THE MODERATING EFFECT OF INFORMATION TECHNOLOGY INFRASTRUCTURE ON THE RELATIONSHIP BETWEEN BUSINESS PROCESS RE-ENGINEERING STRATEGY AND PERFORMANCE OF FOOD MANUFACTURING COMPANIES IN KENYA

Richard Nyaanga Ongeri; Peterson Obara Magutu; Kate Litondo

Richard Nyaanga Ongeri
Peterson Obara Magutu
Kate Litondo

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 the
study, 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 explained by
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.