Business process re‐engineering in Malaysian banks and finance companies

Abstract

Business process re‐engineering (BPR) is a management technique that radically rethinks and redesigns business processes to achieve dramatic improvements in business performance such as customer service and quality. The acceptance of BPR has been reinforced by the implementation of re‐engineering initiatives in many Malaysian banking institutions and the Central Bank of Malaysia, Bank Negara, is in favour of these initiatives. Nevertheless the effectiveness of BPR in this context has hitherto not been investigated. The aim of this paper is to investigate the effectiveness of the critical success factors (CSFs) of BPR implementation process in the Malaysian banks and finance companies. Several hypotheses were tested concerning the relationships between the CSFs of the BPR implementation process and the performance of the enterprise, i.e. customer service performance and business performance. With the assistance of Institut Bank‐bank Malaysia (IBBM), 103 questionnaires were completed and analysed.

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