Moderating effect of information technology infrastructure on the relationship between business process re-engineering strategy and performance of food manufacturing companies in Kenya

Abstract

The main objective of the study was to evaluate the moderating effect of information technology infrastructure on the relationship between business process re-engineering strategy and performance of companies manufacturing food in Kenya. A descriptive cross-sectional survey design was adopted in data collection and analysis. Primary data was collected from respondents using a structured questionnaire, while secondary data was collected from published firm’s reports. Out of the 75 respondents targeted by thestudy, 44 responded forming 56.67% response rate, which was considered adequate for analysis with good representation from all the subsectors. On hypotheses testing, it was established that 64.6% of variations in the overall firm performance are explainedby variations in the BPR strategy, information technology infrastructure and product variable between BPR strategy and information technology infrastructure (IT Budget*BPR Prototype). The alternate research hypothesis was therefore supported. In conclusion, the study established that information technology infrastructure positively and significantly moderates the relationship between BPR and performance of companies manufacturing food in Kenya.The results therefore support the anchoring resource advantage and resource based theories. This study has contributed in different areas including implications to theory, policy, management practice and methodological contributions. The managers should pay attention to information technology infrastructure in implementing BPR strategy for improved overall firm performance and service delivery. Lastly key methodological contribution is the use of a quantitative composite index in computing the firm performance index, the use an integrated empirical model to test the relation between BPR strategies, IT infrastructure and performance.