Factors influencing implementation of enterprise resource planning in firms: a case of geothermal development company in Nairobi, Kenya

Abstract

Enterprise Resource Planning (ERP) systems have become common in large companies and government corporations mainly in developed countries. Over the past three decades, organizations worldwide facing pressure from changing business environments have adopted sophisticated, off-shelf information technology applications rather than build their own information technology systems in-house.While there is wide adoption of ERP systems in Western economies, developing countries lag far behind. Implementation of the ERP systems within organizations plays critical role in finance functions, human resource functions, supply chain management functions and project management functions of organization because it provides a platform for enhance deficiency and effectiveness in organization’s productivity. This study sought to establish the factors influencing the implementation of Enterprise Resource Planning in firms. The study was guided by the following objectives: To assess the influence of end user training on the implementation of Enterprise Resource Planning in GDC; To establish the influence of communication on the implementation of Enterprise Resource Planning in GDC; To determine the influence of top management commitment on the implementation of Enterprise Resource Planning in GDC and to find out the influence of organizational culture on the implementation of Enterprise Resource Planning in GDC. Descriptive research design will be used for the study. The target population consisted of 18 head of departments and employees of GDC. The sample size was a total of 265 respondents. Questionnaires were used as instruments for data collection. Questionnaires were used to collect data from the employees and the head of departments. Data was analyzed through the use of a computer software SPSS. Primary data from the field was edited first. Coding was then done to translate question responses into specific categories. Coding was expected to organize and reduce research data into manageable summaries. Quantitative data collected was analyzed by descriptive statistics while content analysis techniques will be used to analyze qualitative data. Descriptive statistics such as means, standard deviation, frequencies and percentages were used to describe the data. The analyzed data was presented in form of tables. The study also revealed that the feedback from the User Training was incorporated into the design and implementation of the ERP Modules. The study also revealed that there was no a communication plan among the different departments on the implementation of ERP. The study also revealed that that top management is necessary for provision of leadership in the implementation of ERP to a large extent. Finally it further established that organizational culture influences the implementation of ERP. The study concluded that end-user training affects the implementation of ERP. The study further concluded that failure to a communication plan among the departments affects the implementation of ERP.The study further concluded that top management involvement influences the implementation of Enterprise Resource Planning. It can finally be concluded that organizational culture influences the implementation of Enterprise Resource Planning.Major recommendations were end user training should be improved through organization workshops and seminars. Adoption of effective communication channels to reduce resistance from the employees and increase the implementation of ERP. Top management to increase their level of involvement and also organization culture to be flexible to accommodate the adoption of Enterprise Resource Planning. Areas for further research work included a study on the challenges facing the implementation of ERP