Business process re-engineering strategy and service delivery: does the moderating role of information technology infrastructure matter?

Abstract

The main objective of the study was to investigate the link between business process re-engineering strategy, information technology infrastructure and service delivery of companies manufacturing food in Kenya. Specifically, the study sought to determine the effect of information technology infrastructure on the relationship between business process re-engineering strategy and service delivery of companies manufacturing food in Kenya. The population of the study comprised of the company’s manufacturing food in Kenya. A descriptive cross-sectional survey design was adopted in data collection and analysis. Primary data was collected from respondents using a structured questionnaire, while secondary data was collected from published firm’s reports. Out of the 75 respondents targeted by the study, 44 respondents forming 56.67% response rate, which was considered adequate for analysis with good representation from all the subsectors in companies manufacturing food in Kenya. On hypotheses testing, it was established that 59.4% of variations in the firm’s service delivery are explained by variations in the BPR strategy, information technology infrastructure and product variable between BPR strategy and information technology infrastructure (IT Budget*BPR Prototype). The magnitude of information technology infrastructure’s moderating effect on the relationship between BPR strategy and firm’s service delivery is 1.3% (59.4% - 58.1%); then study therefore accepts the alternate hypothesis (HA1) that information technology infrastructure moderates the relationship between BPR and service delivery of companies manufacturing food in Kenya. HA1 is therefore supported. In conclusion, the study confirmed that the magnitude of information technology infrastructure’s moderating effect on the relationship between BPR strategy and firm’s service delivery is positive and statistically significant whereby 59.4% of variations in firm’s service delivery is explained by variations in the BPR strategy, information technology infrastructure and product variable between BPR strategy and information technology infrastructure (IT Budget*BPR Prototype).The results therefore support the anchoring theory of resource advantage and resource based view theories. This study has contributed in different areas including implications to theory, policy, management practice and methodological contributions as discussed in the subsequent paragraphs. First, this study has advanced frontiers of knowledge from the study findings; the role of information technology infrastructure on the relationship between BPR strategy and service delivery could not be generalized (Hammer and Stanton, 1995) in the replicated due to use of case studies and the role played by IT adoption as opposed to IT innovations must be implemented. Secondly, this research makes several noteworthy contributions to the existing theory: the empirical relationship testing how the relationship between BPR strategy and service delivery is moderated by IT infrastructure confirms the conceptual model that information technology infrastructure significantly moderates the relationship between BPR and service delivery of companies manufacturing food in Kenya. Thirdly on the study’s policy contributions: the manifestation of BPR strategy, IT infrastructure and service delivery dimensions had varied and mixed results on firm performance. The findings of this study offer suggestions that are beneficial to policy makers in the food-manufacturing sector in Kenya. Kenyan manufacturing firms have previously lacked fits well into the existing body of knowledge by holding that BPR strategy influence the firm’s level of performance and vice versa. Lastly, key methodological contribution is the use of a quantitative composite index in computing the SD index, the use an integrated empirical model to test the relation between BPR strategies, IT infrastructure and service delivery; the study used a number of indicators to measure each construct, which improved the construct validity.