Corporate Performance of ICT-Enabled Business Process Re-engineering

Abstract

Purpose – The purpose of this paper is to evaluate information and communications technology (ICT) adoption and its impact on business changes and performance. Design/methodology/approach – This paper provides a model interconnecting ICT adoption, ICT-enabled business process re-engineering (BPR), and performance in terms of external and internal organizational motivations with a balanced scorecard approach. The framework is tested using survey data from a sample of 377 chief information officers and senior information system managers. Findings – The results indicate that environment capacity fit and a dynamic environment positively affect technology adoption, which in turn directly triggers business processes changes, organizational learning and growth, while indirectly affecting improvement of customer satisfaction and financial performance. Research limitations/implications – This study is limited by its sample size due to the complexity of the questionnaire. Originality/value – This paper provides empirical evidence to examine how intra- and extra-organizational factors influence ICP adoption, how ICT shapes BPR, and business performance from a dynamic resources-based view. These findings will be valuable in understanding various motivations of ICT adoption, and predicting outcome of business performance stemming from ICT-enabled BPR.