Enterprise Resource Planning Implementation Strategies and Success Among Oil and Gas Firms in Kenya

Abstract

The current business world requires the use of Enterprise Resource Planning so as to cut on cost and maximize profit. However, some firms that have embarked on establishment of ERP projects have not been successful. The failure may be linked to the Enterprise Resource Planning strategy. However, research establishing the role of ERP implementation strategy on the success of Enterprise Resource Planning is missing. This research investigates the intricate relationship between Enterprise Resource Planning implementation strategies and the success of ERP projects, with a focus on the oil and gas firms in Kenya. Employing principal component analysis, the study derived indices from observed indicators provided by respondents to determine the critical ERP implementation strategies influencing ERP project success. The study uses primary data collected from ICT managers of 80 firms in the oil and gas industry using structured questionnaire. The findings reveal that among the various implementation strategies, including Big Bang, Phased Rollout, Parallel, and Hybrid, these strategies emerged as pivotal determinants of success in ERP projects within the oil and gas industry in Kenya. This research contributes insights for practitioners and policy makers, emphasizing the importance of tailored ERP implementation strategies and challenging conventional assumptions about the universal significance of certain approaches. The identified determinants provide a foundation for organizations to make informed decisions, optimize their ERP implementation processes, and enhance overall project success. The study recommends the need for policy support for diverse implementation strategies. The policy makers ought to recognize the diversity of ERP implementation strategies and avoid promoting a one-size-fits-all approach. Encouraging flexibility and adaptation to the specific needs of organizations can lead to more successful ERP projects