THE EFFECT OF ORGANIZATIONAL CULTURE AND GOVERNMENT REGULATIONS FOR BPR IMPLEMENTATION IN THE MANUFACTURING SECTOR OF PAKISTAN

Abstract

This study examines how internal and external factors affect the success of Business Process Reengineering (BPR) implementation in Pakistan's manufacturing sector, introducing two previously underexamined predictors – organizational culture and government regulations – alongside the mediating roles of organizational readiness for change and business strategy, and the moderating role of management commitment. Following a post-positivist, deductive, quantitative design, survey data were collected from 302 managerial-level respondents in manufacturing organizations across Pakistan using a 43-item instrument adapted from established scales. After data screening (listwise deletion of incomplete responses and removal of straight-line responses), 289 valid responses were retained for analysis. Because Mardia's test confirmed significant multivariate non-normality and the model combines reflective measures with conceptually formative-leaning composites, Partial Least Squares Structural Equation Modelling (PLS-SEM) was used, with 1,000-sample bootstrapping to test path significance. The results show that organizational culture had a significant positive direct effect on BPR implementation and a significant positive indirect effect through organizational readiness for change (partial complementary mediation). Government regulation showed a significant positive indirect effect on BPR implementation through business strategy, but a significant negative direct effect, such that the two effects offset one another – a suppression pattern indicating that regulatory pressure only translates into successful reengineering outcomes when it is actively metabolized into strategic action. Management commitment had a strong positive direct effect on BPR implementation but did not significantly moderate the relationship between organizational readiness for change and implementation success. The structural model explained 54.0% of the variance in BPR implementation. These findings refine the theoretical understanding of how internal culture and external regulation jointly shape reengineering outcomes and offer concrete guidance for manufacturing firms designing BPR initiatives under regulatory constraint.