Abstract
This study investigated the effect of business process reengineering on the performance of insurance firms in Nigeria, by employing two components of business process reengineering. Survey research design was adopted, through the administration of structured questionnaires on some selected staff of insurance companies at their head offices in Lagos, Nigeria. The research instrument was validated through content validity index (CVI), while the reliability of the research instrument was tested through test-retest method. The findings revealed that, the two components of business process reengineering adopted for this study have individual positive significant effect on insurance firms’ performance and adoption of new process. The F-statistics revealed that the two components of business process reengineering adopted for this study have positive significant combined effect on insurance firms’ performance in Nigeria. The adjusted coefficient of determination implied that, change in insurance firms’ performance is explained by the combined business process reengineering components. It is therefore concluded that, business process reengineering components are important drivers of insurance firms’ performance. It is recommended that, insurance firms should introduce new technology that will aid insurance penetration, especially information communication technology (ICT). The deployment of ICT tends to make it easier for existing and new customers to pick-up insurance policies through their smart phones or personal computers. Furthermore, insurance firms should equally come up with reengineered processes. The process of serving their customers should be enhanced.
Highlights
Organizational performance has become a major determinant of firms’ corporate existence
In addressing this research gap, this study examines the effect of business process reengineering on insurance firms’ performance
This sub-section aggregates the indicators of business process reengineering
Summary
Organizational performance has become a major determinant of firms’ corporate existence. The goal of business process reengineering is to redesign and change the existing business practices or process to achieve dramatic improvement in organizational performance. Business process entails a set of logically related tasks performed to achieve a defined business output or outcome. It involves a wide spectrum of activities procurement, order fulfillment, product development, customer service and sales (Okafor & Okeke-Ezeanyanwu, 2018; Sharma, 2006). Hammer and Champy (1993) argued that, the fundamental reconsideration and radical redesign of organizational process in order to achieve drastic improvement of current performance in cost, service and speed enjoy a fair measure of consensus Business process reengineering becomes an offshoot of business process. Hammer and Champy (1993) argued that, the fundamental reconsideration and radical redesign of organizational process in order to achieve drastic improvement of current performance in cost, service and speed enjoy a fair measure of consensus
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