Business Processes Re-engineering using Operational Risk Management to Improving the Competitive Advantage in the Iraqi Banking Sector

Authors

  • Falah Saleem Falih, Rozilah Kasim, Maryam Hamid Yaseen, Layth Salman Khalid, Mohammed Ihsan Ahmed Sabah

Abstract

Organizations have taken into consideration the rapid shifts in the business environment, which made them consider implementing various strategies to face fierce worldwide market competition. Such a competitive situation has become increasingly challenging for many organizations, in general, and particularly inbanks.

This study aims at proposing business processes re-engineering utilizing operational risk management to enhance the competitive advantage by evaluating the mediating function of Operational risk management in the association between business processes re-engineering and competitive advantage in the Iraqi banking sector.

A quantitative approach is used to obtain data from a survey (questionnaire) consisting of 60 items with a five-point Likert scale.

A total of 114 managers participated in the Iraqi banking sector in the study. (a 80.2% response rate).

The data analysis was conducted using Smart PLS 3.2.9. The findings of the path analysis of partial least squares (PLS) support variables in their hypothesized direct relationships with a competitive advantage. Operational risk management partially mediates the relationship between Operational risk management, Re-engineering of the business process, and competitive advantage. The paper advances several recommendations that can be beneficial for researchers to conduct further studies in this area as well as policymakers and managers in their efforts to enhance the competitive advantage of organizations in the future.

Keywords:Business Process Reengineering (BPR), Competitive Advantages (CA); Iraqi Banking Sector, Operational Risk Management (ORM).

Published

2020-07-30

Issue

Section

Articles