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Global Journal of Flexible Systems Management (March 2021) 22(1):55–73

https://doi.org/10.1007/s40171-021-00259-9

ORIGINAL RESEARCH

An Empirical Analysis of Impact of Organizational Strategies


on Critical Success Factors of Business Process Reengineering
Niraj Kumar Vishvakarma1 • R. R. K. Sharma2 • Anup Kumar3

Received: 24 March 2020 / Accepted: 10 January 2021 / Published online: 7 February 2021
 Global Institute of Flexible Systems Management 2021

Abstract This study empirically investigates the influence Keywords Business process reengineering  BPR scope 
of organizational strategies on critical success factors of Channels of communication  Organizational resistance 
business process reengineering (BPR) related to the scope, Organizational strategy
efficiency, effectiveness, direction of information flow, and
resistance to change during the BPR implementation pro-
ject. The study adopts the organizational typology propose Introduction
by Miller and Roth (Manag Sci 40(3):285–304, 1994,
https://doi.org/10.1108/01443570810867204) to categorize Business process reengineering (BPR) nowadays has
the organizations into three strategic groups (caretakers, become a buzzword for management and IT specialists.
marketeers, and innovators). For this study, the data have Hammer and Champy (1993a, b) defined BPR as ’a fun-
been collected from 131 organizations involved in BPR- damental rethinking and radical redesign of business
related activities. This study uses various statistical tech- process to achieve dramatic improvement in contemporary
niques like cluster analysis, principal component, and post critical measures of performance such as cost, quality,
hoc analysis, to analyze the collected data. The data efficiency, and speed.’ Davenport (1993) calls it a tool for
analysis shows an impact of organizational strategies on redesigning business processes and organizational archi-
BPR factors like scope, efficiency, and bottom-up commu- tecture to improve an organization’s overall performance.
nication. Moreover, there are also some factors where Talwar (1993) defines BPR as a process to redesign, refine,
organizational strategies do not play a significant role, but and streamline the organizational structure, operational
these factors are crucial for all the organizational strategy process, and value chain that creates and delivers customer
types. value. On the other hand, Petrozzo (1995) argued that BPR
required a restructuring of business procedure, corporate
structure, and information structures to achieve a revolu-
tionary change in company goods and services efficiency
(cost, price, time, and customer satisfaction). Lowental
& Niraj Kumar Vishvakarma
(1994) considers BPR an aggressive strategy to innovate
niraj@bhu.ac.in business processes and its structure to align the core
& R. R. K. Sharma
competencies. It helps to significantly boost efficiency in a
rrks@iitk.ac.in brief amount of time by making Davenport (1993) the root
& Anup Kumar
cause of improvements. Contrary to the TQM strategy,
anunewin@gmail.com which concentrates on increasing the organization’s per-
formance, productivity, and versatility (Goetsch and Davis
1
Institute of Management Studies, BHU Varanasi, Varanasi, 2016), TQM relies on continually develop the process to
India
meet customers’ requirements.
2
IIT Kanpur, Kanpur, India Zinser et al. (1998) proposed that diversified and
3
Institute of Management Technology Nagpur, Nagpur, India growing consumer demand and the rapid shift in the

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56 Global Journal of Flexible Systems Management (March 2021) 22(1):55–73

business environment were the leading causes of business The Objectives of the Study
process transformation. Similarly, Grey and Mitev (1995)
also argued that customers, competition, and technology RQ1: Does BPR vary in scope across the various organi-
require business process changes. BPR leads to innovation zational strategies?
for competitive advantages and advanced technology RQ2: Does the degree of improvement in process
(Archer and Bowker 1995). The essential explanations for effectiveness vary through the implementation of BPR?
BPR include cost savings and differentiation of goods. RQ3: Does the degree to which BPR implementation
Companies must combine all their operating operations and improves the process efficiency vary in organizational
function as a team to become a market leader to stay strategies?
competitive in the sector because the essence of competi- RQ4: During the BPR implementation project, does the
tiveness between firms requires sensitivity and versatility, degree of top-down flow vary in organizational Strategies?
and not just cost and price. To accomplish these goals, an RQ5: Does the degree of bottom-up information flow
organization has to overhaul its organizational structure. So vary across organizational strategies during BPR
the restructuring of the mechanism requires BPR to be implementation?
applied effectively. A successful BPR application entails RQ6: During BPR implementation, does the degree of
many threats and obstacles. Kohnen (1996) defined in resistance to change vary in different organizational
using BPR two forms of uncertainty: operational and strategies?
technological uncertainties. Organizational uncertainty is This article has adopted the proposed organizational
the fear that organizational culture can react to the changes, strategies by Miller and Roth (1994). It is a robust orga-
and technical risk is that the process change may not nizational strategy that considers different organizational
function. dimensions, such as structure, process, managerial control,
Many kinds of researches have been conducted to rec- and various capacities relating to its innovative, develop-
ognize critical success factors and failures in implementing ment, and distribution ability. It is a popular strategy for an
BPR. Based on our best knowledge, no research empiri- organization; more than 1300 research papers have cited it.
cally examines the importance of organizational strategies This typology of the organization uses the statistical
in the BPR implementation project. As far as we know, this method to classify the organization. The use of statistical
is the first article that gives a manager specific guidance for methods to classify the organization into different strate-
managing the business process project based on the orga- gies reduces the researchers’ subject biases.
nization’s requirements. Managers can use this research to The remainder of this article has the following structure.
determine which essential factors are the most relevant for A brief overview of the BPR and various organizational
the organization based on its strategy. This study allows strategies is provided in the first section. The second sec-
both the manager and the researcher to use it as a guidance tion explains sampling and data collection processes and
document to plan a BPR project that eventually minimizes data analysis methodologies in the field of research. The
the BPR project failure probability. Because of the find- research findings have been discussed in the third sec-
ings’ statistical support, the findings seem more logical and tion. Section four discusses the overall results and practical
acceptable to the practitioner. implications of the study. Furthermore, in fifth section,
Furthermore, the statistical analysis of the findings also limitations and future research directions are provided.
minimizes the subjective biases of the researches. Most of
the literature discussed the BPR implementation critical
success factors (ICSFs) is talking about in general. This is Background Literature Review
the first study that explores the degree of impact of various
ICSFs on organizational strategies. This study has first tried Business Process Reengineering
to find the reason based on the literature why this degree of
impacts are happening at various organizational strategies, In recent years, researchers (McKeown and Philip 2003;
and later it has tried to validate with data analysis empir- Zhao 2004; Boersma and Kingma 2005; Xenakis, Macin-
ically. This study explores how the organizational strate- tosh, and Centre 2005; Martin and Cheung 2005; Nguyen
gies impact the setting of BPR (efficiency, effectiveness, and Shanks 2009; Xin 2009a, b; Groznik and Maslaric
and scope) objectives, the flow of knowledge (top-down or 2010; Shen and Chou 2010; Lee, Chu, and Tseng 2011;
bottom-up), and the organizational resistance to change. Khodambashi 2013; McLean, McGovern, and Davie 2015;
Therefore, the following research questions (RQ) are Pattanayak and Roy 2015; Samiei and Habibi 2020) look
identified in this study. business process through the lens of information tech-
nologies (IT) and information systems (IS). Xin (2009a, b)
and McLean et al. (2015) studied the impact of IT-driven

