Factors Influencing End Users Acceptance of Enterprise Resource Planning Systems: A Case of International Livestock Research Institute (ILRI)

A Project Report by Pauline W. Gikemi, Submitted to the Chandaria School Of Business in Partial Fulfillment of the Requirement for the Executive Master of Science in Organizational Development (EMOD).This study was conducted to investigate the factors influencing end users acceptance of Enterprise Resource Planning systems. The aim of the study was to answer the following research questions: ‘what are the internal factors influencing end-users acceptance of Enterprise Resource Planning Systems?’, ‘what are the external factors influencing end-users acceptance of Enterprise Resource Planning Systems?’ and what management strategies should be implemented to enable end-users acceptance of Enterprise Planning Systems?’ The research used a descriptive research approach. Stratified random sampling design was applied as the population was not homogenous and was divided into sixteen strata/departments. Structured questionnaires were used as the data collection method. Research procedure used was self-administered questionnaires which were administered via both hard copies and online survey. The data compiled from the questionnaires from the respondents was analyzed using statistical methods using SPSS software. Frequencies and percentages were presented in graphs and tables. The Pearson correlation test was used to find the correlation between the variables. The results were interpreted and conclusions made thereafter. The study revealed that internal organization factors influenced acceptance of ERP implementation. These factors included: top management commitment, clarity of goals, management of organization goals, reorganization of business processes, user involvement in the ERP, appropriate and timely education and training of employees, open and continuous communication, competency of the project management team and effective project planning. The study revealed that external factors influenced acceptance of ERP implementation. These factors included competent external consultants to train users, provision of support by the vendor and accuracy of data analysis. The study found that most of the respondents were of the opinion that staff engagement to establish their fears about the ERP system was the major factor that would enable management to overcome end users resistance to ERP implementation. Other respondents were of the opinion that enhancing staff engagement to establish their expectations about the ERP system, provision of timely feedback from staff to the project management team, obtaining support for the project from opinion leaders and linking objectives of the ERP system to achievement of the organizations strategic goals were factors that at a great extent influence implementation of ERP. The study recommended the need for ILRI management to capitalize on its internal organization strengths so as to be able to leverage on them in order to enhance ERP implementation, especially in cases where such internal factors relate to employees. It also recommended the need for all stakeholders to engage in consultative talks so as to have an agreement on how to deal with external factors that affect end-user acceptance of ERP implementation. The study recommends the need for additional studies to be done on factors influencing end-user acceptance when it comes to ERP implementation. Such studies should focus on other sectors in the economy. Additionally there is need to conduct longitudinal studies to see if the results were different from the findings in this study