Enterprise Resource Planning System and Performance of Rail Freight Operations in Kenya: a Case of Kenya Railways Corporation

Abstract

Many companies now use ERP systems to boost their efficiency. ERP installation, on the other hand, is difficult and expensive, and research on the impact of ERP investments on operational performance has so far been equivocal. This research aims at understanding the impact of ERP systems on the performance of freight operations in Kenya with an emphasis on the Kenya Railways Corporation. The study goals were to explore the extent of ERP usage at KRC and to explore the effect of four ERP modules (customer relationship management, financial management, order management, and human resource management) influence the performance of Kenya Railways Corporation rail freight operations in Kenya. Stakeholder theory, technological acceptance model, resource-based view, and constraints theory are the four theories that underpinned this research. Descriptive research design was adopted and the Kenya Railways Corporation employees who utilize ERP targeted. A stratified random sampling method was adopted in choosing the respondents from the target demographic and the resultant sample size was 172 employees. A questionnaire was used for collecting responses and the amassed data was analyzed using SPSS. According to the findings, ERP modules were employed at KRC to a moderately. The study output further indicate that all the four ERP modules under consideration has a statistically significant effect on the performance of rail freight operations at KR (p<0.05). The order management had the largest influence on rail freight operations followed by the human resources management module. Thus, this study is one among the studies that have established a positive influence of ERP on operational performance. The study ascertains that KRC’s management should further encourage the adoption of ERP modules among its employees to further enhance the performance of its rail freight operations. This could be done through training on the usability and usefulness of the ERP system and channeling more resources towards ERP implementation.