INFLUENCE OF BUSINESS PROCESS REENGINEERING DRIVERS ON ORGANIZATIONS PERFORMANCE OF INSURANCE FIRMS IN KENYA
INFLUENCE OF BUSINESS PROCESS REENGINEERING DRIVERS ON ORGANIZATIONS PERFORMANCE OF INSURANCE FIRMS IN KENYA
Petronila Amonde Omollo - Masters Student, Jomo Kenyatta University of Agriculture and Technology, Kenya
Dr. Lawrence Odollo - Lecturer, Jomo Kenyatta University of Agriculture and Technology, Kenya
ABSTRACT
Today’s organizations are generically different in design compared to some years back. Organizations have been changing from time to time due to changes in technology and customers’ demands. As such, failure of organization to meet customers’ demand and/or expectations forces customers to shift to other service providers. Business process re-engineering is therefore used by organizations to improve their processes and operations hence improving organizational performance. The main objective of the current study was to assess the influence of business process reengineering drivers on organization performance of insurance firms in Kenya. The specific objectives of the study were to assess the influence of top management commitment, organization culture, and information technology infrastructure and resource dedication on the performance of Insurance firms in Kenya. The theories anchoring the study comprise of Dynamic Capability Theory, Schein’s Theory of Organizational Culture, Technology Acceptance Model (TAM), and Resource Based View Theory. A descriptive survey research design was employed in the study. 29 firms offering general insurance were involved in the study. The unit of observation comprised of heads of departments from finance, ICT, Human Resource, Marketing and Product development. One respondent was targeted from each of the departments making a total of 145 respondents. A purposive sampling approach was employed in the study. Both primary and secondary data was used in the study. Primary data was collected through questionnaires structured through a 5-point likert scale while secondary data was collected through secondary data collection sheet. The data collected was analyzed by employing both inferential analysis (regression and correlation) and descriptive statistics (mean and standard deviation) using MS Excel and SPSS software V25. The results and findings of the analysis was presented in form of tables and figures. The results shows that top management commitment, organization culture, and information technology infrastructure and resource dedication bears a positive and significance influence on organizational performance of insurance firms in Kenya. This is depicted by beta values of 0.591, 0.341, 0.403 and 0.516 and sig values of 0.000, 0.009, 0.000, and 0.000 respectively. The results bear the implications that increasing either of the independent variable with one-unit results to increase in the performance levels of the insurance firms with the respective beta values. The study recommended enhancement of business process reengineering drivers including of top management commitment, organization culture, and information technology infrastructure and resource dedication since the practices leads to improved performance of the firms.
