How business process reengineering affects information technology investment and employee performance under different performance measurement

Abstract

Business Process Reengineering (BPR) is an approach for business process transformation and unconstrained reshaping of all business processes. This study examines the impact of BPR on information technology (IT) investment and employee performance. In this study, it is considered to be likely that employee performance will be improved by performance measurement, and thus, we intend to set up a performance measurement process which is similar to the employee's goal setting. To this end, this study examines the relationship existed between performance measurement and performance. The obtained results show a positive relation existing between IT and BPR implementation, and employee performance and BPR implementation. Moreover, the empirical result supports that performance measurement associated with cost reduction and lead time shortening in the internal processes and quality improvement in the external processes can improve the performance.