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Global Journal of Flexible Systems Management (March 2021) 22(1):55–73 57

business processes in accounting, engineering, manage- et al. 2002; Salimifard et al. 2010). Besides this, top
ment of companies’ growth, e-commerce, and business management motivates the employee and creates friendly
process management; their studies find these factors have a interaction with the BPR implementation team (Dennis
positive association with BPR. Shen and Chou (2010) find et al. 2003).
that BPR is an essential foundation to ensure the success of Organizations need resources such as financial, techni-
enterprise information systems. cal, time, and human to implement BPR successfully. BPR
This study examines the relationship between BPR is a costly process requiring sufficient budget allocation to
implementation and the business performance of logistics implement changes and manage unforeseen circumstances
companies. This study finds that BPR companies outper- (Bashein et al. 1994). Reengineering activity requires all
form non-BPR companies in information processing, people in the organization, including top management,
technology application, and coordination of major logistic middle management, and line staff. Besides these resour-
applications. However, Khodambashi (2013) studies BPR ces, BPR’s success depends on the proper adoption of IT
in the context of healthcare information systems (HIS) infrastructure and time management (Kettinger et al. 1997).
implementation. This study investigates the application of Researchers (Proctor and Doukakis 2003; Kock et al. 2008;
BPR and its effectiveness in health care related to HIS. Ryan et al. 2008; Suman et al. 2009; Brandes and Darai
This study finds that the application of HIS affects 2014; Mitike 2015; Berk et al. 2016; Elias 2019) report that
healthcare delivery, including its clinical process. IT and business strategy must be aligned to ensure the
Critical success factors (CSFs) play an essential role in success of BPR implementation (Martinez 1995). If infor-
successful BPR implementation and organizational objec- mation technology and strategic planning are involved,
tives through BPR (Queiroz and Mendes 2020). Various there will be a growing need for operational flexibility and
authors have tried to identify CSFs of BPR, but these CSFs productivity in meeting institutionally defined goals. It has
vary from case to case as the aim of BPR projects varies. been observed that most of the difficulties and issues
Davenport and Short (1990) have identified four goals of associated with the introduction of data processing and
BPR: cost reduction, time reduction, output quality, and reengineering (BPR) for systemic reform in the state are
quality of work life. Burton (1993) identified BPR targets linked to the marginalization of knowledge technology and
as cost reduction, revenue growth, process streamline, and communication.
customer satisfaction. On the other hand, Stow (1993) has Mostly BPR projects are started by the IT department,
reported that the BPR project aims to improve the orga- where the information and IT infrastructure are the primary
nization’s effectiveness, efficiency, competitiveness, and resources organizations use to create competitive advan-
profitability. tage (Sabherwal and King 1991). It forces the organizations
Sarker and Lee (1999) identify three factors of failure of to acquire suitable enabling technologies (Barrett 1994),
reengineering in the US telecommunication company selection of appropriate IT architecture (Vishvakarma et al.
TELECO. They are leadership, communication, and IT 2015), proper information system integration, and adequate
knowledge and management. After examining more than sourcing of technology vital to successful BPR imple-
25 BPR cases, Maull et al. (1995) have identified six fac- mentation (Zairi and Sinclair 1995; Jacks et al. 2011). The
tors influencing the successful BPR implementation. They lack of preparation is crucial to the high rate of BPR fail-
are information technology, human, performance mea- ures. Research suggests a strategy to minimize the risk of
sured, process architecture, BPR strategy, and corporate business process reengineering (BPR) projects’ failure. The
strategy. Al-Mashari and Zairi (1999) have mentioned hard key factors were information technology (IT), top man-
and soft factors that cause BPR implementation’s success agement commitment, and collaborative work (Hussain
and failure. They have further subdivided these factors into et al. 2014).
six groups: change management, management competency Techniques for improving business processes such as
and support, organizational structure, project planning, BPR and TQM need to be successfully implemented by
administration, and IT infrastructure. various organizations. For the successful implementation
After a critical analysis of BPR implementation litera- of BPR, management driven by BPR needs a top-to-bottom
ture, we identify some essential CSFs for almost all the approach. Simultaneously, TQM is an approach driven by
BPR projects. They are top management support, the scope people and deals with internal problems. Consequently, a
of BPR project implementation, effective communication, bottom-up approach is necessary for the successful
leadership, resistance to change, etc. (Braganza and Myers implementation of TQM. Many BPR projects are cross-
1996). Top management support is the most crucial CSF in functional and require a flexible organizational structure to
BPR implementation. They have adequate knowledge of foster innovative creativity. Consequently, the successful
the organization and have the power to make strategic implementation of BPR requires less bureaucracy and more
decisions for the BPR implementation process (Crowe participatory teamwork. Organizational culture was

