The effect of enterprise resource planning systems on management accounting practices in Non governmental organisations operating in Kenya

Abstract

This study sought to investigate the effect of ERP systems implementation on management accounting practices in NOOs operating in Kenya. To accomplish this goal, the study was guided by a sole research objective; to establish the effect of enterprise resource planning systems implementation on management accounting practices in non-governmental organizations operating in Kenya. The study used a descriptive research design. The target population was all NOOs operating in Kenya which according to NOOs Coordination Board are 6,075 (2009). Non-probabilistic sampling methods such as purposive sampling and snowballing techniques were used to select a sample of 40 NOOs. The sample comprised of two equal strata; one consisting of NO Os with ERPs and another one comprising of NO Os without ERPs. Respondents were senior finance or accounting personnel. Primary data was collected using a closed questionnaire. This study concluded that ERP systems' implementations have a weak positive effect on management accounting practices in NOOs operating in Kenya. Evidence shows that ERP systems have reinforced traditional management accounting practices. The study has confirmed that ERP systems are weak in driving strategic oriented changes in management accounting. The evidence further suggests that there is a possibility of other variables that influence management accounting practices and which would be better analysed using longitudinal in-depth methodologies.