Barriers to Adoption of Open-source Erps in Parastatals in Kenya; Case of Energy Sector

Abstract

Enterprise Resource Planning (ERP) Systems are not being fully utilized by Kenyan parastatals in the energy sector and other industries. While the expenses of implementing an ERP system have always been a concern for many businesses, Open-Source ERP systems are now accessible, providing the benefits of an ERP system at a lower cost. The main objective of this study is to identify the barriers to adoption of open-source ERPs in parastatals in the energy sector in Kenya. The study used qualitative research methodology. Data collection was done through content analysis, open-ended questions shared through online questionnaires and follow up through one-on-one interviews where responses were deemed unclear or incomplete. Using Technology–organization–environment (TOE) framework this study found that lack of skilled personnel, lack of management support, privacy and security, reliability and uncertainty and lack of organizational awareness are the barriers to adoption to open-source ERP systems in energy sector parastatals in Kenya. Therefore, from the results only technology and organizational factors hinder adoption of open-source ERPs in energy sector in Kenya. No environmental factor was identified to be hindering adoption of open-source ERPs in energy sector parastatals in Kenya. Open-source ERP vendors and OSS vendors in general can use this study as a starting point to find solutions to these barriers of adoption and enable energy sector parastatals in Kenya which are a strong pillar in Kenyan economy, adopt open-source ERPs and reduce their cost of operation. This research was however done only in energy parastatals in Kenya. It can be extended to other parastatals and private organizations in Kenya to enable them benefit from adoption of low cost open-source ERPs.