Critical Factors For Enterprise Resource Planning Projects Implementation: A Case Of Insurance Sector, Kenya

Abstract

The purpose of this study was to investigate critical factors for enterprise resource planning projects implementation: a case of Insurance Sector, Kenya. The study was guided by the following research objectives: to determine how strategic factors influence the implementation of ERP projects in the Insurance sector in Kenya; establish how tactical factors influence the implementation of ERP projects; to determine how cultural factors influence the implementation of ERP projects. This study adopted a descriptive survey design to a target population of 48 Insurance companies in Kenya which are headquartered in Nairobi where a 10 percent sample size participated in the study. Simple random sampling technique was then employed to select the respondent companies based on the chosen sample. Purposive sampling was used to select one project manager from each of the sampled Companies as target respondents in the study. The researcher used a structured questionnaire to obtain primary data from the project managers drawn from the selected companies. The researcher used descriptive statistics to analyze data by utilizing means, modes and standard deviation as per the research objectives. Inferential statistics analysis was done to determine the strength between independent variables and dependent variables. The results of data analysis were presented in form of frequency tables for interpretation. The study found that strategic factors do influence ERP projects implementation in Insurance companies in Kenya. The study further found that tactical factors have influence on the success of ERP projects implementation. The study concluded that cultural factors influence ERP projects implementation in Kenya Insurance sector. The study concluded that there is a correlation between the strategic factors, critical factors and cultural factors for ERP projects implementation. The study recommended that there is need for planning and consensus to improve the success of ERP projects implementation in Kenyan Insurance sector.