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58 Global Journal of Flexible Systems Management (March 2021) 22(1):55–73

recognized as a decisive factor in BPR’s successful 1960s has used many other terms such as policy making,
implementation (Michael Hammer and Champy 1993a, b). organizational behavior, and business administration, and
Successful implementation requires an innovative later strategic concepts over time replaced it. The strategy
organizational environment and professional organizational is a long-term goal and objective and a plan of action and
culture (Vishvakarma and Sharma 2015; Birasnav et al. the allocation of resources necessary for carrying out these
2019). Coordination of employee participation has prime goals of an enterprise. Grant (1991) has touted it as a match
importance. A strong corporate culture influences an between organizations’ internal strengths to the external
organization’s ability to adapt to changes and avoid stress opportunities and challenges. On the other hand, some
and reduce resistance to change. Culture contains belief authors have called it managers’ intension of gaining
that may not be relevant in the reengineered process. BPR competitive advantage (Porter 1985), testing internal
is a team-based method toward significant changes in capability within the organization’s boundary for future use
efficiency. Efficient BPR projects contribute to process, (Eisenhardt and Sull 2001; Markides 2004) and building a
quality, and cost breakthroughs (Hales and Savoie 1994). resource base (Barney 1991; Peteraf 1993).
Hence, the organization needs to adopt new values, man- The concept of strategy has multidimensional charac-
agement processes, and communication systems created by teristics; different authors have categorized organizational
newly reengineered processes. The critical success factors strategy differential based on the basis they have followed
(CSF) identified for BPR implementation are given in in classifying the organizational strategy. Miles et al.
Table 1. (1978) touted that every organization faces entrepreneurial,
engineering, and administrative issues. They propose four
Organizational Strategy Types organizational strategies: defender, analyzers, prospec-
tor, and reactors, based on how organizations solve the
The term ’strategy’ was first introduced by Chandler (1962) above issues. Based on the market competitiveness, three
in business corporations. The literature of the 1950s and organizational strategies are suggested by Porter (1980):

Table 1 Key factors for business process reengineering


SN Code Particulars References

1 CSF Reduction in lead time Hammer and Champy, (1993a, b), Hales and Savoie (1994) and Cameron
1 and Braiden (2004)
2 CSF Increase in return on investment (ROI)/profit Habib (2013), Ringim et al. (2013), Sungau and Ndunguru (2015) and
2 Kasim et al. (2018)
3 CSF Increase in product quality Soung-Hie and Ki-Jin (2002), Chiarini et al. (2006) and Qusef et al.
3 (2018)
4 CSF Increase in product innovation Gasston (1996) and Chen et al. (2004)
4
5 CSF Increase organizational efficiency Stow (1993), Martinsons, (1995) and Ringim et al. (2011)
5
6 CSF BPR ideas and communication from the bottom level of Proctor and Doukakis (2003), Tyworth and Sawyer (2006), Ryan et al.
6 the organization (2008), Kock et al. (2008), Suman et al. (2009), Brandes and Darai
(2014), Mitike (2015) and Berk et al. (2016)
7 CSF Encouragement of middle management and bottom-level
7 employee
8 CSF Lower-level employees have a significant impact on BPR
8 success
9 CSF Mainly directing, leadership style Sutcliffe (1999) and Hussain et al. (2014)
9
10 CSF (Instructive) indicating step by step what employees
10 should do, and keep close supervision of the
performance
11 CSF Resistance to change was significant Sayer (1998), Hanif et al. (2014) and Serban and Iorga (2016)
11
12 CSF Adaptation with the new procedure requires high time
12

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Global Journal of Flexible Systems Management (March 2021) 22(1):55–73 59

cost leadership, differentiation, and focus/niche strategy. hierarchical communication (Miller and Roth 1994; Vish-
Miller and Roth (1994) have given three types of strategy: wakarma et al. 2019).
caretakers, marketeers and innovators, based on the inno-
c) Innovators organizational strategy
vativeness and capacity development capability of the
firms. This classification is based on product innovation These organizations can make rapid design changes and
and competitive capability development. Zack (1999) has introduced new products quickly. Product performance,
proposed five organizational strategy types: innovators, conformance to quality, and dependability hold top priority
leaders, viable competitors, and laggard at risk, and he has for innovators (Vishvakarma and Sharma 2015; Vish-
considered a market penetration strategy as a classification vakarma et al. 2015; Khanmohammadi et al. 2019). They
criterion. Blue ocean and red ocean strategies are proposed carry limited product lines, a low degree of emphasis on
by Zack (1999). Kim and Mauborgne’s (2005) strategy is volume flexibility, and the price is considered the least
based on an organization’s strategic action where they are important factor for them. Other than these, they also focus
willing to compete in an established market or willing to on better after-sales services (Mondal et al. 2016; Vish-
create or explore an untapped market. vakarma 2016).
This paper adopts the organizational strategy typology We have identified variables mostly from Miller and
given by Miller and Roth (1994). The brief details of these Roth’s (1994) research to analyze organizations’ charac-
organizational strategy types are as follows. teristics. Variables are presented in Table 2; we called
these variables as strategic organizational variables.
a) Caretaker organizational strategy
Organizations following caretaker organizational strat-
egy types focus on cost-cutting rather than seeking new Theoretical Discussion and Hypothesis
opportunities and innovation. They focus on protecting its Development
market share, maintaining stable growth, and serving
existing customers. They choose a narrow product and Bhaskar (2016) has touted that BPR is now the best tool for
market domain for operation. They tend toward production improving quality and bring innovation. It has been
and distribution efficiency by implementing cost-efficient designed to enhance organizational performance and
and single-core technology, highly vertical integration, and quality to achieve a sustainable competitive advantage in
continuous improvement (Miller and Roth 1994; Vish- this global production era. The innovators are highly
wakarma et al. 2019). They ensure efficiency through focused on quality products, and they charge the premium
structure and processes called mechanistic organization price for their quality products, so innovators are more
structure. Here, the top management is highly dominated quality conscious while implementing the BPR. Miller and
by ’production and cost control specialist,’ ’high degree of Roth (1994) have discussed the innovators’ organizations
formalization and division of labor,’ ’less environmental have the highest priority on conformance to the product’s
scanning for new opportunities and intense focus on cost quality and durability. These organizations charge schem-
control,’ ’long looped and centralized controlled informa- ing pricing for their product quality. The organization
tion system,’ and ’hierarchical communication channels’ makes changes in its business process to increase product
(Miller and Roth 1994). quality. Based on the above discussion, the following
hypothesis can be proposed.
b) Marketeers organizational strategy
H1 Innovators have the highest focus, and caretakers
Generally, marketeers operate in a dynamic environ-
have the lowest priority, whereas the marketeers have a
ment to find and exploit the new product and market
moderate emphasis on increasing innovativeness during
opportunity, and they critically focus on product innovation
BPR implementation.
and market development. They used to have a broad pro-
duct line and continuously add new products or markets in Business process reengineering (BPR) was designed to
their operation domain to meet up with customer demands allow companies to be process-driven and customer-fo-
(Miller and Roth 1994; Vishwakarma et al. 2019). The cused. Customers demand lower costs and lower lead
marketeers heavily invested in market scanning to search times, which require increased operational efficiency
for new market opportunities. Marketeers focus on flexi- (Cameron and Braiden 2004; Kasim et al. 2018). Hammer
bility (Sushil 2001; Shukla et al. 2019; Evans and Bahrami and Champy (1993a, b) have discussed that the organiza-
2020), multiple core technologies, low-degree division of tions go for business process reengineering to minimize the
labor, and multiskill workforce. In these organizations, top cost, speed up the process, and improve the quality. It
management is dominated by marketing and research and means the organization’s objective to improve organiza-
development experts and has decentralized control and less tional efficiency, and it is essential for all the organizations

