A THESIS SUBMITTED TO THE SCHOOL OF GRADUATE STUDIES OF ST.MARY ‘S UNIVERSITY IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTERS IN BUSINESS ADMINISTRATION.

Abstract

The main objective of this study was to investigate effects of enterprise resource planning (ERP) system on organizational performance in MIDROC Gold. The research followed an explanatory research design as it explains the relationship between dependent variable and independent variables (used in the study. The target population for this study consists of employees who are working on ERP system in different departments at MIDROC GOLD. Eighty-one (81) respondents were targeted for the study and hence the same number of questionnaires was distributed. However, out of this number, 67 questionnaires were received. Out of which, 7 (seven) were carelessly or inappropriately filled and were therefore not used in the analysis making a response rate of 74%. The remaining 14 questionnaires were not returned back. Both descriptive and inferential statistics were used to analyse the data using SPSS version 20. Correlation was used to test the strength and direction of the relationship between the variables. Regression analysis was used to test the effect of the independent variables (ERP system) on dependent variable (organizational performance) and to test the hypotheses and the result had shown inventory management, information system, internal process and decision making positive and strong relationship with organizational performance and hence found to be identified as statistically significant factors which affect organizational performance. However, organizational business value and employee management had shown negative relationship with the dependent variable and thus found to have statistically insignificant effect on organizational performance. The researcher recommends MIDROC Gold to build on the ERP system practices (internal process, inventory management, and decision making and information system) and the organization is recommended to work hardly on the two variables/ERP system practices (organizational business value and employee management). Finally, other researchers should carry out research in other organizations that deployed ERP system as organizational business value and employee management unexpectedly have shown negative relationship with organizational performance.