Factors Influencing Adoption-Use of Open Source ERP by Deposit-Taking Saccos in Kenya

Abstract

The deposit taking saving and credit cooperative societies (Deposit-Taking SACCOs) are increasingly utilizing open source enterprise resource planning (open source ERP) to improve the efficiency with the least possible cost. Understanding the factors that influence the organisation and individuals to utilize this technology can assist managers and policy makers to implement strategies to increase and improve the update of the technology and improve the innovation adoption process. The main aim of the study was to establish the factors that influence open source ERP adoption- use by deposit taking SACCOs in Kenya. The study specific objective was to identify the effect of open source ERP adoption factors on the adoption-usage of open source ERP by Deposit-Taking SACCOs in Kenya. Target population was 168 Deposit-taking SACCOs with sample size of 378 respondents. Questionnaire was used to collect quantitative data. SPSS and PLS-SEM using smart PLS was used to analyse the data. The study concludes that environment, attitude and normative structure adoption factors have significant influence on the adoption-use of the open source ERP. The findings indicate that, competition within the sector, internal facilitation through training and top management support can increase adoption and use. The findings reinforce the need to support new technologies from both managerial, technical and policy perspectives.