Determinants of Enterprise Resource Planning Implementation by County Governments: A Case of Kiambu County Kenya

Abstract

Recently, there has been a tremendous application of Enterprise Resource Planning systems in large companies and also government institutions and corporations. In developed countries, due to overwhelming challenges that have emanated from the dynamic business environment and hence the need to adopt sophisticated and integrated technological applications off the shelf. Firms have adopted the ready-made information systems rather than their own. On the other hand, developing countries still drags in the adoption of this modern advanced technology, unlike the Western countries who have already gone far ahead. Implementation of ERP systems is essential to organizational functions across the supply chain management, human resource, accounting and finance and project management departments. This is because ERP creates a conducive platform to enhance efficiency and effectiveness in the overall productivity of an organization. This study, sought to assess the factors that affect implementation of ERP systems in county governments. This study therefore was guided by the following objectives; to establish how organization culture influence the implementation of ERP in the Kiambu County Government; to determine the influence of top management support on ERP implementation in Kiambu County Government and to establish how user training and development affect the implementation of ERP in Kiambu County Government. The study applied two theories; accountability theory and organizational culture theory. The study used descriptive research design. The target population was the head of departments and the employees of the human resource, accounting and finance, supply chain management, ICT, land, housing and physical planning. The target population consisted of 238 respondents and out of this the researcher obtained a sample size of 149 respondents. Stratified sampling technique and purposive sampling techniques were used to derive a sample. Data collected was analyzed through the use of a computer application SPSS. The study findings indicated that organizational culture (Beta = 0.310, Sig = 0.009) and top management support (Beta = 0.087, Sig = 0.035) positively and significantly affect implementation of ERP systems while the effect of user training (Beta = 0.138, Sig = 0.112) was positive but insignificant. Based on the findings that organizational culture has a positive and significant effect on implementation of ERP systems at Kiambu County, the recommends that the county government of Kiambu and other county governments need to create a conducive organizational culture that is highly ethic, with good values, procedures and policies which can support implementation of any new technology or policy. The study also recommends that based on the findings that top management support has a positive and significant effect on implementation of ERP systems at Kiambu County, Kiambu County and other counties in Kenya need to ensure that their top management supports organizational activities in terms of optimal resource allocation, activity rescheduling and employee motivation in order to realize a success in implementation of their programmes and policies. The study findings that user training has a positive but not significant effect on implementation of ERP systems at Kiambu County led to the recommendation that Kiambu county and other counties need to enhance user training by conducting more workshops, on the job trainings, seminars and field trips in order to realize the significant benefits of user competence when there is a need to implement a new technology in the organization.