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60 Global Journal of Flexible Systems Management (March 2021) 22(1):55–73

Table 2 Organizational strategic variables


SN Variable Description References

1 STR1 Low price competition Miller and Roth (1994)


2 STR2 Competition on making a new product and quickly launching in the market
3 STR3 Competition on fulfilling fluctuating demand
4 STR4 Consistent, high-quality product and service competition
5 STR5 High product performance competition
6 STR6 Competition on quick delivery of product and services
7 STR7 Competition for better on-time delivery
8 STR8 Competition on providing better after-sales services
9 STR9 Competition on gaining market share by promotion and advertisement of products and services
10 STR10 Competition of providing a vast distribution network
11 STR11 Competition to offer a variety of products
12 STR12 Competition on new product innovation Vishwakarma et al. (2019)
13 STR13 Competition on gaining market share by introducing innovation and change
14 STR14 Competition on attaining industry leadership by product/process/service offering

irrespective of the strategies follow by the organizations. to the requirements of a specific organization. Only by
Miller and Roth (1994) have discussed the organization mounding a particular network or channel in a manner that
with an innovation strategy has the highest priority on satisfies the group’s specific criteria will effectively be
timely service and product delivery. In contrast, the care- accomplished (Belmiro et al. 2000). The organization
taker has the lowest emphasis, and the maketeers have a having the innovators strategy has participative decision
moderate focus on service delivery time, so the following making they allow the ideas to emerge from each level of
hypothesis has been proposed. the organization. Moreover, in contrast, the caretaker has a
high degree of centralization of control and a hierarchical
H2 While the organizations go for BPR, they focus on
structure of communication where decisions are taken. In
organizational efficiency irrespective of organizational
contrast, there is a balanced focus on both approaches
strategy types (innovators, caretaker, and marketeers).
(Vishwakarma et al. 2019). Based on the above discussion,
BPR is a management technique used to dramatically the following hypothesis has been proposed.
change organizations’ efficiency (Mathew et al. 2015).
H4 Innovators have the highest focus, and caretakers
Innovators have the fundamental characteristic to leverage
have the lowest focus, whereas the marketeers have a
the market opportunity as soon as they emerge. They are
moderate focus on bottom-up communication during BPR.
willing to take the risk and grow because the organizations
with caretaker strategies tend to avoid the risk. The inno- Output and business process orientation is a significant way
vators grab the new market opportunity through innovative of raising productivity and pace while reducing costs. Over the
products and being the first mover in the market (Chatterjee past few years, there has been growing value for independent
2014). The innovators heavily invest in their R&D to companies to see human capital as a tool and ability to ensure
become innovative. They charge a premium price for their versatility (Scherer and Zölch 1995). The successful imple-
innovation and uniqueness, so the innovators have the mentation of BPR requires monitoring and controlling the
highest focus on return on investment (ROI) (Vishwakarma BPR project’s progress tightly and accurately so that any
et al. 2019). Based on the above, the following hypothesis deviation in the process can be managed and corrected timely.
can be proposed. To accomplish these things, a strict and clear message is
required to send to all the organization employees, so it can be
H3 Innovators have the highest scope, and caretakers
concluded that clear and strict communication from top
have the lowest scope, whereas the maketeers have mod-
management is necessary to implement the BPR project in the
erate scope for improvement during BPR.
organization. It is compulsory for all the organizational
With the emergence of BPR, communication elements strategy types. So the following hypothesis can be proposed.
within operational improvements were given higher prior-
H5 While the organizations go for BPR, they have to
ity. Conventional communications strategies do not adapt
focus on top-down communication irrespective of

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Global Journal of Flexible Systems Management (March 2021) 22(1):55–73 61

