The impact of business process reengineering on organizational performance during the coronavirus pandemic: moderating role of strategic thinking

Abstract

Purpose

This paper aims to investigate the impact of business process reengineering on organizational performance in the Malaysian electronics manufacturing industry during the coronavirus pandemic. It also studied the moderating effect of strategic thinking on the relationship between these two concepts.

Design/methodology/approach

Data of 103 samples are obtained from a survey of the electronics manufacturing companies listed in the Federation of Malaysia Manufacturers’ directory. Data is analysed using partial least squares structural equation modelling.

Findings

The results show that business process reengineering dimensions, i.e. top management commitment, organizational readiness for change, information technology capabilities and people management have significant positive impacts on organizational performance; whereas organizational structure and other abovementioned dimensions were found to have a much stronger impact on organizational performance whilst strategic thinking exists in the organization.

Practical implications

As the studied firms have been affected by the pandemic, the results will be useful for managers of the firms in the Malaysian electronics manufacturing industry by highlighting the dimensions of business process reengineering that can have a positive and significant impact on the organizational performance and by advising them to incorporate strategic thinking.

Originality/value

The results extend the literature on business process reengineering dimensions, which impact organizational performance by empirically testing the relationship of those dimensions on the performance, with strategic thinking as a moderating variable in Malaysian electronics manufacturing companies. From the knowledge, studying strategic thinking as a moderator in the relationship between business process reengineering and organizational performance in electronics manufacturing companies in Malaysia is unique, especially during a global crisis, i.e. the pandemic.