| Abstract: | The critical importance of information and communication technologies (ICT) for the firms nowadays, and the big ICT investments they make, necessitate a deeper understanding of ‘how’ ICT affects business performance, through identification of the intervening mechanisms and variables in the relationship between ICT and business performance. This paper describes an empirical investigation of whether and to what extent Business Process Reengineering (BPR) has an intervening role in the relationship between ICT investment and business performance, based on firm-level data from 271 Greek firms. Using this data a Structural Equation Model (SEM), founded on the Cobb-Douglas production function, is constructed, which includes a multi-item construct for measuring the extent of BPR with high level of reliability. From this model it is concluded that BPR mediates partially the relationship between ICT investment and business performance. On the contrary, it is concluded that BPR does not have such an intervening role in the relationship between the non-ICT investment (in ‘traditional’ assets) and business performance. |
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Greek