Increasing competitive pressure as result of technological development



The increasing competitive pressure as a result of technological development, globalization, changing customer demand led to survival challenges of many banks in the developing countries to improve customer service quality, speed, reduce operating cost and enhance profitability performance (Randle, 1995). Banks and other financial service providers also become under stress test as a result of the US mortgage industry linked global financial crisis (Soludo, 2009). This situation forced commercial banks to implement various management approaches including merger and consolidation option as a lasting solution to have a strong balance sheet in their operations (McDermott & Berry, 1995). Banks streamlined their processes and focused on customer service delivery by segmenting the market to provide personalized service and create new product (Frieder & Gregory, 1996). Moreover, the changes in financial industry made banks to become more proactive to competition and conscious of the quality improvement that led to the adoption of total quality management (TQM) to meet the customers expectation, improve operational processes, and services (Ramberg, 1994).

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The implementation of TQM philosophy (do it right for the first time) by several banks and financial institutions have gained some level of improvement in the operations, productivity, profitability and competitiveness of value added services. However, peruse of some literatures indicated that companies operating in turbulent environment, required a dramatic improvement in productivity, competitiveness and profitability. The rate of technological innovation and development is constantly pressurizing them to change radically not just incrementally. Stressing on this arguments, Business Process Reengineering (BPR) is major management approach that can focus on doing thing in a better way that is clearer and easier to achieve a radical improvement on quality, speed, customer service and reduction in cost (Goll & Cordovano, 1993). Allen (1994), stated that, the focus of reengineering is on the processes redesign, which relate to doing things better and clearer. One of the primary goals of financial service industry is to always enhance processes that would improve customer service performance through the management approach of cost reduction, improve quality, speed and customer service for profit maximisation. Therefore, management scholars argued that organization can become proactive in operation by adopting the business process reengineering (BPR) to achieve remarkable improvement in the organizational performance (Hammer 1990; Davenport & Short 1990).

Business process reengineering (BPR) is a popular management tool for dealing with rapid technological and business changes (Ranganathan & Dhaliwal, 2001). It was first introduced by Hammer (1990), as a radical redesign of processes in order to gain significant improvements in cost, quality, and services (Ozcelik, 2010). BPR creates changes in people (behavior and culture), processes and technology (Al-Mashari & Zairi, 2000). It does not seek to alter or fix existing processes; but, it forces companies to ask, whether or not a process is necessary, and then seeks to find a better way to do it (Siha & Saad, 2008). BPR integrates all departments into a complete process which have been designed to fulfill a specific business goal (Cheng et al, 2006). Successful implementation of BPR enables organizations to achieve dramatic gains in business performance (Shin & Jemella, 2002).

BPR helps banks to deal with new economic challenges and change the traditional processes to improve their customers' satisfaction. Business Process Reengineering (BPR) is a management discipline of analysing and then redesigning current business processes and their components in terms of efficiency, effectiveness and added value to the objectives of the business. The conduct of business process reengineering steps is planned to gather and process business requirements in support of a modernization effort for defined area. The BPR starts with planning activities that include the creation of BPR team, the development of a BPR scope document and an examination of existing proposal that relate to a given area, examines the existing and future business process and improve accordingly. Similar to any other management approaches, the successful implementation of BPR depend on how well it can be fitted to the bank/companies cultural norms, and information technology (IT) suggested by (Davenport & Short, (1990); Hammer and Champy (1993); Murray and Lynn (1997); Al-Mashari and Zairi, (1999); Bhatt (2000); Khong and Richardson, (2003); Attaran (2004); Ahmad, Francis and Zairi, (2007).

Reengineering in a bank should be undertaken as a project, the project management expertise of IT department become a key ingredient in the success of reengineering. The IT capability includes both the technical and managerial expertise required to provide reliable physical services and extensive electronic connectivity within and outside firm. Information technology (IT) increase the market share of the bank through offering of a product or service that is not offered by another bank (e.g. those customers that prefer private/personalised banking or use debit cards have become the focus of retail and investments in banking (Beyers and Lederer 2001; Peffers and Dos Santos 1996; Post et al., 1995). For example, new innovative banking practice through merger and consolidation enabled Nigerian banks to bridge the service gap in the system (Sidikat and Ayanda 2008). Therefore, the application of IT capability would enhance service delivery process, produce new product, new processes, new strategy, make the productivity of work faster, eliminate all communication barriers in the organization and empower workers to link up with customers and suppliers to achieve competitive advantage (Davenport, 1990; Hammer, 1990; Teng, James, Grover & Fiedler, 1994).

