Enterprise Resource Planning Implementation And Organizational Performance In Kenyan Energy Sector Parastatals
Abstract
Enterprise Resource Planning (ERP) systems utilization have been limited to few large
companies in Kenya and specifically to commercial oriented parastatals, for instance
Kenya energy ministry parastatals which have adopted information systems as a tool to
improve efficiency and effectiveness, visibility and transparency. ERP projects are capital
intensive and whereas different companies adopt different methods while implementing
ERP systems, they undergo many challenges and overcoming these challenges determine
the level of success of the project. The measure of critical success factors and the extent of
an ERP implementation in an organization are necessary to determine the success of the
project. The extent is determined by the number of ERP modules deployed, level of
integration with existing systems and collaboration between business units. This study
focused on the impact ERP implementation to the organizational performance in the
Kenyan energy sector parastatals. The objectives of this study was to determine the extent
of ERP implementation, establish the factors affecting the successful implementation of an
ERP system, and to determine the impact of ERP application on organizational
performance of Kenya energy sector parastatals. Questionnaires were used to collect data
from ICT managers, administrators and functional staff in four Kenya energy sector
parastatals and analysis was done using frequency and percentages, means and standard
deviations, then regression analysis. The results were presented in tables and charts. The
results indicate that most of the Kenyan energy sector parastatals have not implemented
ERP systems extensively and that it is imperative to adhere to the critical success factors
for a successful ERP implementation as this affects the number of modules that are
deployed. The study established there is a relation between extent that an ERP is
implemented to the organizational performance of companies in Kenyan energy sector
parastatals.
Citation
Degree Of Master Of Business Administration, 2014Publisher
University Of Nairobi