International Journal of Innovative Research and Development

Abstract

Enterprise resource planning system has been one of the most popular business management systems, providing benefits of real-time capabilities and seamless communication for business in large organizations. However, not all ERP implementations have been successful. Since ERP implementation affects entire organizations such as process, people, and culture, there are a number of challenges that companies may encounter in implementing ERP systems. Without proper infrastructure layout, change management, training and adequate stakeholder involvement, implementation of ERP will not have a lot of hindrance. Generally, the study focused on analyzing the challenges of implementing ERP in organizations with specific area being Moi International Airport. The general objective of the study was to examine the challenges of implementing enterprise resource planning, and the specific objectives of the study was the examine the effects on employee knowledge on implementing enterprise resource planning, to examine the effects of organizational resources on implementing enterprise resource planning, to examine the effects of stakeholder’s involvement and to examine the effects of organizational culture on implementation of enterprise resource planning. A review of the literature was done so as to give information needed to show what exactly is being investigated. A conceptual framework clearly showing the variables from research objectives was used in the study. The target population was totaling to 1,353personnel from which sample size of 136 was randomly selected from the sampled departments. The researcher used stratified sampling from the sample population to achieve the desired representation from various divisions within MIA. Questionnaires, interviews and observations were used to gather the required information on the four variables being studied. Questionnaires and interviews were used to collect data in the study. Data was analyzed through statistical package tool called SPSS and findings presented through tables. On gender the majority of respondents were male. On education level, the majority of respondents have graduate degree.  Majority of respondents have worked for between 6-10 years. Majority of respondents are aware of enterprise resource planning and the organization has embrace it to a fair extent. The preferred mode of training staff is through in-house workshops and the training to a fair degree focuses on enterprise resource planning. The top management commitments contribute to a fair extent on implementation of enterprise resource planning. On resources availability lack of resources such as finance technical skills and human resource affect greatly implementation of enterprise resource planning. Lack of stakeholder’s involvement hampers implementation of enterprise resource planning and organizational culture as well hinders how enterprise resource planning can be achieved. The coefficient of determination was 52.9% and the Pearson coefficient of correlation between the dependent variable and independent variables was 0.135, 0.235, 0.575 and 0.575 for employee knowledge, organizational resources, stakeholder’s involvement and organizational culture respectively. The study recommended that internet should be uninterrupted and that all corporations should embrace change management in order to achieve implementation of enterprise resource planning.

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