organizational strategy types (innovators, caretakers, and performed or given BPR guidance, improvement of busi-
marketeers). ness processes. The survey instrument was a structured
questionnaire that we prepared by pertinent literature study.
Organizational transition management is a scientific
The survey was sent to the respondent’s target via email.
technique in a broad BPR project and art involving con-
The survey participants were the general manager, senior
sistent subjective evaluations. The organization does not
management, quality improvement manager, quality man-
neglect that reform attempts must be scientifically modu-
ager, project manager, functional architect, senior consul-
larized with critical stakeholders in clearly established
tant, and business analyst. A total of 152 responses were
practices (Mohapatra 2013). Hanif et al. (2014) have
received, and we left 131 valid responses after data
studied the impact of organizational resistance to change
screening.
on BPR Implementation. This study provides an insight
Most of the questions are calculated on a scale of five
into the factors that create organizational resistance to
Likert points in this study. We also conducted a Cronbach
change. The research indicates that human dynamics,
alpha test to verify the scale’s reliability and the results’
behavioral characteristics, and IT planning contribute
inner accuracy and delete some survey questions to
actively and substantially to BPR implementation. If there
improve data quality. Of all systems that are very satis-
is a good IT infrastructure available and the workers are
factory to survey-based analysis, our results’ cumulative
well educated in IT technologies, they do not exhibit much
reliability was found to be over 0.80.
reluctance and readily adapt. The organization having
innovators strategy has well-qualified and skilled employ-
Data Analysis Methodologies
ees who are willing to learn and implement them in the
organizational practices. In contrast, with care takes
A variety of statistical methods are used in this research,
approach has less skilled workers than the worker of
such as Cronbach alpha, k-mean clustering, discriminant
innovators’ organizational strategy, they fear job loss while
analysis, factor analysis, and post hoc data analysis meth-
process change happens. It makes the employees in the
ods/tools. The reliability of the data scale and internal
caretaker organization more resistant to change.
consistency were tested using Cronbach alpha. Cluster
H6 Caretakers have a high degree of resistance to change, analysis was used to classify the organizations into various
and innovators have the lowest, whereas the marketeers strategic groups, and discriminant analysis was used to
have moderate resistance to change during BPR. determine clusters’ internal descriptive statistics. Factor
analysis was used to reduce the dimension of critical suc-
A consolidated summary of the proposed hypothesis in
cess factors. For multiple comparisons of the mean dif-
this paper is given in Table 3.
ference, post hoc analysis was used. The following are the
short descriptions of these strategies.
Research Design a) K-mean Clustering
It is used when the number of clusters is fixed at the
Data Source and Sampling
beginning of the analysis. A similar case is with this paper.
There are three types of strategy groups, so k-mean clus-
We collected data from companies that have reengineered
tering is a suitable methodology to classify the organization
business processes to test these hypotheses. The question-
in different strategic groups. The same method had also
naire was circulated to businesses worldwide that had
been applied by Miller and Roth (1994). The clusters are
formed, such that intra-cluster variance is minimum, and
Table 3 Summary of the proposed hypothesis inter-cluster distance is maximum (Mok et al. 2012) at the
SN Hypothesis Caretakers Marketeers Innovators
significance level of 0.05 or less.
Let X = {o1, o2, x3, …on} be the set of n observed points
1 H1 L M H and each observed points are d-dimensional points. Let mt
P
2 H2 H H H = o2Ct nto be the centroid of cluster Ct, where C = {ck,
3 H3 L M H k = 1, …,K}, nt is the number of observation points in
4 H4 L M H cluster ct, and K is the number of clusters. The clustering is
5 H5 H H H done to minimize the variance within the cluster and
6 H6 H M L maximize the variance among the clusters. Then objective
In the above table, L, M, and H are representing low, moderate, and
function J(ck) of k means clustering is formulated as
high importance, respectively follows:

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62 Global Journal of Flexible Systems Management (March 2021) 22(1):55–73

X
JðckÞ ¼ ðmk  ckÞ ð1Þ This research uses DA to find the descriptive statistics of
ot2ck clusters which are formed by cluster analysis. Based on the
description and similarity of clusters to Miller and Roth
The objective of K-mean clustering is to minimize the
(1994) typology, the cluster has been given the name of
sum of the squared error over all the K clusters.
caretaker, marketeer, and innovators.
X
k X
JðCÞ ¼  ðmk  ckÞ2 ð2Þ c) Principle component analysis (PCA)
ðk¼1Þ ðot2ckÞ
PCA is a multivariate data analysis technique for data
reduction and separating useful parameters from the
redundant one (Jolliffe 2002; Nguyen and Reynolds 2009).
b) Discriminant analysis (DA) The orthogonal transformation can be achieved that con-
Ronald Fisher developed the discriminant analysis verts data into a new set of uncorrelated variables (prin-
technique in 1936. This technique is different from cluster cipal components) that explain the maximum amount of
analysis, and it is used when clusters and members of variance in original data (Astephen et al. 2008). It can be
clusters are already known (unlike cluster analysis). accomplished by representing the observations and vari-
Computationally, discriminant analysis and multivariate ables simultaneously for an optimal number of principal
analysis of variance (MANOVA) are very similar. In components (PCs). The components are extracted in such a
MANOVA, independent variables are groups, and depen- way that the first PC explains the maximum partition of
dent variables are the predictor variables, whereas, in DA, variance and subsequent PCs describe less variance in the
dependent variables are groups, and independent variables original data set (Lu et al. 2008; Zafiriou et al. 2012; Park
are discrete or continuous (predictor variables). et al. 2015; Onat et al. 2019). Before applying the PCA
The assumption of DA is similar to ANOVA/MAN- procedure, we have performed the Kaiser–Meyer–Olkin
OVA, and they as following. (KMO) test for sampling adequacy and Bartlett’s test of
sphericity for the non-interdependence of original data.
1. Multivariate normality: Independent variables follow
Ideally, the KMO value should be [ 0.60, and Bartlett’s
a normal distribution in each group.
test of sphericity should be significant (\ 0.05).
2. Homoscedasticity: The same variables are present in
In this study, we have collected several key BPR
each group, and they have almost similar variance
implementation factors from the literature. We have
across each group
applied factor analysis to divide these factors into con-
3. Multicollinearity: Ideally, it assumes that there is no
structs. The factors analysis result shows that KMO and
mutual interdependence between variables.
Bartlett’s test of sphericity is significant. This factor anal-
4. Independence: Respondents are assumed to be ran-
ysis divides implementation success factors into five con-
domly sampled, and one respondent’s response is not
structs: organizational effectiveness, organizational
affected by any other respondent.
efficiency, bottom-up information flow, top-down infor-
mation flow, and resistance to change. The pattern matrix
of analysis is shown in Table 4.

Table 4 Pattern matrix of BPR key implementation success factors


Critical success factors Effectiveness Efficiency Bottom up Top down Resistance to change

CSF1 .812
CSF2 .738
CSF3 .758
CSF4 .887
CSF5 .712
CSF6 .879
CSF7 .845
CSF8 .781
CSF9 .830
CSF10 .788
CSF11 .779
CSF12 .805

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Global Journal of Flexible Systems Management (March 2021) 22(1):55–73 63

