Factors influencing implementation of enterprise resource planning modal among dairy enterprises in Kiambu county, Kenya

Abstract

In recent years there has been an increase in using Enterprise Resource Planning (ERP) systems in large companies and government corporations mainly in developed countries. While there is wide adoption of ERP systems in Western economies, developing countries lag far behind. However, due to recent economic growth, developing countries such as Kenya are increasingly becoming major targets of ERP vendors. There is an urgent need for understanding ERP implementation issues in developing countries, as ERP systems are still in their early stages in these countries. They face additional challenges related to economic, cultural and basic infrastructure issues. This study provides some key insights into the implementation and use of ERP systems in the public and the private sectors in Kenya. The objective of the study was to establish how employee knowledge, organization culture, organization resources and stakeholder involvement influence the implementation of the ERP modal among dairy enterprises in Kiambu County. The study was carried out in three major dairies in Kiambu County, comprising the marketing, planning and development, ICT and production departments. Census technique was used to engage all the top and middle management in the selected dairies who are involved with ERP implementation. A questionnaire was used to collect primary data, the questionnaire comprised of both closed and open ended questions. Secondary data was collected through reading available material such as journals and books. The data was analyzed using descriptive and inferential statistics. The data analysis process was aided by a Statistical Package for Social Science (SPSS). The data was presented using tables. In regards to the employee knowledge, majority (81%) of the respondents had above diploma level of education and therefore they reported that they were able to utilize the ERP model in their organizations. Majority (98%) of the respondents agreed that some preparations were done before implementing the modals with citing organization need assessment as the main preparation practice done before ERP implementation. The study established that concerning the stakeholders involvement majority of the employees reported that majority of the stakeholders in the organization were involved in the ERP implementation. Majority were involved in offering technical expertise. Majority (48.9%) of the respondents were to a great extent satisfied with ERP implementation process while most respondents said stakeholder involvement helped in system modification in the last one year. The main resources required for implementation were financial related. Majority of the respondents reported that their organization had adopted customer oriented culture. Majority reported that ERP has helped in regulating production line and inventory database therefore improving the organization culture in terms of efficiency. The study therefore concluded that employee knowledge is a significant variable in ERP implementation. This means that the better the knowledge provided to employees the better the ERP implementation process. Similarly, there is a positive correlation between organization resources and the ERP implementation. Stakeholder involvement also has a positive relationship with the ERP implementation. Likewise, Organization culture has a positive relationship with implementation of ERP modal. On the basis of the findings of the study the recommendation are that the organization management must strive to improve employees’ knowledge that can be used in ERP implementation. This can be improved through training and proper orientation for new employees. This will ensure that all employees are conversant with the ERP modal used in the respective organizations. The shareholders must ensure that enough resources are allocated to the implementation process. Resources in terms of human and financial resources are crucial in strategic planning and implementation processes.