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Abstract

Information technology (IT) has always become as a critical tool for the execution of business strategy and a driver of business performance. With rapid changes in particular to the financial markets, IT capability seems to be the backbone to improve the business processes. Innovative banking services and personalized portfolio management are evolving as the market consolidates due to mergers and acquisitions of up-to-date strategy. As a result, the focus is no longer on cutting costs alone, but rather on simultaneously improving services to customers. Many companies attracted to adopt the Business process reengineering (BPR), as a major management approach that focuses on doing things in a better way in order to achieve a radical improvement on quality, speed, customer service, and reduction in cost. Number of studies suggested IT should be used together with BPR to develop the organizational capabilities which leads to superior organizational performance. Nevertheless, there are also views that IT is ubiquitous and cannot be a source of sustained competitive advantage. Hence, this paper interested to examine the role of information technology (IT) capability and business process re-engineering (BPR) implementation in the Islamic bank in Malaysia. Data has been collected through a hand-delivery method. A simple random sampling would be used for sample selection and sent to Islamic banks' managers. The expected outcome of this study would provide important insights to both managers and researchers for further understanding on the effects of BPR factors and IT capability on organizational performance of Islamic banks.