An investigation into Enterprise Resource Planning Software adoption amongst firms listed on the Nairobi Stock Exchange

Abstract

Enterprise Resource Planning systems are being adopted by many organizations in Kenya and all over the world. Many reasons have been advanced as to why such adoptions are taking place. This research aimed at studying ERP attributes that make organizations adopt or reject them within companies listed on the Nairobi Stock Exchange. By applying Rogers theory of Diffusion of Innovations, the research aimed at finding out the adoption status in the NSE listed companies and help other organizations that may want to adopt ERPs have a rich insight on how to go about the adoption process.

ERPs are expensive, huge and complex systems that warrant careful planning and execution for successful adoption. This is because they affect how businesses conduct themselves. They also affect processes and peoples jobs within the adopting organizations. A census was done by surveying all the 47 companies listed on the NSE for this study. The study found out that adoption of ERP systems within the NSE listed companies generally agreed with Rogers theory of diffusion of innovations and that management support is paramount in ERP adoption or rejection. It is therefore important for organizations to note that before they think of adopting ERP systems, such organizations must ensure that there is support for the ERP project right from the people at the top within the given organization.