1.2 Problem Statement

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The decline in operational performance efficiency of Nigerian banks in terms of return on assets, equity and operating cost requires urgent attention of the banks to re-strategise for process performance improvement (CBN/BSD, 2008). Sanusi (2010) argued that poor operational performance indices of Nigerian financial institutions were due to inadequate and inflexible operational processes. This was part of the revelations of the special audit for all the Nigerian banks conducted jointly by Central bank of Nigeria (CBN) and Nigeria deposit insurance corporation (NDIC) in July 2009 for Commercial banks and in February 2010 for Microfinance banks. Vetiva Capital Management (2010), reported a quarterly performance of stocks on the Nigerian Stock Exchange Market for the quarters ended September 2010 that indicated the negative performance of (-2.49%) of banking industry stocks as compared to other industrial sectors of the economy. The weak operational processes of banking services are responsible for decimal performance of the sector in Nigeria (Ibenta, 2010)

The consequences of merger and consolidation of operational process and an intensified foreign competition in financial service industry through liberalisation and globalisation faced by the organizations led to radical changes in operations, and services that result in conflicting performance (Wei & Nair, 2006). The customer retention became a key factor in determining the success of bank. The bank that has the largest customer base and highest customer retention rate will be a market leader in the industry. Hence, the quality of customer service becomes a driving force in ascertaining business survival in the banking industry (Tang & Zairi, 1998). Various authors such as Tas & Sunder, (2004); Bhatt & Trout, (2005); Tennat & Wu, (2005) Terziovski, Fitzpatrick & O'Neill, (2003); Salimifard, Abbaszadeh & Ghorbanpur (2010) argued that business process reengineering (BPR) in banking services have continued to increased organizational performance and identified the BPR factors that played a major role to successful outcomes for reengineering projects to includes: change management, management commitment, project management, customer focus, adequate financial resources, egalitarian culture, use of I.T, less bureaucratic structure, and quality management system. CSF is one of the most important areas that practitioner would have a greater opportunity to plan and manage successfully if identified in the research on BPR implementation (Cheng & Chiu, 2008). Therefore, given the popularity of BPR and high degree of failure rate linked with BPR project, the desire to identify the key success factors of BPR has gain importance as contemporary management approach for business success. In Nigerian banking industry, managers realized the effectiveness of BPR for gaining competitive advantage even though it is new, they do not fully understand what BPR is about and the CSFs that drive the successful implementation of the BPR project. Therefore, to fill this gap, an investigation into BPR factors would be worthwhile. When examining the relationship between the reengineering factors such as intangible resources and organizational performance, it has been posited that there may exist some key moderating variables that are important issues to research (Wade & Hulland, 2004). A moderator variable is a qualitative/quantitative variable that affect the direction and/or strengthen of the relationship between an independent or predictor variable and dependent or criterion variable (Baron & Kenny 1986). The moderating variable of great interest is organization IT capability and its influence on the intangible resources (BPR factors) performance relationships (Liu, Liu, & Hu, 2008).

The growing of business dependence on information technology both operationally and strategically require the need to focus on value-creating intangible issues of IT capability, such as process effectiveness, IT experience and innovation. IT management experience and competence is expected to show stronger leadership skills and commitment in organizations (Ross & Feeny 1999; Gottschalk 2002; Chun & Mooney 2009). Building upon the knowledge-based theory, it is argued that the ability to blend business and IT knowledge, operational experience for innovation and competence through a variety of strong intra-organizational relationships lies at the heart of firms' superior ability to understand the potential of information technology to enhance performance (Mata et al. 1995; Armstrong & Sambamurthy 1999; Wu et al. 2008). To add up the contingency model in explaining the seemingly conflicting findings regarding the impact of aggregate IT capability. Tuominen et al. (2003) proposed the assessment of innovativeness through organizational adaptability as a pre-performance resource and an intermediate factor for financial performance.