The score of any construct has been calculated by taking Organizations with innovators strategy types have rela-
the average of the variables representing that construct. tively more scope for BPR implementation than marketeers
The BPR scope has been defined as the ability of an and caretakers strategy types. Post hoc analysis results in
organization to increase efficiency and effectiveness. The Table 6 reveal that BPR implementation significantly
scope of BPR has been calculated as the average of effi- increases the efficiency of the organization. There is a
ciency and effectiveness of BPR implementation. significant difference between the mean score of BPR
efficiency (C2 [ C3 [ C1; C2 [ C1**; C3 [ C1**)
d) Post hoc analysis
among all the organizational strategy type at 0.01 level of
In this study, Chi-squared statistics will not be a suit- significance. Innovator has the highest mean score for BPR
able measure to check the significant mean differences, as effectiveness. The scope of BPR is to increase the effi-
there are more than two groups of different sizes. The Chi- ciency and effectiveness of the organization. The Post hoc
squared method is suitable to compare the significant mean analysis result also reveals that the BPR scope significantly
difference between the two groups, so this study adopts (at 0.01 level of significance) differs among the three
post hoc approach. This method is used to compare the strategic groups (C2 [ C3 [ C1; C2 [ C1**; C3 [ C1**)
means between the multiple groups when they are of dif- and it is highest for innovator organizations.
ferent sizes. The post doc study is a way of comparing the The organizations with a higher degree of bottom-up
mean of different groups. It tests whether or not there is a information flow find it relatively easier to implement BPR
significant difference between groups. This method is than organizations with a higher degree of top-down
appropriate for this study because the size of the clusters information flow. Post hoc analysis results in Table 6 also
differs from one another. The hypotheses of this approach show that top down is not significantly different among the
were checked and are given in Annex 4. The presumption three organizational strategy types. Top-down information
that the results are distributed naturally is violated, and the flow is equally and highly crucial for all the organizations
variances are considered homogeneous. In such a case, the to implement BPR. In contrast, bottom-up information flow
Tukey HSD tests or the ship post hoc tests are suit- is significantly different among the different organizational
able methods for comparing all possible groups’ means. strategy types at the 0.05 level of significance. Innovators
Various means contrasts were made by Turley’s HSD and organizations have a significantly high degree of (C2 [
post hoc research in this report. Table 5 provides Turley C1 [ C3; C2 [ C3*) bottom-up information flow.
HSD performance, and Table 6 offers a post doc analysis.

Conclusion
Results and Discussion
The empirical analysis of data reveals that the scope of
The descriptive statistics of the clusters are presented in BPR implementation varies across different organizational
‘‘Appendix 1.’’ Moreover, the groups have been repre- strategy types. The summary of the proposed hypothesis
sented as alphabet C, I, and M (C = caretakers, I = inno- and their acceptance/rejection is presented in Table 7.
vators, and M = marketeers). The organizations in cluster The study finds that the organizations following inno-
’C’ have the highest emphasis on low-cost capabilities vator and marketeer strategy have more scope for BPR.
among all the strategy types. Other than the low-cost There is a significant difference in the scope of BPR
capabilities, this group of organizations focuses on other implementation in innovator and caretaker strategies. The
competitive capabilities compared to the other two strategy implementations of BPR give enormous scope to innova-
types. The organizations in the group ’I’ have the least tors to make their process more efficient. The research
emphasis on low-cost production, but have the highest found no significant difference in effectiveness, but it is
focus on other competitive capabilities to provide the crucially important to all organizations, whatever their
innovative product, offering large variety, and provide strategies. The average value of effectiveness is found to be
better after-sales services. The organizations in the group 3.45 on a scale of 5. It means that BPR’s core objective for
’M’ have a moderate focus on all the competitive capa- all the firms is to make the business process more effective.
bilities. For the group ’M’ organizations, low-cost leader- The paper has some other exciting findings that there is
ship, and innovation both are important. The stable market no significant difference in the flow of information from
adopts the caretaker strategy, and in an emerging market; top to bottom among different organizational strategies. In
they have innovators’ approach. The characteristics of contrast, there is a substantial difference in the flow of
clusters found from the data are very similar to the char- information from bottom to top across the organizational
acteristics of the organizational strategies discussed by strategy. The study also reveals that there exists a resis-
Miller and Roth (1994). tance to change in all the organizational strategies.

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Table 5 Difference test of cluster means for key BPR implementation factors
Dependent variable Mean difference (I–J) SE Sig. 95% confidence interval
Lower bound Upper bound

BPR effectiveness
Innovators
Marketeers .2653 .1290 .1033 - .0407 .5713
Caretakers .2667 .1402 .1420 - .0657 .5991
Caretakers
Marketeers - .0014 .1489 .9999 - .3545 .3517
Innovators - .2667 .1402 .1420 - .5991 .0657
BPR efficiency
Innovators
Marketeers .6746032* .1533 .0001 .3111 1.0381
Caretakers .5417480* .1665 .0041 .1469 .9366
Caretakers
Marketeers .1329 .1769 .7335 - .2866 .5523
Innovators - .5417480* .1665 .0041 - .9366 - .1469
BPR scope
Innovators
Marketeers .4699580* .1105 .0001 .2079 .7320
Caretakers .4042397* .1200 .0029 .1196 .6889
Caretakers
Marketeers .0657 .1275 .8640 - .2367 .3681
Innovators - .4042397* .1200 .0029 - .6889 - .1196
Bottom up
Innovators
Marketeers .3103 .1540 .1126 - .0548 .6754
Caretakers .4137816* .1672 .0387 .0172 .8103
Caretakers
Marketeers - .1035 .1776 .8297 - .5247 .3178
Innovators - .4137816* .1672 .0387 - .8103 - .0172
Top down
Innovators
Marketeers .3959900* .1651 .0467 .0046 .7874
Caretakers .2160 .1793 .4525 - .2091 .6412
Caretakers
Marketeers .1800 .1905 .6129 - .2716 .6316
Innovators - .2160 .1793 .4525 - .6412 .2091
Resistance to change
Innovators
Marketeers .2569 .1289 .1182 - .0488 .5626
Caretakers .3120 .1401 .0704 - .0201 .6441
Caretakers
Marketeers - .0551 .1488 .9273 - .4078 .2977
Innovators - .3120 .1401 .0704 - .6441 .0201
Caretakers .9184872* .1358 .0000 .5964 1.2406
Caretakers
Marketeers - .4766946* .1443 .0035 - .8189 - .1345
Innovators - .9184872* .1358 .0000 - 1.2406 - .5964
*The mean difference is significant at the 0.05 level

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Global Journal of Flexible Systems Management (March 2021) 22(1):55–73 65

Table 6 Post hoc analysis summary of panels


Cluster 1 (n = 42) Cluster 2 (n = 57) Cluster 3 (n = 32) F-test p value Cluster mean differences
Marketeers Innovators Caretakers

