Do business process reengineering projects payoff? Evidence from the United States

Abstract

This paper examines whether implementation of business process reengineering (BPR) projects improve firm performance by analyzing a comprehensive data set on large firms in the United States. The performance measures utilized in the paper are labor productivity, return on assets, and return on equity. We show that firm performance increases after the BPR projects are finalized, while it remains unaffected during execution. We also find that functionally focused BPR projects on average contribute more to performance than those with a broader cross-functional scope. This may be an indication that potential failure risk of BPR projects may increase beyond a certain level of scope