Impact of Business Process Re-Engineering (BPR) Implementation on Customer Satisfaction in E-Commerce Companies

Impact of Business Process Re-Engineering (BPR) Implementation on Customer Satisfaction in E-Commerce Companies

Gutama Kusse Getele (University of Science and Technology Beijing, Beijing, China) and Arrive Tsitaire Jean (University of Science and Technology Beijing, Beijing, China)
Copyright: © 2018 |Pages: 12
DOI: 10.4018/JECO.2018100103

Abstract

The objective of this article is to analyse the implementation of BPR in e-commerce platforms by measuring the level of customer satisfaction. The issues tested involve: how customers perceive the BPR objectives in e-commerce platforms; time used for diverse transactions before and after BPR; awareness and usage of BPR services provided by e-commerce platforms; satisfaction about the e-commerce platform services after BPR; BPR impact on customers, employees and e-commerce platform performance; advantages of BPR in e-commerce platforms and; difficulties faced by the customers after BPR in the e-commerce platform. Primary data was used through a survey questionnaire on a random sample of 402 student customers of Taobao and JD.com. The results found that time saving is significantly positive on implementation of BPR; following customers perceived a better quality of customer service. The sample student customers perceived that the BPR has a greater impact on customers than on employees, as well as on the performance of a platform.
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1. Introduction

E-commerce companies are constantly striving to reduce their operational costs while continually developing their performance. In online shopping, customer support and price structure are the two major service quality factors that influence customer satisfaction (Ingy & Hazem, 2016). Therefore, the purpose of this is not only to decrease their costs, but also to satisfy the needs of their existing customers and attract new customers with the implementation of increasing numbers of management strategies. Business Process Re-engineering (BPR) is one of the ways in which e-commerce companies such as Taobao/JD.com can achieve this objective in a way that better supports the organisation’s goals and potentially reduces operational costs. In e-commerce retailing, website satisfaction and wasted time affect the purchase intentions of customers (Gudigantala, Pelin, & Eom, 2016). BPR is the fundamental and radical redesign of organisations within or between enterprises in a customer-oriented way.

Thus, BPR is a mechanism of reorganising a company’s method of management, as well as its internal and external organisational strategies. Jacalyn & James (1996) argued that BPR emphasises the reorganisation of how tasks should be completed, rather than focusing on getting quick results. BPR is a transformation towards the creation of value, and may help to improve business processes in order to innovate or create new products (Zigiaris, 2000).

However, BPR is a key form of intervention strategy which can achieve the objective of attracting new customers by improving the innovation capacity of an organisation, and the introduction of BPR into innovation strategy could reduce the operating costs of a company. In this situation, information technology (IT) plays a vital role in BPR activities in order to put more focus on customer satisfaction. Expanding IT supports re-engineering strategies (Chen, 2001). The improvement of IT infrastructure is more significant in e-business implementation drivers, while the CEO’s experience, implementation costs and competitive force do not play a vital role in e-business implementation decisions (Prodromos & Dimitrios, 2016). The purpose of BPR is to try to increase levels of customer satisfaction and make the creation of innovative products more efficient.

Customer satisfaction (CS) is defined as being when the consumer or user agrees or is contented with the efficacy of the products or services provided by an organisation, and when expectations are fulfilled. It can also be when the product or service that meets customer needs, in terms of factors such as quality, suitable pricing, and the life of the product, is gratifying, and furthermore creates trust between a company and its customers. Therefore, brand loyalty (BL) can be defined as when the customer is satisfied and thus becomes familiar with the brand. Beard R (2015), points out that CS is a business term that elaborates on the degree of how products or services offered by an enterprise meet or exceed a customer’s needs. Businesses that do not pay attention to CS will always fail in the market segment. The crucial issue here is how companies can satisfy their customers and gain the benefit of loyalty for their products or services in return.

This paper aims to analyse the challenges faced by businesses in the e-commerce market and customers through the influence of BPR. It can help firms to reorganise or redesign their products or services in order to attract more customers by meeting their needs. The results will help companies to make the right choice in their management business strategy to deal with their competitors.

In order to find literature to support this research, documents were gathered from the internet and pertinent information was gained by reading relevant manuals. Since the emphasis of this paper is on BPR and customer satisfaction, materials related specifically to business were evaluated. The literature focuses on meaningful business management tactics of re-engineering among organisations and vital assets of business ventures. The structure of the paper is as following: introduction which discuss the scope of the study, literature review which argues the existing study related to the study, methodology which define the approach of the study, results and analysis which show the findings from the experiment, discussion which interpret the results, implication and conclusion which discuss the recommendation to the future organization.

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