Cloud Based Erps and Organizational Performance of Smes in Nairobi, Kenya

Abstract

This study sought to show the improvement of organizational performance through the adoption of cloud-based ERPs in the Small and Medium Enterprises (SMEs) in Nairobi, Kenya. The objectives were to establish the extent of adoption of cloud-based ERP functions, to determine the factors that affect adoption of cloud-based ERPs and to determine the relationship between cloud-based ERPs and organizational performance of SMEs in Nairobi, Kenya. The study used a descriptive survey. The primary data was collected using a questionnaire. The sample size was 40 SMEs in Nairobi using cloud-based ERPs. Out of the 40 questionnaires administered, only 30 were correctly and completely filled out. The response rate was 75% of the entire sample which was sufficient to carry out the analysis and a good representation of the SMEs using cloud-based ERPs in Nairobi. The study showed that the most commonly adopted functions of cloud-based ERPs were the Financial Management, Human Resource Management and Jobs and Resources management. The study also shows that the factors that greatly affect adoption are speed of access, loss of connectivity and efficiency in providing services. The study concludes that there is a relationship in improved organizational performance especially in accuracy of data processing, timely reporting and overall improvement in efficiency of the organization. Further research with a larger sample size of various categories of organizations will enrich the studies on cloud-based ERP adoption and improved organization performance.