Enterprise Resource Planning Systems Considerations And Implementation In State Corporations In Nairobi City County, Kenya

ABSTRACT 

Enterprise Resource Planning (ERP) was a computer application package that automated processes in a business institution to make them easy to use, and also played a critical role in finance functions, human resource functions, supply chain management functions, administration management, ICT functions and project planning functions. There had been wide usage of ERP system in developed countries, while unindustrialized countries were slow in implementing ERP systems. Problems arising during ERP use in companies ranged from poor retention of employees, inadequate training, insufficient testing and lack of adequate time for implementation which had consequently influenced ERP use in companies.The study sought to examine usage of enterprise resource planning systems in state corporations in Nairobi City County. The study observed the resource-based theory, the change management theory and the technological acceptance model. The research study attempted to explain how ERP characteristics, management support, expertise of employees and, user attitude impact on ERP implementation. Findings from this study would be useful to different levels of management, decision makers and procurement officers.The target population was all 796 employees from KPLC, KenGen, NBA and KICC from which a sample size of 343 was obtained using the Slovin’s formula randomly selected using systematic sampling method to obtain a representative sample from all the departments in each corporation. Data collection was done by dropping of questionnaires at the organizations and sending by email to each respondent, and letting the respondents fill them before the researcher picked them up, and received them back via email. The collected data was then be subjected to descriptive and regression analysis. Findings from the study revealed that all the four independent variables namely: ERP characteristics, user attitude, management support and employee expertise contributed positively towards influencing ERP implementation. The beneficiaries of this study were the management who were able to learn on the successful ERP systems considerations and implementations in their organisation. It was concluded that that characteristics of an ERP system, management support, employee expertise and user attitude influenced ERP implementation. It was recommended that all items in the independent variables should be enhanced within companies as they played a significant role in influencing use of ERP systems