| Abstract: | The objective of this research is to examine the effect of Enterprise Resource Planning (ERP) Implementation challenges and opportunities on organizational performance at Ethiopian Steel Plc and independent variables such as opportunities of ERP implementation, challenges of ERP implementation, effective decision making and internal process. The research adopted mixed research design explanatory and descriptive method. Primary data were generated from 86 employees who were selected by using disproportionate stratified sampling design. Regression analysis was conducted to identify the factors that determine organizational performance. In the ANOVA analysis the result shows that there is significant relationship between ERP implementation and organizational performance. In the multiple linear regression analysis, the result found that all variables which are opportunities, challenges, decision and internal process had positive significant effect on organizational performance at Ethiopian Steel Plc. The R square value shows that 67.5% of variation in their performance was explained by the factors affecting the performance of the organization. Most of the respondents were satisfied since this system makes the work done more automated one, effective, save time and energy too by passing its negative challenges. ERP have many opportunities this also supported by the respondents. The opportunities include it decision making more effective, minimize time spent, increase level of useful information, have effective management system, effective flow of internal process, enhance performance largely, respondents had a very good view concerning opportunities of ERP implementation in Ethiopian Steel plc. They give positive effect towards the organizational performance. It is thus recommended that Managers of the organization should make interventions on the challenges of ERP implementation on organizational performance to improve the performance and thereby the performance of the organization. Based on the result of descriptive analysis found that the performance of organization is good by overpass challenges of ERP implementation problems |
