Business process reengineering: Is it relevant to the Islamic banks?

The emergence trends and the changing behavior of customers have led to the evolution of the Islamic finance. This has put high pressures for the Islamic banks to be competitive.The focus is no longer on cutting costs alone, but simultaneously improving services to customers. Owing to this fact, mos...

Full description

Bibliographic Details
Main Authors: Hasnan, Norlena, Razalli, Mohd Rizal, Ringim, Kabiru Jinjiri
Format: Conference or Workshop Item
Language:English
Published: 2017
Subjects:
Online Access:https://repo.uum.edu.my/id/eprint/23408/1/RC04.pdf
_version_ 1825804918005432320
author Hasnan, Norlena
Razalli, Mohd Rizal
Ringim, Kabiru Jinjiri
author_facet Hasnan, Norlena
Razalli, Mohd Rizal
Ringim, Kabiru Jinjiri
author_sort Hasnan, Norlena
collection UUM
description The emergence trends and the changing behavior of customers have led to the evolution of the Islamic finance. This has put high pressures for the Islamic banks to be competitive.The focus is no longer on cutting costs alone, but simultaneously improving services to customers. Owing to this fact, most banks have given special attention to the “processes” which able to produce values to the customers. One of the popular management tool, Business Process Reengineering (BPR), has been widely applied particularly in the manufacturing industries towards gaining significant improvement in organizational performances. Nevertheless, there is still lack of thorough empirical evidence of BPR impact on performance in Islamic bank services.It is still unsure whether BPR relevant and meaningful in enhancing the banks performance. Hence, this paper aims to explore the applications of the BPR factors in the Islamic banks and assess the effects towards the bank performance. Survey has been conducted on all banks and financial companies applied Islamic banking in Malaysia.The study received 65.6% feedback and successfully collected to be analyzed. . The overall result shows that the BPR factors and IT capability are able to influence overall performance of Islamic banking in Malaysia. However, for individually, the analysis using multiple regression analysis indicates that only Strategy alignment, Management Commitment, Information Technology (IT) Investment, Process redesign and Less Bureaucratic Structure have significant impact to performance of Islamic banking in Malaysia.The study provides meaningful insight for policy makers, banks practitioners and academicians on the bank performance enhancement.
first_indexed 2024-07-04T06:23:29Z
format Conference or Workshop Item
id uum-23408
institution Universiti Utara Malaysia
language English
last_indexed 2024-07-04T06:23:29Z
publishDate 2017
record_format eprints
spelling uum-234082018-02-15T06:54:29Z https://repo.uum.edu.my/id/eprint/23408/ Business process reengineering: Is it relevant to the Islamic banks? Hasnan, Norlena Razalli, Mohd Rizal Ringim, Kabiru Jinjiri HD28 Management. Industrial Management HG Finance The emergence trends and the changing behavior of customers have led to the evolution of the Islamic finance. This has put high pressures for the Islamic banks to be competitive.The focus is no longer on cutting costs alone, but simultaneously improving services to customers. Owing to this fact, most banks have given special attention to the “processes” which able to produce values to the customers. One of the popular management tool, Business Process Reengineering (BPR), has been widely applied particularly in the manufacturing industries towards gaining significant improvement in organizational performances. Nevertheless, there is still lack of thorough empirical evidence of BPR impact on performance in Islamic bank services.It is still unsure whether BPR relevant and meaningful in enhancing the banks performance. Hence, this paper aims to explore the applications of the BPR factors in the Islamic banks and assess the effects towards the bank performance. Survey has been conducted on all banks and financial companies applied Islamic banking in Malaysia.The study received 65.6% feedback and successfully collected to be analyzed. . The overall result shows that the BPR factors and IT capability are able to influence overall performance of Islamic banking in Malaysia. However, for individually, the analysis using multiple regression analysis indicates that only Strategy alignment, Management Commitment, Information Technology (IT) Investment, Process redesign and Less Bureaucratic Structure have significant impact to performance of Islamic banking in Malaysia.The study provides meaningful insight for policy makers, banks practitioners and academicians on the bank performance enhancement. 2017-10-30 Conference or Workshop Item PeerReviewed application/pdf en https://repo.uum.edu.my/id/eprint/23408/1/RC04.pdf Hasnan, Norlena and Razalli, Mohd Rizal and Ringim, Kabiru Jinjiri (2017) Business process reengineering: Is it relevant to the Islamic banks? In: 2nd International Case Study Conference (ICSC 2017), 30th-31st October 2017, Adya Hotel, Langkawi Island, Kedah, Malaysia.
spellingShingle HD28 Management. Industrial Management
HG Finance
Hasnan, Norlena
Razalli, Mohd Rizal
Ringim, Kabiru Jinjiri
Business process reengineering: Is it relevant to the Islamic banks?
title Business process reengineering: Is it relevant to the Islamic banks?
title_full Business process reengineering: Is it relevant to the Islamic banks?
title_fullStr Business process reengineering: Is it relevant to the Islamic banks?
title_full_unstemmed Business process reengineering: Is it relevant to the Islamic banks?
title_short Business process reengineering: Is it relevant to the Islamic banks?
title_sort business process reengineering is it relevant to the islamic banks
topic HD28 Management. Industrial Management
HG Finance
url https://repo.uum.edu.my/id/eprint/23408/1/RC04.pdf
work_keys_str_mv AT hasnannorlena businessprocessreengineeringisitrelevanttotheislamicbanks
AT razallimohdrizal businessprocessreengineeringisitrelevanttotheislamicbanks
AT ringimkabirujinjiri businessprocessreengineeringisitrelevanttotheislamicbanks