Panel 1: Business process reengineering


BPR efficiency
Mean 2.99 3.67 3.12 11.072 .000 C2 [ C3 [ C2; C2 [ C1, C3**
SD 0.77 0.75 0.74
BPR effectiveness
Mean 3.45 3.72 3.45 2.827 .063 C2 [ C1 [ C3
SD 0.55 0.71 0.59
BPR scope
Mean 3.22 3.69 3.29 10.761 .000 C2 [ C3 [ C2C2 [ C1, C3**
SD 0.41 0.64 0.51
Bottom up
Mean 3.63 3.94 3.52 3.711 .027 C2 [ C1 [ C3; C2 [ C3*
SD 0.71 0.78 0.78
Top down
Mean 2.93 3.32 3.11 2.920 .058 C2 [ C3 [ C1
SD 0.75 0.90 0.72
Resistance to change
Mean 3.52 3.78 3.47 3.224 .043 C2 [ C1 [ C3
C2 [ C3*
SD 0.67 0.62 0.61
C1 = cluster 1 (marketeers), C2 = cluster 2 (innovators) and C3 = cluster 3 (caretakers)
**The mean difference is significant at the 0.05 level
*The mean difference is significant at the 0.10 level

Table 7 Hypothesis acceptance/rejection summary


SN Hypothesis Caretakers Marketeers Innovators

1 H1 Accepted Accepted Accepted


2 H2 Accepted Accepted Accepted
3 H3 Accepted Accepted Accepted
4 H4 Accepted Accepted Accepted
5 H5 Accepted Accepted Accepted
6 H6 Rejected Rejected Rejected

Chatterjee (2014) reports that innovators/marketeers have Extensive literature is available to classify the facilitator
less centralization and encourage emerging new ideas from (Melão and Pidd 2000; Khong and Richardson 2003; Lee
every organization level. This study also reveals that et al. 2011; Weerakkody et al. 2011) and implementer of
organizations having innovator organizational strategy BPR (Rajala et al. 1997; Bhatt 2000; Votano et al. 2004;
types have a relatively high degree of bottom-up commu- Zhao 2004; Lee et al. 2011; Rao et al. 2012). A few studies
nication in BPR implementation. The research also shows a have been done to access the scope of BPR implementation
significant degree of change in resistance to change across in various industries, such as construction (Vakola and
different organizational strategies. This difference exists Rezgui 2000), health care (Khodambashi 2013), and the
because of the different organizational structures and banking industry (Khong and Richardson 2003).
division mechanisms followed by the organizations. Researchers (Cheng and Chiu 2008; Ostadi et al. 2011)
have discussed CSFs and BPR’s barriers in organizations.

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66 Global Journal of Flexible Systems Management (March 2021) 22(1):55–73

As far as we know, no such researchers have attempted to Despite a few limits, this research is precious and
develop the connection between BPR scope, resistance to deserving of attention for adequate theorization. This study
change, and information flow with business strategy types. examines Miller and Roth’s (1994) organizational strategy.
The novelty of this study is that it empirically validates Many other organizational strategies provided by
these relationships. researchers can be considered to study their effect on
This research adds significantly to BPR literature and implementing BPR in the future. This research considers
BPR practitioners. This research describes the scope of the essential performance factors relating to the BPR scope,
BPR for an organization. This study shows the link communication flow direction, and resistance to change. In
between BPR and some organizational variables, such as the future, the BPR should research critical success factors
the effect of organizational strategy, resistance to change, related to management control, corporate systems, culture,
and communication flow on the implementation of BPR. employee skill, and knowledge sharing.
The analytical study of such relationships provides a This research can be summarized in the SWOT
roadmap to BPR professionals and consultants. (strength, weakness, opportunity, and threads) in the final
In this study, the hypothesis H6 has been rejected. This concluding remark. This research’s biggest strength is that
hypothesis is related to resistance to change. In this this paper’s finding is entirely derived from a statistical
hypothesis, it has been hypothesized that caretakers find the analysis of the data. Because of the statistical analysis, the
most difficult to manage resistance to change than other chance of researchers’ subjective biases is minimum. This
organizational strategies. Still, this hypothesis has been research’s weakness is that the organization’s categoriza-
rejected by statistical data analysis in this paper. The tion into the different organization’s strategic groups is
research finding is against this hypothesis. The reason may based on its only single response. In the case of respondent
be that the innovators’ organizations have decentralized biases, the organization’s strategy type may be affected.
working processes in which managing the change may be This research provides many opportunities for future
difficult. The exact cause can be found by the in-depth studies. This research has considered the organizational
analysis of this research problem in the future. typology proposed by Miller and Roth (1994). In the
future, many other organizational typologies can be
examined. In this research, some threads show that this
Limitation and Future Research Scope research’s finding is based on statistical analysis in which
sometimes changes in high, moderate, and low level hap-
The research classifies organizations (caretakers, marke- pens at tiny differences. In case some changes occur in the
teers, and innovators) based on data collected by each sample size, some of the research levels may change.
company’s single respondent. The feasibility of studies
may pose questions about respondents’ bias, as every
institution has only one response. In comparison, a com- Funding No grant has been received for this paper.
plex term such as BPR can be the best interpreted using a Compliance with Ethical Standards
formal questionnaire and an interview process instead of
using data derived from the survey only. Another limitation Conflict of interest The authors declare that they have no conflict of
of this study that it has considered a few variables of the interest.
organization like the scope of BPR implementation,
direction of information flow, and resistance to change. Appendix 1
Many other variables affect the implementation of BPR in
See Table 8.
an organization, and they leave the scope for future studies
by considering other variables.

Table 8 Descriptive statistics of variables of organizational strategies


STR1 STR2 STR3 STR4 STR5 STR6 STR7 STR8 STR9 STR10 STR11 STR12 STR13 STR14

M 2.71 3.38 3.46 4.21 4.00 3.76 4.38 3.64 3.10 3.05 2.93 2.90 3.50 3.69
I 2.12 4.32 4.19 4.45 4.46 4.24 4.46 4.37 4.18 4.19 4.11 4.21 4.28 4.41
C 2.88 3.13 3.13 3.13 3.09 3.01 3.09 3.09 2.91 2.94 2.94 3.09 3.15 3.22
T 2.50 3.73 3.70 4.05 3.98 3.79 4.10 3.82 3.52 3.52 3.44 3.52 3.76 3.89
C = caretakers, I = innovators and M = marketeers

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Appendix 2

See Table 9.

