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.