With the problem at stake, it has therefore become necessary to advance the understanding of the relationship between the factors in business process reengineering performance and IT capability in terms of IT knowledge and IT operations. Previous empirical studies that examined the BPR factors reengineering performance relationships (Cheng & Chiu, 2008) have ignored the specific nature of IT capability and also, has not fully considered important environmental condition that influence the relationships. Drawing on the resource-based view, contingency perspective proposed that IT capability impact on firm resources was contingent on the fit between the IT capability/resource a firm possesses and the demands of the industry in which it competes. IT capability is expected to influence the BPR factors and reengineering performance relationships. To the researcher's knowledge, this moderating effect has never been investigated by prior studies. Although some firms in Asia, UK and US have examined the application of BPR in financial service industry, evidence revealed that much effort did not reach the original expectation (Hammer & Champy, 1993). Therefore, the proposed study is different from the previous researches based on the additional three (3) BPR factors in terms of adequate financial resources; effective process redesign, and less bureaucratic flattered structure (Ahmad et al, 2007; Madubueze, 2007; Salimifard, et al, 2010) were introduced into the previous model used. Also, IT capability in terms of IT knowledge and IT operations was being viewed as moderator (Tippins & Sohi, 2003; Mistry, 2006; Yongmei, Hongjian & Junhua, 2008). Huang et al, (2009) argued that the empirical evidence of Italian banks suggests that the development of IT capability, such as creating an Intranet to serve as a repository and communication tool, can support the redefinition of the overall strategy of the bank. Furthermore, cultural integration of the branch network and a life-long training process can be conducted to sustain the banks' large scale network (Canato and Corrocher 2004). Despite the fact that the financial service industry is one of the early adopters of new information technologies, the effect of IT capability on firm performance is inconclusive in the service sector in general, which is contrary to its manufacturing counterpart (Brynjolfsson 1993). The comparison to be made between banks with BPR project Vs. banks without BPR project (Xin James He, 2005) as well as settings to identify the discrepancies as a result different cultures, environment, economic activities and level of infrastructural development (Peppard and Fitzgerald, 1997).

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This study is aimed to understand the effect of the I.T capability in terms of I.T skill/knowledge and IT operations on the performance of Nigerian banks and financial institutions, the possible relationships among the constructs of BPR factors and performance, and test a model that show the effect of BPR factors on organizational performance as well as the influence of IT capability that moderate the causal relationship between the BPR factors and performance of Nigerian banks (Commercial, Microfinance and Mortgage finance. Hence, this study is aimed to explore possible relationships among the constructs, and test a model that show the effect of BPR factors on firm performance and the moderating effect of IT capability on the causal relationship between the BPR factors and organizational performance of banks in Nigeria.

1.3 Research Objectives

The purpose of the research is to study the effect of BPR factors on organizational performance of Nigerian banks with information technology capability as the moderating factor. Specifically, the objectives of this study are:

To examine the relationship between the BPR factors in banking and organizational performance of Nigerian banks

To determine the effect of information technology (IT) capability in terms of IT knowledge and IT operations on the organizational performance of Nigerian banks

To examine the moderating effect of IT capability in terms of IT knowledge and IT operations on the relationship between BPR factors and organization performance in Nigerian banks.

1.4 Research Questions:

The following questions are going to be addressed accordingly by the research:

To what extent does the BPR factors in banking relate to organizational performance of Nigerian banks?

To what extent does information technology (IT) capability (IT knowledge and IT operations) affect the organizational performance of Nigerian banks?

To what extent does IT capability (IT knowledge and IT operations) moderates the relationship between BPR factor in banking and organizational performance of banks in Nigeria?

1.5 Significance of the Study

1.5.1 Theoretical contributions:

Firstly the study would contribute to the existing body of knowledge by integrating together information technology capability and BPR factors in banking reengineering performance relationship in one study. These two concepts of BPR factors in banking business process reengineering and information technology capability represent two independent main research streams. Most of the previous studies investigated independently the link between BPR factors reengineering performance (e.g. Cheng & Chiu 2008; Sidikat & Ayanda, 2008; Khong & Richardson, 2003; Tennat & Wu, (2005) Terziovski, Fitzpatrick & O'Neill, (2003); and information technology capability and organizational performance (e.g. Szanto, 2005; Bharadwaj, Bharadwaj & Konsynski, 1999; Brynjolfsson, 1993; Chan, 2000; Gatian & Hicks, 1995; Lin, 2007; Yongmei, Hongjian & Junhua, 2008; Huang, Li & Chen, 2009; Ross & Feeny 1999; Gottschalk 2002; Chun & Mooney 2009; Liu, Liu, & Hu, 2008; Mata et al. 1995; Armstrong & Sambamurthy 1999; Wu et al. 2008). Thus, this study would add to the existing knowledge of Management studies of the combined effect of BPR factors in banking business process reengineering and information technology capability and its impact to organizational reengineering performance. This research would add value to Operations Management field that a BPR factor not only relates directly to business performance but also through the moderating effects of information technology capability.

