Font Size: a A A

Influencing Factors And Empirical Study On The BPR Implementation Of Chinese Enterprises Of Equipment Manufacturing Industry

Posted on:2015-04-07Degree:DoctorType:Dissertation
Country:ChinaCandidate:Z G QiuFull Text:PDF
GTID:1109330467475106Subject:Management decision - making and information systems
Abstract/Summary:PDF Full Text Request
With the acceleration of economic globalization and informatization, market competition becomes more and more intensified. For enterprises, the pressure of competition and market situation has changed fundamentally:personalized demands and services of products have come to lead the market; market competition is developing from the tangible form to the intangible form and becomes more and more diversified. In order to keep the competitive advantage in the fast-changing market, enterprises need to improve the core competitiveness in the process of constant improving products and services. Chinese enterprises of equipment manufacturing industry are facing the dual pressure of reform, both from the internal and the external."Production-centered" operation mode is converting to the "demand-centered" mode. Life cycle of the new product is shorter and shorter. The difference in the demands of consumers is greater and greater. The proportion for the personalized and diversified demands increased. The globalized operation mode requires enterprises to have a quick response to the changes of the market. Enterprises have to improve management efficiency, reduce production costs and improve customer satisfaction to maintain the advantage in the fierce market competition.Manufacturing industry is the important and supportive part of the Chinese economic development. Equipment manufacturing, especially, plays a more and more important role in the national economy. Since1990s, developed countries such as America, have continued to launch the strategic objectives of "reviving manufacturing","returning to the manufacturing industry", and have moved some production sections of some multinational companies from China mainland to other Southeast Asian countries where human capital is relatively low. Chinese equipment manufacturing enterprises have to cope with the pressure of whether to be chosen by the developed countries like America as the capital, meanwhile, they also face the problems of domestic rising labor costs, tightening resource constraints, etc. All these problems affect the development of Chinese equipment manufacturing industry. In recent years, western developed countries have increased the intensity of investment in equipment manufacturing industry and introduced new policies and regulations and revitalization plan constantly, for example, American launched the "Advanced Manufacturing Partnership Program","National Robot Program","2009Rrecovery and Reinvestment Act","2010Manufacturing Promotion Law" and other relevant policies. What’s more, the under the guidance of the philosophy of "the patriotic economy" and "supporting the national maufacture", Chinese equipment manufacturing industry is suffering the unprecedented pressure. To revitalize Chinese equipment manufacturing industry, it is needed to rethink about business operation mode from the global strategy perspective. The government reports of recent years also repeatedly and explicitly mentioned that the key point for the present manufacturing industry development is to speed up the development of equipment manufacturing industry, improve its competitiveness of enterprises, promote informatization construction and structural reform of the enterprises.BPR is one of the most important management thoughts in1990s.It takes meeting customers’demands as the goal, rethinks business process fundamentally and reconstructs them radically. It is a series of reforms to reduce operating costs and enterprise redundant links, promote the core competitiveness of enterprises. BPR plays more and more important role in modern enterprise management practice and more and more enterprises in the world take implementing BPR as an effective way to enhance the competitiveness of the enterprises themselves, but BPR is the complicated system engineering. From the international and the domestic cases of implementation, the success rate is not high. The majority of the enterprises did not get the expected results and goals, and even suffered a great loss. Aiming at the problem of high risk and low success rate, and the research of China "nationalized" enterprises BPR implementation, from the perspectives of the life cycle theory, cognitive theory and trust theory, combining with the diffusion characteristics of BPR project and the implementation process, the dissertation puts forward the two stages theory of BPR, studies the BPR from the levels of "breadth" and "depth" and proposes a theoretical framework.Around the above problems, the main research contents of this paper are as follows:First, the dissertation analyzes the business model of Chinese equipment manufacturing enterprises from the perspective of the value capture, explores the value and the function of business model. This dissertation mainly discusses the structure system of commercial mode and its elements, analyzes effective ways and methods to enhance the core competitiveness of the commercial mode, and studies the differences in the management process between Chinese enterprises and foreign ones and the particularity in Chinese enterprises reforms.Second, the dissertation studies on the adoption of business process