BUSINESS PROCESS REENGINEERING AND ORGANIZATIONAL PERFORMANCE OF COMMERCIAL BANKS IN RIVERS STATE

Abstract

The changing dynamics of business environment due to information and communication technology revolution are fundamentally changing the banking world. Business Process Reengineering have become the toast for organizational radical redesign of business process. The study investigated the effect of business process reengineering on performance of Commercial Banks in Rivers State. The study adopted two (2) research hypotheses guided the study. Sectional survey design was adopted. The population of the study consisted of 750 sectional survey design. The study consisted of 750 employees from 18 commercial banks in Rivers State. The instrument for data collection was a 15-item questionnaire measuring quality service delivery (5) item instrument and innovativeness on a five (5) item instrument. Cronbach Alpha was used to establish the reliability of the instrument and an overall coefficient of 0.76 was obtained. Data collected were all imputed into SPSS version 22.0, Pearson’s product moment correlation was used to test the hypotheses at 0.05 level of significance. All hypotheses were rejected and alternative hypotheses stated as P-values were less than 0.05 level of significance. The findings revealed that business process reengineering had an individual positive significant effect on two measures of organizational performance, quality service deliver and innovation. The study concluded that Business Process Reengineering will affect quality service delivery and organizational performance of Commercial Banks. The study recommended that management of Commercial Banks in Rivers State and beyon should pay adequate attention to issues relating to business process reengineering, taking into cognizance its pertinent role in radical improvement on creative rethinking, radical change and fundamental thinking that predicts overall organizational performance.