Enterprise Resource Planning Adoption and Performance of Selected Manufacturing Companies in Nairobi City County, Kenya
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Date
2024-07
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Kenyatta University
Abstract
This study aims to address the limited understanding of the factors that enable or challenge ERP adoption
beyond the initial implementation in manufacturing firms in Kenya. The study’s specific objectives are as
follows; to determine the influence of user satisfaction, systems infrastructure, ERP post-implementation
support and data security on the performance of manufacturing companies in Nairobi County, Kenya. The
study is guided by five theories: Technology Acceptance Model, ADKAR Change Model, Kotter’s Change
Model, Illusion of Control Theory, and the Cognitive Fit Theory. The study targeted a population of 1300 staff
from multiple departments in 40 selected manufacturing firms in Nairobi County who have had an ERP
system for at least 10 years. A sample of 130 respondents was utilized, with stratified sampling enabling the
random selection of ERP super users from different departments and various organizations. The findings
indicate that user satisfaction (β=0.326; p<0.05) and system infrastructure (β=0.132; p<0.05) both have a
significant effect on Performance of Manufacturing Companies. Similar observation was made with
Management Support (β=0.520; p<0.05) and data security (β=0.091; p<0.05) that they both have a
substantial effect on Performance of Manufacturing Companies. The study concluded that one of the most
important steps in improving an organization's performance is including its users in new ERP
implementations and adaptations. The study recommends that users in organizations need constant training
and involvement on matters related to ERP implementation in order to enhance performance.
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Citation
Kimani, E. N., & Waithaka, P. (2024). Enterprise resource planning adoption and performance of selected manufacturing companies in Nairobi City County, Kenya. The Strategic Journal of Business & Change Management, 11 (3), 319 – 335. http://dx.doi.org/10.61426/sjbcm.v11i3.3028