Effect of Business Process Re-Engineering on Performance of Agro-Processing Firms in Nairobi City County

Abstract

This study determined the effect of organizational restructuring, knowledge management, information technology capabilities and process monitoring on performance of agro-processing firms in Nairobi City County. The study used descriptive research design and the target population was all the 177 Agro-processing firms in Nairobi City County as registered with Kenya Association of Manufacturers. The study adopted a simple random sampling technique where 65 firms were selected. The study made use of both primary and secondary data where primary data was collected through questionnaires while secondary data was obtained from the financial statements of the firms. Before the actual data collection, a pilot study was conducted. Descriptive statistics was used to meaningfully describe the distribution of results as Pearson's coefficient of correlation was used to quantify the strength and direction of the relationship between the variables. Quantitative data was presented using instruments such as tables and graphs. Multiple regression analysis was used to analyze the relationship between the dependent variable and independent variables. The study findings indicated that jointly, organizational restructuring, knowledge management, information technology capabilities and process monitoring affect the performance of agro-processing firms. The findings indicated that 77% of change in performance of agro-processing firms can be explained by the four predictors, an implication that the remaining 23% of the variation in performance of agro-processing firms could be accounted for by other factors not considered in this study. The study recommended that agro processing firms should restructure their processes depending on their objectives. The findings that knowledge management improves an organization's efficiency and save knowledge within the company calls for agro processing firms to invest more on knowledge management. Further, agro processing organizations intending to carry out business process reengineering should invest in information technology tools and equipment and should adequately train their staff on how to exploit the ICT resources to bring down the cost of operations, enhance efficiency, increase the speed of operations and improve the quality of goods and services. Lastly, the study recommended for a periodic tracking of processes' progress by systematically gathering and analyzing data and information in agro processing firms.