Secondly, this study would examine individually, the specific linkages between information technology capability and reengineering performance. In other words, BPR factors would be examined individually with regard to the moderating effect of I.T knowledge and IT operations in relation to organization reengineering performance. Previous studies on the linkages between these two concepts are general and broad in nature without examining the specific issues of information technology capability (IT knowledge and IT operations). Therefore, this study would contribute further to the current body of knowledge by investigating the individual effects of IT capability on BPR factors with regard to organizational performance.

Thirdly, this study would extent the existing body of knowledge by enhancing the understanding of BPR factors and IT capability issues of banking and financial organization in Nigeria. Studies on BPR (business process reengineering) and information technology capability are limited in developing countries as most research was conducted in developed countries such as United States and other European countries (Currie & Willcocks, 1996; Brandon, Bransford, Guimaraes & Tor, 1999; Shin & Jemella, 2002; Al-Mashari, Irani & Zairi, 2001). Thus, this study would extend further the current knowledge of operation Management in financial and banking organizations in developing countries generally and Nigeria specifically.

1.5.2 Practical Contributions

This study would provide the much needed information on the nature of relationship of BPR factors in banking business in Nigeria and the moderating effect of I.T capability on organizational performance by producing empirical evidence on this relationship. Thus, the present study will benefit the Managers, Business Practitioner's, Nigerian government and academics by enhancing their awareness on influence of IT capability on BPR performance of banking and financial organizations in Nigeria. Both BPR factors and IT capability are regarded as sources of competitive advantage, the outcome of this study would justify further investigation and investment. Furthermore, policy makers can use the result of the study to design a policy and planning strategies that can support their operational management to the benefit of banking and finance sector and indirectly contribute to national development.

Scope of the Study

The study would focus on the BPR factors, IT capability and organizational performance of banks and financial institutions in Nigeria. The adapted BPR factors in banking are: 1) Change management; 2) Management commitment; 3) Project management; 4) Less bureaucratic structure; 5) Customer focus; 6) Effective process redesign; 7) Adequate financial resource performance and 8) I.T infrastructure (Salimifard,et al, 2010) . The moderating variable information technology (IT) capability include: IT knowledge and IT operations (e.g. Tippins & Sohi, 2003; Yongmei, Hongjian & Junhua, 2008; Huang, Li & Chen, 2009) and lastly the organizational performance dimensions limited to financial and non financial indicators ( Sidikat & Ayanda, 2008; Tennat & Wu, 2005) Terziovski, et al, 2003; Wei & Nair, 2006) .

The scope of the organizations to be surveyed includes commercial banks, microfinance banks and mortgage finance institutions in Nigeria. The study would focus on the organizational level from the management perception on BPR factors, information technology capability and organizational performance. Thus the sample would be limited to the managers or senior executive of the organization. The study would not identify from the customers perspectives view of the organization as the management are in better position on the operations, services, planning and decision making process of the organizations. Research questionnaire would be administered to cover 560 registered banks (Comm. 20, PMFI 53, and MFBs 487) in the Federal Republic of Nigeria. Nigeria has been selected; firstly because it is the developing economy that strive to catch up with developing nations like Malaysia, Singapore, and South Africa. The banking and financial industry is a competitive in Nigerian environment, each bank require information technology and strategic management approach to improve its organizational performance (Idowu, Alu & Adagunodo, 2002). The banking sector plays the role of a driver in Nigerian economy that contributed over 6.4% against a target of 10% of total GDP (CBN, 2008).

Furthermore, the possession and the management of information is a key activity in banking, and the influence of process reengineering and innovations through IT is likely to be bigger in banking than in other industries (David-west, 2005). Banks importantly require IT to coordinate enormous volumes of information (David-west, 2005). Information technology (IT) is perceived as a necessity to pursue the rationalization and cost management due to intensified competition and crisis in the financial sector (De Bandt & Davis, 2000). Information technology has helped Nigerian banks to streamline the back office operations by improving both efficiency and cost reduction. Advances in technology also influence the way banks services are delivered with aimed of making it more convenient for customers. For example, many banks in Africa now have their branches connected on-line real time (24/7). This clearly reduces the danger of carrying cash. Some banks have ATM to make cash available to their customers 24/7. Some Nigerian banks practice e-banking, telephone, and mobile banking. Money transfers services through MoneyGramme and Western Union Money transfer have enable Nigerian in Diaspora to send money to their family (CBN, 2008). Information technology capability (IT operations and IT knowledge) moreover, makes Nigerian banks to participate more effectively in international banking arena. For instance, some technologically up to date banks enable them to access international banking networks in order to efficiently affect fund transfer, open, amend, and negotiate letter of credit, retrieve up to date status of customer transactions among the banks that joined the Society for Worldwide Inter-bank Financial Telecommunication (SWIFT).

