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Implication of Enterprise Resource Planning Systems Implementation in Public Institutions in Kenya: A Case of Communications Authority of Kenya

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dc.contributor.author Githiga, Michael Wagema
dc.date.accessioned 2018-11-08T07:50:38Z
dc.date.available 2018-11-08T07:50:38Z
dc.date.issued 2018
dc.identifier.uri http://erepo.usiu.ac.ke/11732/4088
dc.description A Research Report Submitted to the Chandaria School of Business in Partial Fulfillment of the Requirements for the Degree of Masters in Business Administration (MBA) en_US
dc.description.abstract This study was motivated by the high failure rate of ERP systems around the world after the implementation stage with most studies reporting failure rates of between 65% and 75%. Many developed countries public institutions have embraced Enterprise Resource Planning (ERP) with the aim of improving on the efficiency. Enterprise resource planning (ERP) system has been one of the most widespread business management systems, providing benefits of real-time abilities and appropriate communication for businesses and government owned public institutions. Drawing from the resource based theory of strategy with reflection on the competitive advantage and the different roles the stakeholders play in the value chain. The ability to create linkages among activities and departments in an organization is a source of competitive advantage, seamless cooperation and information flow throughout the value chain. The study investigated the implications of ERP implementation in public institutions, a case study of Communications Authority of Kenya (CA). Objectives were derived for the study on the implications of ERP implementation. The outcome can be applied in the development of a Strategy document to guide institutions in ERP adoption. The study used descriptive survey design to analyze data. This research design was suitable for the study as an aid in describing the objective of the study. The target population was executive and management staff of Communications Authority of Kenya with a sample of 91 respondents. Sixty-Eight (68) responses were received representing a 74% response rate. Data was cleaned and analyzed using SPSS and study employed descriptive statistics, factor analysis, path analysis and in structural modeling equation (SEM) to investigate the implications among variables and measure the strength and direction. Results indicated that, ERP system led to improved business processes and overall productivity improvement. However, to achieve desired productivity of enterprise systems, technical improvements and reduction of operational costs is required. Individual employee implications had a positive and significant standardized coefficient value (β=0.8969, T-value =37.5829, p<0.05) as indicated in table 4.10 and figure 4.3 and 4.4. This indicates that individual employee implications were a statistically significant indicator of implementation. Information-Quality and implementation had a positive and significant standardized coefficient value (β=0.8369, T-value =27.7004, p<0.05) as indicated in table 4.10 and figure 4.3 and 4.4. This indicates that information quality was a statistically significant indicator of implementation. Organizational Implications had a positive and significant standardized coefficient value (β=0.9757, T-value =209.0845, p<0.05) as indicated in table 4.10 and figure 4.3 and 4.4. This indicates that Organizational Implications is a statistically significant indicator of implementation. Based on the findings of the study, the following can be concluded: Implementation of ERP strategy is an important aspect of an organization’s continuity even in government sponsored institutions. ERP implementation in Communications Authority of Kenya was part of the organization’s corporate plan, for efficiency in its daily operations as well as transparency and accountability to the general public. During the implementation phase of ERPs, the management should include and involve the employees to enable them to become familiar with the system and its use as well as reduce resistance to the use of the system. The fundamental role of ERP systems is to make business operations easier and more efficient. The study recommends a match between the organizational processes and the ERP system for successful implementation. All stakeholders need to be involved and understanding of their expectations to be made clear in the initial stages of the project. ERP software should be localized to fit the user's requirements. The requirements usually depend on country, language, and cultural codes. en_US
dc.language.iso en en_US
dc.publisher United States International University - Africa en_US
dc.subject Enterprise Resource Planning en_US
dc.subject Systems Implementation en_US
dc.subject Public Institutions in Kenya en_US
dc.subject Communications Authority of Kenya en_US
dc.title Implication of Enterprise Resource Planning Systems Implementation in Public Institutions in Kenya: A Case of Communications Authority of Kenya en_US
dc.type Thesis en_US


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