Business Process Re-Engineering and Organizational Performance of Savings and Credit Co-Operative Societies in the South Rift Region, Kenya

Abstract

Past studies suggest that Business Process Reengineering (BPR) is an important predictor of organizational performance. However, few studies have empirically examined the relationship between BPR and organizational performance in SACCOs. Therefore, the study sought to establish the relationship between BPR and organizational performance of Deposit Taking SACCOs (DTSs) in the South Rift Region, Kenya. The study was guided by the following objectives: to establish the relationship between business rebranding and organizational performance of DTSs; to determine the relationship between business innovation and organizational performance of DTSs; and to establish the relationship between Integrated Marketing Communication (IMC) and organizational performance of DTSs in the South Rift Region, Kenya. The study was guided by the force-field analysis theory and was based on the correlation research design. A census of 41 branch managers of DTSs in the South Rift Region constituted the sample size. Primary data was collected using questionnaires which were validated by research experts in the Department of Business Administration. A pilot study was conducted to help ascertain the reliability of the instrument. Cronbach’s alpha coefficient above 0.7 was considered acceptable. Data was analyzed using frequencies, percentages, means and standard deviation, Pearson’s moment product correlation analysis and simple and multiple regressions with the aid of the Statistical Package of Social Sciences (SPSS). The study found that BPR strategies (business rebranding, business innovation and IMC) were positively related to the organizational performance of DTSs in the South Rift Region. The DTSs had rebranded their logos, names, missions and visions to enhance performance. Innovative strategies have also been introduced in the DTSs to enhance performance. Diverse IMC strategies have been adopted to market the products and services of the DTSs. Hence, the combined relationship between business rebranding, business innovation and IMC and the performance of DTSs in the South Rift Region was significant. The findings are significant to policymakers, practitioners and scholars in helping to understand the link between BPR and the organizational performance of DTSs. The study recommends that the management of the DTSs in the South Rift Region should take advantage of the benefits presented by BPR strategies (business rebranding, business innovation and IMC) to enhance the organizational performance of DTSs. This study was limited to business rebranding, business innovation and IMC; therefore, similar studies on different BPR strategies should be conducted to promote the generalization of the results.