reengineering. Based on the research for the diffusion of innovation theory, cognitive theory and trust theory, this dissertation describes the characteristics of BPR project and the influences of internal and external factors for decisions of potential adopters. The key influencing factors for the adoption willingness are extracted from the technical, environmental and organizational levels. The theoretical research model is constructed. Through empirical analysis, the dissertation verifies what are the key factors influencing employees in Chinese equipment manufacturing enterprises to accept the business process reengineering. What’s more, the dissertation analyzes the effect and mechanism of them and puts forward corresponding strategies.Third, the dissertation studies on the key success factors of business process reengineering. This stage is mainly refers to the study for the implementation and integration process of business process reengineering, based on the stable understanding from the enterprise internal part. At first, through a comprehensive analysis, combining with the Chinese equipment manufacturing characteristics, the dissertation puts forward six key factors influencing the business process reengineering. Meanwhile, the dissertation describes the mechanism and functions of key success factors, constructs the evaluation index by the use of the balanced scorecard method, evaluates standards of successful business process reengineering from the financial and non financial aspects and constructs the framework of key success factors. Finally through the empirical analysis, key success factors and its influence is determined.Fourth, the dissertation studies the influence of situational factors for BPR of equipment manufacturing enterprises and analyzes the effects on adoption willingness and successful implementation in terms of different ownership, scale and management state of enterprises. The dissertation also puts forward the advice and methods for BPR in different situational factors. This part is studied generally due to the relatively less research for reference. This dissertation makes theoretical and practical contributions in the following aspects.First, from the perspective of value capture, the framework for business model of Chinese equipment manufacturing enterprises is constructed. Studies suggest that:business model is composed of one or more core elements, among which, they interact and interdepend, but in the final analysis, it is the integration between enterprise profit-realization mechanism and value-creation mechanism. From the nine aspects of value proposition, consumer target groups, distribution channel, customer relations, allocation of resources, core competence, partner network, cost structure and revenue model, the mechanism and functions of the elements constituting the business model of Chinese equipment manufacturing enterprises are discussed. The study finds that value proposition is the core business model. The main activities of business model is the value capture and value realization. Effective allocation of resources is an important means to enhance the core competitiveness of enterprises and supports the whole business activities. Business process reengineering (BPR) can effectively improve the enterprise’s internal resource allocation. Replacing "function" management with "process" management can solve the problem of improving enterprises’core competitiveness fundamentally, and the business process reengineering is the only way which must be passed to any reform.Second, the business process reengineering is a complex process system. Through the analysis of the previous research results, dissertation thinks that the enterprises’ business process reengineering should be implemented from the "breadth" and "depth" levels, and puts forward for the first time the "two-stage theory" for business process reengineering, namely business process’s planning and adoption stage, implementation and integration stage. Planning and adoption stage is mainly for business process reengineering in breadth, studies the key factors influencing the potential adoption willingness and their characteristics in the diffusion process. From the perspective of the effective promotion and fast diffusion, the dissertation analyzes the adoption behaviors and decisions of the potential adopters. The implementation and integration stage is mainly for business process reengineering in depth, studies the key success factors influencing business process reengineering of enterprises and their functions in the implementation process.Third, according to diffusion theory of E.M.Rogers (1983) and actors classification framework of Tomatzky&Fleischer (1990), the dissertation proposes a BPR adoption model based on the TOE framework, mainly from the levels of technology, organization and environment. The dissertation analyzes the features of BPR technology and influences of the enterprises’ internal and external environmental factors for the adoption behavior and their mechanisms, redefines and refines the measuring index of each dimension according to previous studies. Research shows that:the degree that BPR project diffuses in the internal is related to the technical characteristics. The relative advantage, compatibility and complexity of the BPR project in the technical level have a significant impact on the adoption willingness. Technical advantages and compatibility have a positive effect on the adoption of the BPR project while technical complexity has a