Managing Change for Radical Business Process Improvement: E ects onIslamic Banks Performance

Mohd. Rizal Razalli and Norlena Hasnan
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Mohd. Rizal Razalli: School of Technology Management and Logistics,Universiti Utara Malaysia, Changlun, Malaysia
Norlena Hasnan: School of Technology Management and Logistics,Universiti Utara Malaysia, Changlun, Malaysia

International Journal of Business and Economic Affairs (IJBEA), 2017, vol. 2, issue 6, 327-334

Abstract: Managing change is difficult as the change is constant. Organizational resources have to be wisely utilizedin optimizing the outcome of a change management project. The rapid rate of change has imposed many companiesto radically change to improve their current business processes. The banking industry is one of the main economicdrivers of any nation, and banks have been experiencing drastic changes in their operations. This paper examines thee ect of change management initiatives on the Islamic banks performance. The performance of Islamic banks di ersthan any conventional banks due to three main aspects, namely, (1) educating individual, (2) public interest, and (3)establishing justice. In this study, the organizational performance is measured by the cost spent by the banks to ful llthose three aspects. The causal relationship was analyzed using the Partial Least Square (PLS) structural equationmodeling. Collectively, the results show the signi cant positive e ect of change management on the performance of theIslamic banks. The ndings of the study contribute to the knowledge of change management to both managers as well asresearchers in relation to the banks performance.

Keywords: Business process; Bank performance; Islamic bank; Change management (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:aya:ijbeaa:2017:p:327-334

DOI: 10.24088/IJBEA-2017-26001

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