Business Process Re-Engineering and Profitability in the Nigerian Oil and Gas Industry: The Mediating Influence of Operational Performance
The aim of this study was to operationalize and test a conceptual model to measure the effect of
Business Process Re-engineering (BPR) implementation on profitability in the Nigerian oil and gas industry.
Based on a framework from Al-Mashari and Zairi, these objectives were achieved using the following
procedures: reliability and validity analysis, factor analyses (exploratory factor analysis-EFA and
confirmatory factor analysis-CFA) and Structural Equation Modelling (SEM). The model contrived therefore
confirmed the positive influence of BPR on profitability, as well as the mediating influence of operational
performance in the Nigerian Oil and Gas industry. Specifically, the structural model shows the positive effect
of organizational structure and IT Infrastructures on both profitability and operational performance.
However, SEM failed to establish the relationship between management competence and support and
profitability. The study is expected to enhance the adoption and successful implementation of BPR
programmes in the oil and gas industry.
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