Impact of IT on Process Improvement

There has been a lack of empirical research related to the role of IT in process improvement in a multidimensional way. The purpose of this paper is to investigate the extent that IT could be used (from low tech to high tech and constraint to proactive), type of process reengineering projects employed (compromise to radical) and their effect on firm performance. The firm performance was defined as market share, customer relationships Management, IT impact, and efficiency (as multifaceted such as lowering the cost, lowering the process variability, and lead time). Data from 108 small-to-medium sized organizations both in service and in manufacturing were collected for this study. Both Factor Analysis and MANOVA Analysis were employed to analyze these relationships and to find out the optimum points (interaction among the types of IT and types of BPR) and their effect on firm performance. ). The result showed that organizations that adapt high technology alone or BPR alone cannot achieve the same result and business performance as the organization that benefits from interdependency between IT and BPR.