Factors influencing the implementation of Enterprise Resource Planning Systems: a case study of Kenya Medical Research Institute (KEMRI)

Abstract

Enterprise Resource Planning (ERP) system unifies an organization by providing a platform that allows seamless flow of processes from one department to another through an integrated system. The main goal of an ERP is to ensure that there is a central repository of information for an organization. ERP systems improves the efficiency of an organization through automated processes and workflows. Implementation of ERP systems is time consuming, involving, and an expensive affair. Previous studies have indicated that there is a high failure rate of ERP implementations and therefore organizations need to be aware of factors that can help improve the success of ERP implementation. This study aimed at analyzing factors that influence ERP implementations based on a case study at Kenya Medical Research Institute (KEMRI), using the Technology-Organization-Environment theoretical framework. This study employed descriptive survey research design. The data collection comprised semi-structure questionnaire administered as an online survey and face to face interviews. Stratified sampling targeted 318 employees who participated in the ERP implementation out of a population of 971 permanent staff. Data analysis was done through descriptive statistics to describe the distribution of the data collected. Regression and correlation analysis were used to examine the relationship between factors influencing ERP implementation and the success of ERP implementation. The significance of the regression model was tested by carrying out Analysis of Variance (ANOVA). The study revealed a positive correlation between the organizational factors (top management support, change management, project management and business process reengineering) technological factors (ICT infrastructure, Strong ERP product and technical expertise) and environmental factors (ICT Authority Involvement) and ERP implementation. The study recommended that the organizational factors, technological factors and environmental factors be well considered by the management of KEMRI as well as other related public institutions in Kenya for effective ERP implementation.