Adoption of Enterprise Resource Planning Systems in Kenya: A Case of Selected Manufacturing Firms in Nairobi Metropolitan

Abstract

Although the manufacturing sector in Kenya faces low productivity levels, stiff competition and high production costs, firms are still using inefficient technology. Enterprise Resource Planning (ERP) system can enhance efficiency through integration and sharing of business processes in real-time. This study was done to determine factors that influence ERP adoption among corporate members of Kenya Association of Manufacturers (KAM) that operate within the Nairobi Metropolitan. Questionnaires were administered to 141 KAM members whereas 17 ERP firms were interviewed. Logit model was used to estimate the influence of the factors on ERP adoption. Organizational composite factor was found to be an important factor, whereas the planned change, business environment and ERP attributes factors were weak predictors of ERP adoption. The findings will benefit scholars, government, vendors and users of ERP system. Further research was recommended to investigate the weak factors.