Determinants of Adoption of Enterprise Resource Planning Systems by Listed Companies in Kenya
Nzuki, D. M.
Malonza, Gladys Nduku
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The adoption of Enterprise Resource Planning systems (ERP’s) has many business implications. The purpose of this study was to determine the factors determining adoption of ERP’s among listed in the Nairobi Securities Exchange (NSE) companies in Kenya. The specific objectives of this study were; to establish the organization characteristics that determine adoption of ERP’s, find out the ERP attributes that contribute to its adoption and to investigate the extent of adoption and use of ERP by listed companies in Kenya. The descriptive research design was used in this study and the sample size was the fifty five (55) companies listed at the NSE. Study data was collected using a questionnaire developed by the researcher and administered with the help of a trained research assistant. The data was analysed through SPSS software and results presented in percentages and frequencies through tables and figures. The results indicated that the size of the firm, number of employees in organizations, employee turnover, location, and type of ownership of the organization, age of the company, capital structure and familiarity with ERP tools influenced organizations adoption of ERP systems. ERP attributes like its complexity and compatibility, triability, Observability, relevance and interest within businesses for the adoption of the ERP systems led to the adoption of the system. The ICT environment aspects included hardware, software, people, the government, politics, the environment and innovation. These findings are relevant to the government in its implementation of the vision 2030 as well as to the companies listed in NSE.