BUSINESS PROCESS RE-ENGINEERING AND OPERATIONAL EFFICIENCY OF COMMERCIAL STATE CORPORATIONS WITHIN NAIROBI COUNTY, KENYA.

Abstract

As Governments throughout the world consider the justification for owning and managing profit-driven enterprises, the conversation surrounding the internal efficiency of public sector entities has evolved into a topic of public concern. In light of the situation, the purpose of this study was to find out how business process re-engineering (BPR) impacts the efficiency of operational processes within commercial state corporations located in Nairobi County, Kenya. The study was guided by specific objectives: to assess the influence of senior management support on operational efficiency, analyze the impact of organizational culture on operational efficiency (OE), explore the effect of selecting a BPR methodology on operational efficiency, and probe into the influence of BPR strategic alignment on the OE of state-owned corporations in Kenya. The research was conducted on 36 commercial state corporations within Nairobi City County, Kenya. The research scope was restricted to four key variables: upper management support, BPR strategic alignment, choice of BPR methodology, and organizational culture. The investigation centered on commercial state corporations that operated during the period from 2019 to 2022. The resource-based perspective theory, systems theory, and organizational contingency theory were all incorporated into the study's theoretical framework in order to comprehend the theoretical underpinnings of the study variables. The census technique was applied using a cross-sectional survey study design because there are only 46 Commercial State Corporations in Kenya (n=46). Structured questionnaires were administered to gather quantitative data. Data analysis involved the use of SPSS version 24 for calculating descriptive statistics and Multiple Linear Regression analysis. The results show that the support of senior management, organizational culture, the choice of business process reengineering method and the alignment of business process reengineering strategies all have a positive impact significantly to the operational efficiency of state-owned commercial corporations (P < 0.05). The study's conclusions emphasize four critical recommendations for enhancing the OE of commercial state corporations. Firstly, securing unwavering top management support is paramount, as it

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significantly influences OE improvements. Secondly, fostering an organizational culture aligned with BPR methodologies is crucial for success. Thirdly, careful selection of the appropriate BPR methodology and diligent adherence to its steps are imperative. Lastly, aligning BPR initiatives with the overall organizational strategy is pivotal in eliminating superfluous processes and tasks. By heeding these recommendations, commercial state corporations can achieve substantial gains in operational efficiency, ultimately boosting their performance and competitiveness.