The Impact of Business Process Reengineering on Cost Reduction of International Business Operating in the Middle East

This study aims to demonstrate the impact of BPR in reducing cost in international business organizations by analyzing the impact of decentralization, re-engineering organizational structures, re-engineering human resources, industrial process technology, improving total quality standards, and value engineering. The study population includes all the international business organizations operating in the Middle East, with the condition that they operate in at least four countries. The results showed that there is a significant effect of all dimensions of BPR in reducing costs in international business organizations operating in the Middle East. When studying the impact of the dimensions combined, the moral effect appeared at each processes (decentralization, re-engineering of human resources and industrial process technology), while the moral effect did not appear in (rebuilding organizational structures, improving total quality standards, and value engineering). This does not negate the importance of the impact of these dimensions, but rather shows a disparity between dimensions in reducing cost, when studying its combined effect. The study recommends that organizations should adopt modern management accounting methods, including value engineering, in order to identify and enhance activities that add value to the organization’s operations, as well as identify and eliminate non-value adding activities, in order to reduce costs.