Assessment of the Effect of Enterprise Resource Planning on Performance of Organizations within the Agro-processing Industry in Kenya: A Case Study of KTDA factories in Bomet County
Koech, Geofrey Kimutai
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A lot of organizations have adopted and implemented enterprise wide information systems which can be summarized in the term Enterprise Resource Planning (ERP) systems. An ERP system can be characterized as an information system made up of different modules, each supporting the business processes. Enterprise resource planning (ERP) systems affect organizations and are implemented to enhance organizational effectiveness. However, ERP implementation is complex, costly and the research to date on the results of ERP investments on organizational performance have been inconclusive. The primary objective of this study is to assess the relationship between Enterprise Resource Planning (ERP) and organizational performance in the KTDA managed factories in Bomet county. Furthermore, in the light of the aforementioned considerations in the field of enterprise systems, the present study will explore the factors that determine a successful ERP system implementation and organisational performance. The study is also beneficial to companies in other sectors of the economy that may be willing to take advantage of the benefits of ERP in line with organizations strategic decision making. The study will enable them to perceive the best way to approach the subject. The study will be beneficial to researchers, academicians and students pursuing the subject in that it offers valuable insight and a basis for further research. This study is a descriptive research that will employ a case study research design. This is because the study intends to obtain an in depth understanding the impact of enterprise resource planning on organizational performance in the tea processing industry. The target population of this study will include managers and senior staff of production, information technology and human resource departments of KTDA managed factories in Bomet County. A total of 603 respondents will be targeted. Since the study‟s unit of analysis is at the organization or firm level, the researcher will sample viewpoints of key organizational informants, including senior and mid-level executives from both the business and technological (IT) part of the organization. Both descriptive and inferential statistics will be used to analyze the data. Descriptive analysis will be conducted on primary data. Mean and standard deviations will also be used as measures of central tendencies and dispersion respectively. Data will be presented in the form of frequency distribution tables, graphs and pie charts that will facilitate description and explanation of the study findings.