Table 9 Descriptive statistics of research constructs


Descriptions
N Mean SD SE 95% confidence interval Min Max
Lower bound Upper bound

BPR effectiveness
Marketeers 42 3.45 0.55 0.08 3.28 3.63 2.50 5.00
Innovators 57 3.72 0.71 0.09 3.53 3.91 1.00 5.00
Caretakers 32 3.45 0.59 0.10 3.24 3.66 2.50 5.00
Total 131 3.57 0.64 0.06 3.46 3.68 1.00 5.00
BPR efficiency
Marketeers 42 2.99 0.77 0.12 2.75 3.23 1.00 4.00
Innovators 57 3.67 0.75 0.10 3.47 3.87 1.33 5.00
Caretakers 32 3.12 0.74 0.13 2.86 3.39 1.00 4.67
Total 131 3.32 0.81 0.07 3.18 3.46 1.00 5.00
BPR scope
Marketeers 42 3.22 0.41 0.06 3.09 3.35 2.50 4.00
Innovators 57 3.69 0.64 0.08 3.52 3.86 1.17 5.00
Caretakers 32 3.29 0.51 0.09 3.11 3.47 2.25 4.17
Total 131 3.44 0.58 0.05 3.34 3.54 1.17 5.00
Bottom up
Marketeers 42 3.63 0.71 0.11 3.40 3.85 2.00 5.00
Innovators 57 3.94 0.78 0.10 3.73 4.14 1.67 5.00
Caretakers 32 3.52 0.78 0.14 3.24 3.80 1.67 5.00
Total 131 3.74 0.77 0.07 3.60 3.87 1.67 5.00
Top down
Marketeers 42 2.93 0.75 0.12 2.70 3.16 2.00 4.50
Innovators 57 3.32 0.90 0.12 3.09 3.56 1.00 5.00
Caretakers 32 3.11 0.72 0.13 2.85 3.37 1.50 5.00
Total 131 3.14 0.82 0.07 3.00 3.29 1.00 5.00
Resistance to change
Marketeers 42 3.52 0.67 0.10 3.31 3.73 2.00 5.00
Innovators 57 3.78 0.62 0.08 3.62 3.95 1.50 5.00
Caretakers 32 3.47 0.61 0.11 3.25 3.69 2.50 5.00
Total 131 3.62 0.64 0.06 3.51 3.73 1.50 5.00
Total 131 3.21 0.74 0.06 3.09 3.34 1.33 5.00

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Appendix 3

See Table 10.

Table 10 Kolmogorov–Smirnov and Shapiro–Wilk test of normality


Tests of normality
Organizational strategy Kolmogorov–Smirnov Shapiro–Wilk
Statistic df Sig. Statistic df Sig.

BPR effectiveness
Marketeers .229 42 .000 .883 42 .000
Innovators .162 57 .001 .913 57 .001
Caretakers .217 32 .001 .902 32 .007
BPR efficiency
Marketeers .123 42 .111 .941 42 .031
Innovators .128 57 .022 .962 57 .068
Caretakers .152 32 .058 .950 32 .143
BPR scope
Marketeers .108 42 .200* .948 42 .055
Innovators .099 57 .200* .943 57 .009
Caretakers .108 32 .200* .972 32 .555
Bottom up
Marketeers .121 42 .131 .966 42 .237
Innovators .147 57 .004 .937 57 .005
Caretakers .218 32 .000 .939 32 .072
Top down
Marketeers .241 42 .000 .896 42 .001
Innovators .159 57 .001 .948 57 .016
Caretakers .278 32 .000 .898 32 .006
Resistance to change
Marketeers .187 42 .001 .940 42 .029
Innovators .235 57 .000 .895 57 .000
Caretakers .280 32 .000 .851 32 .000
*This is a lower bound of the true significance

Appendix 4

See Table 11.

Table 11 Test of homogeneity of variances


Test of homogeneity of variances
Levene statistic df1 df2 Sig.

BPR effectiveness 1.751 2 128 .178


BPR efficiency .111 2 128 .895
BPR scope 1.692 2 128 .188
Bottom up .355 2 128 .702
Top down 1.581 2 128 .210
Resistance to change .555 2 128 .575

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Appendix 5

See Table 12.

Table 12 ANOVA test


ANOVA
Sum of squares df Mean square F Sig.

BPR effectiveness
Between groups 2.277 2 1.139 2.827 .063
Within groups 51.543 128 .403
Total 53.820 130
BPR efficiency
Between groups 12.584 2 6.292 11.072 .000
Within groups 72.740 128 .568
Total 85.324 130
BPR scope
Between groups 6.356 2 3.178 10.761 .000
Within groups 37.802 128 .295
Total 44.157 130
Bottom up
Between groups 4.253 2 2.127 3.711 .027
Within groups 73.362 128 .573
Total 77.615 130
Top down
Between groups 3.848 2 1.924 2.920 .058
Within groups 84.325 128 .659
Total 88.173 130
Resistance to change
Between groups 2.592 2 1.296 3.224 .043
Within groups 51.454 128 .402
Total 54.046 130
Within groups 40.832 128 .319
Total 55.099 130
Within groups 58.239 128 .455
Total 69.478 130

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process re-engineering: A case study. Industrial Management & has received over 20 awards. His academic inter-
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https://doi.org/10.1108/14637159810212325.

Publisher’s Note Springer Nature remains neutral with regard to


jurisdictional claims in published maps and institutional affiliations.
Dr. Anup Kumar works as an Assistant professor
in the area of Operations and Business Analytics at
the Institute of Management Technology, Nagpur.
Dr. Niraj Kumar Vishvakarma is currently He is a learner and academician with over ten
working as Assistant Professor at the Institute of years of teaching, research, and industry experi-
Management Studies, BHU Varanasi. Dr. Vish- ence, of having worked at research, development,
vakarma is a Ph.D. from the Indian Institute of and faculty positions in institutions of repute. He
Technology Kanpur, India, and has a master of has multi-functional expertise in Operations,
business administration (MBA) and a bachelor of Analytics, Supply Chain, Administration, and Institution Building.
technology (B. Tech) degrees ABV-Indian Insti- This includes the experience of raising and deploying resources for
tute of Information Technology & Management setting up new ventures. He is an avid researcher, prolific writer, and
Gwalior, M.P., India. He has more than three years of experience in an academician of repute.
premier institutions. He is an outstanding researcher and has pub-
lished more than one dozen publications in international journals and
conferences. He has research interest in the Internet of Things,

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