agency business performances where are BPR critical success factors of BPR project management has the most effect on government agency business performances. This research is one of the few empirical studies that examine the relationship between BPR critical success factors on business performances. This study further contributes to the existing literatures by studying the consequences of BPR critical success factors effects on public service agencies business performances.