negative effect on the adoption of the BPR project. This shows that the BPR project is conducive to the rapid spread and diffusion in the enterprise when with obvious technical superiority---the simple operations, and matched with enterprise values and experiences, and the potential adopters are more willing to accept this kind of innovation project.In the organizational level, study shows organizational centralization and participation of senior leaders have a positive effect on the adoption decisions while the information technology the ability has no significant effect on BPR adoption. This shows that high centralization mode of enterprise management and the high involvement of senior leaders in the BPR project help the fast diffusion of BPR project in the enterprise, and employees are more willing to accept the reengineering project which is approved by the leaders and strongly recommended by the enterprise. The information technology ability to has not a significant effect on BPR adoption, which also shows that as China’s reform and opening up, the enterprise employee’s computer ability and operation level has increased greatly, information technology skills have been the basic skills for ordinary staff.In the environmental level, competition pressure and imitation pressure have stimulative effect on BPR adoption while forced pressure and regulation pressure have no significant effect. This shows that the competition pressure and regulation pressure are the main reasons for enterprises to choose to implementate business process reengineering. When market competition becomes more intense, the stakeholders implementing BPR project have got the obviously increased income, potential adopters are more likely to adopt BPR project. The fact that forced pressure and regulation pressure have no significant effect on the adoption, shows that at the same time constraint ability for enterprises of the government and relevant departments drops. Enterprise can actually complete reforms independently according to the their demands and choose the valuable and strategic ones from the perspective of long-term development. This also shows that witch of enterprises from dependants to competitors in the process of Chinese economic reconstruction.Fourth, according to the views of Daniel (1961) on number of the success factors and Mei Shaozu’s (2003) thought of BPR, by using CSFs, the dissertation extracts the key success factors for the BPR project implementation in Chinese manufacturers, proposes a new BPR key success factors model and evaluation standard, analyzes the effects and functions of key success factors for BPR project. The study finds the key success factors for BPR are respectively enterprise strategy, business process management, information technology, organizational structure, personnel management and corporation culture. When enterprises master and use the six key factors effectively in the implementation process, the success rate inclines to improve, among which, organizational structure, enterprise strategic implementation and the application of information technology have the utmost influence. In addition, by using the Balanced Scorecard (BSC) concept, based on enterprise’s strategic objectives, from the financial and non-financial indicators respectively, the dissertation proposes the BPR success criteria, making up for the singleness for "process" evaluation and balancing both leading indicators and lagging indicators.Fifth, the dissertation explores influences of enterprises’situation factors for BPR adoption willingness and successful implementation in the dynamic environment. The results show that:different business states have obvious difference on BPR adoption willingness. This shows that, in different stages of enterprise development, adoption willingness is different as well. Enterprises in consolidation are likely to accept the enterprise business process reengineering while enterprises in crisis which are relatively weak to stand the risk of "reengineering" due to a lack of funding, human resources, would not like to conduct the full range of reengineering project of BPR or the like, in consideration of the stability. The scale of the enterprise has no significant effect on the adoption, which indicates that enterprises in different scales have the basically same adoption willingness. They have the almost same original intention for the prospect, purpose and significance of adopting the innovation, whether large enterprises or small ones. State owned enterprises are more willing to adopt BPR than private enterprises. According to the analysis, state-owned enterprises have long development period, heavy burden, management constrained by multiple sides and complex market competition, so they are more willing to solve practical problems through business process reengineering. Exploratory research by situational factors on the success of BPR, finds foreign-funded enterprises have the highest BPR implementation success rate while that of private enterprises is relatively low, which shows that necessity of research for the "localization" of the BPR. BPR thought comes from western countries and are more suitable for foreign enterprises. The BPR implementation of local enterprises should be adjusted appropriately and reconstructed based on "ontology" environmental background.
Keywords/Search Tags:Business Process Business Process Reengineering, Adoption motivation, key success factors, Success evaluation, Situation factors
PDF Full Text Request
Related items