Effect of Business Process Reengineering on Performance of Oil Marketing Firms in Kenya

Abstract

Abstract The oil and energy sector is a crucial component of Kenya's economy, playing a pivotal role in powering various industries, transportation, and households. Understanding and enhancing the performance of oil marketing firms is vital for ensuring a stable and efficient energy supply, which is fundamental for economic growth and development. In the face of stiff competition and declining profitability, oil marketing firms are compelled to re-evaluate their operational strategies. Therefore, the purpose of this study was to determine the effect of business process reengineering on performance of oil marketing firms in Kenya. The specific objectives of this research were to analyze the effect of organizational restructuring, process redesign, employee training and development and technology adoption on performance of oil marketing firms in Kenya. This research adopted resource-based view theory, change management theory, organizational learning theory and dynamic capabilities theory. A descriptive research design was used in this research. The target population of the study was the 64 heads of strategy development in all the 64 oil marketing firms in Kenya. Census technique was used where all the 64 heads of strategy or their equivalent were involved in the study. The study collected primary data through questionnaires that were administered through Google forms and analysed using statistical package for social sciences. The relationship between dependent and independent variables was shown using correlation coefficients and a multiple linear regression model. The results were presented in tables followed by pertinent interpretation and discussion. The findings of the study revealed that all four variables organizational restructuring, process redesign, employee training and development, and technology adoption had significant positive effects on the performance of oil marketing firms in Kenya. Organizational restructuring had a significant effect, as did process redesign and employee training and development. Technology adoption had the strongest effect. The four variables combined explained a substantial portion of the variance in performance. Based on these results, the study concludes that strategic initiatives in these areas are crucial for enhancing firm performance. The study recommends that oil marketing firms prioritize organizational restructuring to align structures and processes with evolving business objectives and market conditions. Continuous process redesign should be undertaken to eliminate inefficiencies and optimize operations, supported by investments in relevant technologies. Furthermore, firms should invest in comprehensive employee training and development programs to enhance skills and productivity and strategically adopt new technologies to drive innovation and competitiveness.