Influence of Business Process Re-engineering on Performance: a Case of Kenya Revenue Authority in Kenya

Abstract

The environment of the business is changing frequently and thus it’s so imperative for firms to adapt constantly their activities so as to be successful. Kenya Revenue Authority is faced with challenges of continuously improving its operations to meet the needs of its customers in a continuously changing operations environment; that is, applying the technique of reengineering its business processes to meet the core objective of increasing revenue collection at minimal cost. This study intended to establish the influence of business process re-engineering on the organization performance of Kenya Revenue Authority (KRA). The study was guided by the following objectives; to find out the influence of business strategy, organizational structure, organizational process, business information technology and organizational culture on the performance of Kenya Revenue Authority. The study was based on the systems theory. Descriptive research design was adopted in this study. The study target population was the KRA management. According to the KRA (2015), the staff level was about 1,634 employees in different management categories. A sample population of 311 was arrived at by calculating the target population of 1634 with a 95% confidence level and an error of 0.05 using the Nassiuma (2000) formula. The questionnaires were designed using open and closed ended questions. Primary data was collected using self-administered questionnaires by research assistants who were trained first on interviewing skills. The researcher and the research assistants personally administered the questionnaires. The drop and pick method were preferred for questionnaire administration to give respondents enough time to give well thought out responses. The data was analyzed with the aid of Statistical Package for Social Sciences (SPSS version 25). Descriptive statistics such as measures of central tendency and dispersion were considered the most appropriate for closed-ended questions while content analysis was used for open-ended questions where qualitative data was summarized into homogenous themes. Regression analysis was used to explain the influence of BPR on the performance of KRA. The study found that cost-efficiency is essential to modernization of processes and hence improves business performance to a very great extent. The study established that all the decisions made entirely to disseminate to the rest of the organization and responsibility and authority in the organization being vested in employees drive performance of KRA to a very great extent. The study found that operational process has a positive and significant influence on the performance of Kenya Revenue Authority. The study found that the organizational symbols and signs positively influence performance of the organization to a very great extent. The study also found that business information technology has a positive and significant effect on the performance of Kenya Revenue Authority. The study concluded that business strategy (0.882) had the greatest effect on the performance of KRA, followed by organizational culture (0.846), then business information technology (0.812), then operational process (0.799) while organization structure (0.633) had the least effect to the performance of KRA. The study recommends that it is important for an organization to undertake an analysis of the current situation for successful BPR implementation. Further, the study recommends that BPR must not ignore business culture and must emphasize constant communication and feedback.