Towards a framework for business process re‐engineering in small and medium‐sized enterprises

Abstract

Business process re‐engineering (BPR) is the vogue, although somewhat discredited, change management method. It is as an information technology (IT)‐based and customer‐driven approach to organizational change, undertaken to enable superior performance, such as cost reduction, shorter cycle time, higher product quality and increased customer satisfaction. Although the literature on re‐engineering principles and prospects is large, there is little empirical research evaluating the success or failure of BPR initiatives. This is especially so in small‐ and medium‐sized enterprises (SMEs) in which the potential for BPR benefits may differ significantly from that in their larger counterparts. SMEs are the fastest growing segment of most economies and are perceived to be more flexible and adaptable in terms of structure and speed of response than larger organizations. The literature speculates that SMEs have as good a chance of re‐engineering successfully as their larger counterparts, although this is untested. Yet, with limited resources, such as IT and BPR expertise, and financial constraints, SMEs may find it difficult to re‐engineer. This paper addresses the role of BPR in SMEs and develops a framework to assess its implementation potential. Factors that facilitate and inhibit BPR performance are identified and analysed as the basis for empirical testing. A set of propositions is developed that allows operationalization of the framework. The ultimate goal is to develop a process and tool set to assist SMEs wishing to undertake business process re‐engineering.