MEDIATION EFFECT OF SYSTEM SUCCESS FEATURES ON OPEN SOURCE ERP ADOPTION-USE AND ORGANISATIONAL PERFORMANCE

Abstract

Organisations are shifting their attention towards flexibility, savings and efficiency in order to win or to survive in the market. The emergence of open source ERP for financial institutions can be viewed as one of the most important and constructive developments that has gained momentum in recent years. Consequently, it has become crucial for many organisations in their quest to improve and enhance their competitiveness through its adoption and use. The main objective of the study was to establish the mediation effect of system success features in the relationship between open source ERP adoption-use and organisational performance of 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. PLS-SEM using smartPLS 3.2.8 was used to analyse the data. The study concludes that adoption-use of open source ERP will have significant effect on organisational performance; learning and growth, internal process, customers and financial indicators. To maintain organisational performance and sustain long term viability of the open source ERP, the service quality has to be effective has it has the largest effective size among other mediating system success features (system and information) qualities combined. The service quality components include the support staff competences, reliability and speed of attending to complaints concerning the system.