Determinants of Adoption of Enterprise Resource Planning Systems by Listed Companies in Kenya.
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Date
2013-08-27
Authors
Malonza, Gladys Nduku
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Abstract
The adoption of Enterprise Resource Planning systems (ERP's) has many business
implications. It has a major strategic implication on the companies listed at the Nairobi
Securities Exchange (NSE). The purpose of this' study was to determine the factors
determining adoption of ERP's among listed 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
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was used in this study. The sample size was the fifty six (56) 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 analyzed through SPSS version 17
software and results presented in percentages and frequencies through tables and figures. The
results also indicated that the size of the firm, number of employees in organizations,
employee turnover, location of the, type of ownership of the organization, age of the
company,capital structure and familiarity with ERP tools influenced organizations adoption
ofERP systems. ERP attributes were also shown by the study to influence its adoption to a
great extent in all the companies, the attributes that were found to determine the adoption of
ERP systems greatly were complexity of th.e E.RP system, compatibility of ERP, reliability,
Observability, relevance of the ERP while -increased interest within businesses for the
adoption of the ERP systems led to the adoption of the system to a very great extent amongst
the firms. According to the study results, the ICT environment aspect determined whether
firms adopted the ERP systems in the firms or not a considerably great extent these ICT
environmental aspects included the hardware, software, people, the government, politics, the
environment and innovation. These findings may be relevant to the government in its
implementation of the vision 2030 as well as to the companies listed in NSE. All stakeholders
and listed companies should put in place ERP systems to aid in their functioning.
Description
HD 30.28 .M3