FACTORS INFLUENCING THE ADOPTION AND IMPLEMENTATION OF ENTERPRISE RESOURCE PLANNING (ERP) SYSTEM IN THE SMES SECTOR
DOI:
https://doi.org/10.47941/jbsm.95Keywords:
Organizational characteristics, internal factors, external factors, ERP systems implementation, SMEs.Abstract
Purpose: The purpose of this study was to investigate the factors that influence ERP systems adoption and implementation in SMEs in Kenya.
Methodology: The research adopted a descriptive design. The target population was 4560 SMEs in Kenya. A sample size of 87 SMEs was selected. The respondents were identified through probability sampling in the form of stratified sampling. The collection of data was conducted through the use of questionnaires and thereafter data coding was done then followed by data presentation via graphs, tables as well as pie charts. These were then analyzed through both descriptive statistics (frequencies and means as well as inferential statistics (correlations).
Results: The findings revealed that organization resources bring about success of ERP related organization change. The findings on the influence of internal factors on ERP system implementation revealed that indeed the internal factors influencing the adoption of ERPs in SMEs in Kenya include; the top management of SMEs, project team constitution as well as the above average knowledge requirements.
Unique contribution to theory, practice and policy: The study recommends that SMEs in Kenya need to put into consideration, continuous introduction of ERP systems. Additionally, the study recommends that the government regulations as well as the other external factors should be aligned in a way that ensures that there is room for companies to explore means of adopting and implementing ERP systems so as to be able attain sustainable competitive advantage.
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