THE EFFECT OF ENTERPRISE RESOURCE PLANNING (ERP) SYSTEM ON ORGANIZATIONAL PERFORMANCE AT SHEMU PLC.

Abstract

The relationship between ERP system and organizational performance as well, effect of ERP system and organizational performance were not evidently identified and well recognized at SHEMU PLC. The main purpose of this study was to examine the effect of ERP system on organizational performance. The study adopted mixed research approach and from inferential research design, specifically correlational research design was employed. For this purpose, a sample of 123 employees was draw through stratified random sampling technique and 11 divisional managers and deputy CEO drawn through purposive sampling technique. Selfadminister questionnaire and interview guide were used to gather data. The collected data was analyzed by using SPSS-Version 22. Both descriptive and inferential statistics was used for the data analysis. The descriptive statistics such as frequency, percent, mean and standard deviation were used for describing the demographic characteristics of respondents and the whole perception of respondents on relationship of dependent and independent variables. The inferential statistics like Pearson correlation and simple linear regression were used to show the relationship between independent and dependent variables. In addition, to determine the effect of independent variable (ERP) system on the dependent variable (OP). The findings of the study indicated that, ERP system has positively and strongly correlated and claimed statistically significant relationship in organizational learning, decision making, Supply chain management, inventory management and customer relationship management on organizational performance. finally, the study recommends that internal process, information System, organizational business value, employee’s management and also, they should enhance different aspects of organizational performance. As a result, it enables to cultivate the benefits from ERP system.