IMPLEMENTATION OF ENTERPRISE RESOURCE PLANNING SYSTEM AND PERFORMANCE IN THE MANUFACTURING FIRMS IN NAKURU CITY COUNTY, KENYA
Abstract
This study sought to examine the implementation of Enterprise Resource Planning (ERP) system and performance in the manufacturing firms in Nakuru city county, Kenya. The following specific objectives guided the study: To determine the influence of top management support in the implementation of ERP by the manufacturing firms in Nakuru city county, Kenya; to find out the influence of user involvement and participation in the implementation of ERP by the manufacturing firms in Nakuru city county, Kenya. The study utilized the use of the following theories: Technology Acceptance Model, Diffusion of Innovation Theory, Resource Based View Theory and Theory of Technology-Organization-Environment. This study utilized the use of Descriptive research design. The target population for this study was 27 manufacturing firms within Nakuru City County. Structured questionnaires were used in the study to gather primary data. The study also applied the use of quantitative and qualitative data analysis techniques. Descriptive and inferential statistics were used to analyze quantitative data while qualitative data was analyzed thematically. The study concludes that top management support has a positive and significant influence on performance in the manufacturing firms. In addition, the study concludes that user involvement and participation have a positive and significant influence on performance in the manufacturing firms. Further, the study concludes that project team composition and competence have a positive and significant influence on performance in the manufacturing firms. The study also concludes that operating environment has a positive and significant influence on performance in the manufacturing firms. From the results, this study recommends that the management of manufacturing firms in Nakuru City County, Kenya should ensure top management support on adoption of various systems to enhance organizational performance. In addition, the management of manufacturing firms in Nakuru City County, Kenya should ensure regular staff training to equip them with the needed skills for system implementation.
Key Words: Implementation of Enterprise Resource Planning (ERP) system, top management support, user involvement and participation
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