1.6.1 Definition of Variables

Three (3) major variables that are involves in the study: BPR factors in banking, information technology (IT) capability (IT knowledge and IT operations), and organizational performance. The operational definitions of these variables are briefly discussed:



Operational Definition


BPR factors in banking

This study defines BPR factors as the extent of the few reengineering factors that lead to successful outcomes for reengineering projects.


Change Management

This study defines change management as the extent of all human, social related changes and cultural adjustment technique needed by management to facilitate the introduction of newly designed processes and structures into the systems, working and to deal effectively with resistance.


Top Management Commitment

This study defines management commitment as the extent of top management commitment to ensure that employees contributed toward the successful achievement in remarkable improvement in organizational performance of bank


Project Management

This study defines project management as the extent of alignment of Project strategy with corporate strategy, effective use of consultant, effective planning and project management techniques and adequate identification of project values and bank performance measurement.


Effective Process Redesign

This study defines process redesign as the extent of the organization to create or redesign processes that have a direct impact on customer value and cost on operational system of a bank. The redesign processes perform a work activity in a radically new way of adding value to customers. It starts with a relatively clean slate with creativity to produce a specified output for a customer or particular market.


Customer Focus

This study defines customer focus as the extent of researches conducted on customer survey, requirement, value, satisfaction, competitive analysis and benchmarking for improvement of performance of organization.


Adequate Financial Resources

This study define adequate financial resources as the extent of monetary resources available to meet up the budgetary allocation for successful implementation of project for improvement of performance of a bank


Less Bureaucratic Structure (Flatter Structure)

This study defines flatter structure as the extent of organization structure that encourages creativity and innovativeness. The less bureaucratic and more participative organization the better and that would avoid failure of BPR implementation.


Information Technology (I.T) infrastructure

This study defines I.T infrastructure as to the extent of organization's expenditures incurred on I.T infrastructures, I.T personnel training, I.T consulting, I.S maintenance, computers and software, effective alignment of I.T infrastructure and building an effective I.T infrastructure, proper I.S integration, effective reengineering of legacy I.S, increasing I.T function competency, and effective use of software tools are the most important factors that contribute to the improvement of operational performance of a bank


Information Technology Capability

This study define IT capability type as to the extent of complex bundles of IT related resources, skills and knowledge, exercised through business processes operations, that enable firms to coordinate activities to achieve desired result.

Tippins & Sohi, (2003) define IT capabilities as the extent to which an organization is equipped with IT infrastructure, IT skills knowledge and experience as well as effective IT operations utilization. A high level of IT experience enables the smooth implementation of the organization's strategy, develops reliable and cost effective systems for the organization, and anticipates customer needs (Bhatt & Grover, 2005).


I.T skill knowledge

IT skills concerns with the skills such as programming, systems analysis and design, and competencies in emerging technologies. Managerial IT skills include abilities such as the effective management of IT functions, coordination and interaction with user community, and project management and leadership skills (Bharadwaj, 2000).


I.T operations

IT operations refer to the activities within the organization that are required to meet its goals. These activities are underpinned by skills that encapsulate the knowledge within the firm. When IT operations are able to monitor and manage IT resources and services from a real-time business out-come perspective, it can align IT operations with business priorities. As a result, IT operations can streamline business processes and optimize resources to help manage costs, increase efficiency to manage productivity and increase revenue, and help ensure service availability to enhance customer satisfaction rather than simply focus on technology


Organizational Performance

This study defines organizational performance as "the level of bank performance (increase/decrease) in terms of both financial and non financial performance indicators".

Organizational performance is refers to the organizational effectiveness and represents the results of the organization's activities or focus on the achievement of objectives (Hammer & Champy, 1993; Henri, 2004).

