THE EFFECT OF BUSINESS PROCESS REENGINEERING ON CUSTOMERS PERCEPTION OF SERVICE EFFICIENCY, RESPONSIVENESS, EFFECTIVENESS AND EQUITY IN COMMERCIAL BANK OF ETHIOPIA: THE CASE OF SELECTED BRANCHES IN ADDIS ABABA

Abstract

This study was designed to assess the relationship between customers’ perception on service efficiency, responsiveness, equity and effectiveness and the practice of business process reengineering (BPR) in commercial Bank of Ethiopia. A Sample of 465 was drawn from indefinite population and 264 responses were collected. Time location sampling techniques was used to conduct the study. Data collected from customer by using a structured questionnaire. Both primary and secondary data sources were used for the study. Descriptive statistics was employed to understand respondents’ level of agreement on factors affecting BPR. Besides, Pearson correlation and regression analysis were conducted to show nature of relationship between dependent variable and the independent variables. The result of descriptive statistics depicts that majority of the respondents agreed on factors under dependent and independent variables. However, still there is improvement areas that should be considered as a sizable number of respondents were among those who were disagreeing and indicating existence of grey area on each factors. The result of Pearson’s correlation reveals that, BPR has moderate positive relationship with: customer’s perception of service efficiency, Effectiveness, Responsiveness and equity. The findings of regression analysis portrays that, change in independent variables contribute to 59.7% variation in BPR. Hence if these factors taken into consideration, BPR can contribute to increase service efficiency and effeteness and prove existence of responsiveness and equitable service delivery system in CBE.