Effects of Business Process Reengineering on Organizational Performance: Organizational Transformation of Tour and Travel Business

Abstract

This study aimed to analyze business process reengineering as an organizational transformation strategy and examine the relationship between business process reengineering and organizational performance intour and travel business in Makassar city. Business process reengineering is a process of redesigning workflows and business processes within an organization to achieve improved company performance the in the form of cost efficiency, improved quality, service, and speed. The method used in this study was of Partial Least Square (PLS) analysis obtained from questionnaire. The respondent swereem ployers of tour and travel business in Makassar city as many as 140 employers. The results show that business process reengineering is a strategy used in the organizational transformation. It is also found that there is a positive relationship between business process reengineering and organizational performance intour and travel usiness.