1.6.2 Banks and financial institutions

Bank is a financial institution that facilitate financial intermediary for collecting deposit and channels those deposit into lending activities. Banks intermediate between customer with surplus capital and those with deficit. Banks play a critical role in financial system and economy by allocating fund from savers to borrowers that makes overall economy to functions in an effective and efficient manner. Brief discussions on research focus banks are as follows:

Commercial bank

Commercial bank is a financial institution that facilitates daily business transactions and serve as an intermediary that channel the surplus fund to the entrepreneurs that needed the fund for productive purposes in an economy. Banks accepts deposit from public, lends money to those who are in need at a premium called interest, allow depositors withdrawal using cheques, counter tellers and electronic cards. Banks help in the remittance of fund from one place to another and the other function of a bank includes: issuing credit instrument such as letter of credit, travellers cheques to customer, underwriting capital issues (shares and debentures), safe custody of valuables, advice and information, ATM and Credit cards.

Microfinance bank

Microfinance bank in Nigeria can be described as the financial services institution for poor and household low income earners. It is a unit banking system that act as linkage between the informal forms of rural savings called "ASUSU" commonly practiced by rural and some urban petty traders, small and medium scale businesses. Abdulkadir, (1989) stated that microfinance banks were formed in order to improve the banking habit of the rural populist. Microfinance bank extends credit facilities to rural farmers, artisan and craftsmen within the locality based on their self recognition, credit worthiness and guarantees from their social clubs, cooperatives and societies. This method of lending unlike traditional banking practice of placing emphasis on adequate collateral security before such loan is given.

Mortgage bank

Mortgage Finance bank is a specialized bank licensed to make mortgage loan directly to the client. The primary mortgage institutions law in Nigeria was promulgated in 1993 to facilitate speedy implementation of financial reforms under the national housing policy. The objective was to encourage the establishment of mortgage financial institution capable of mobilizing savings and facilitating greater access to loans in order to promote the achievement of the programme for shelter and housing by the government.

Primary mortgage institutions (PMIs) were considered as retail mortgage banks operating under operational and supervisory regulation of the Federal Mortgage Bank of Nigeria (FMBN). PMIs were motivated to encourage individual to open accounts with them and deposit regularly to save toward home purchase and mortgage of property. However, some Nigerian PMIs were engaged in direct construction and sales of house in order to enhance their profit margin. Many PMI's were further involved in consummation of larger transactions meant for the commercial and investment banking. This coupled with other challenges exposed the PMI's to severe risk that led to the non performance of the institutions. Nubi, (2006) confirmed this in his study findings that over 80% of PMI's were engaged in direct constructions and outright sale to buyers, 70% of the risk asset portfolio were short term facility granted to commercial trader and local purchase order financing (LPO) to contractors of government agencies. As a result of high default rate of risky financing, tight liquidity position in the financial service sector contributed to the decimal performance of the PMIs in the country.

Generally the primary functions of a bank (commercial, microfinance or mortgage) are collecting deposits from surplus customer and lend out to deficit client. The product/services of the bank are checking and saving account, debit and credit card, etc. The secondary functions of a bank includes: receiving payment for bills, money transfer (local and foreign), FOREX, financial advisory services, issuance of letter of credit, custodianship services, hire purchase and leasing, underwriting, demand draft, payment order, customer's bank's reference letter, instrument clearing and settlement, etc. The discussions on the various factors that enable organization's success on the primary and secondary activities/process add value to customers are discussed in the following paragraphs

1.7 Outline of the Study

The thesis would be presented in six chapters. Chapter one generally introduces the whole work. The chapter is made up of the background of the study; problem statement; research objectives, research questions of the study; significance of the study; scope of the study; and finally the outline of the study.

Chapter two basically discuss the literature review related to the concepts of the three (3) major constructs: organizational performance, BPR factors and Information technology (I.T) capability. The chapter would discuss about the organizational performance improvement methods, performance measurement, and then BPR factors, previous studies of BPR performance in banks and financial settings, different between this study and others,. IT capability concept, measurement and reason for applying resource-based view perspective as the underlying theory that supports performance of the organization.

Chapter three discusses the conceptual frame work of the study, which arises from the review of the literature, the direct and indirect relationship of the key constructs and proposed hypotheses of the research.

Chapter four discusses the research methodology employed in the study. It explains the research settings, sampling technique, strategy and method of data collection, instrument measures, validity and reliability of the data analysis of the study.

Chapter five would present the empirical results and test the hypotheses of the study. Some key findings from the hypotheses relationship would be described. Finally chapter six would provide discussion, conclusions, limitation of the study and suggestions for future research.