The Extent and Significance of the Drivers of Adoption-Use of Open Source ERP by Deposit Taking Saccos in Kenya

Abstract

Deposit taking credit and savings cooperatives in Kenya are increasingly utilizing open source enterprise resource planning to better manage resources and improve efficiency.The most successful adoption of technology results from understanding the target population and the factors influencing their rate of adoption. The aim of the study was to establish the extent and significance of the drivers of adoption-use of open source ERP by deposit taking SACCOs in Kenya. The accessed the extent of adoption using diffusion of innovation theory and the significance of the drivers of adoption –use were assessed using technology, organisation, environment framework and extended decomposed theory of perceived behaviour. The unit of analysis was the 164 deposit-taking SACCOs licensed by SACCO regulatory authority (SASRA) in 2016 and sample size of 378 respondents.Questionnaire was used to collect quantitative data. Descriptive analysis was conducted on the data using SPSS. The study concludes that the extent of adoption is that 85.5% of the deposit taking SACCOs have adopted open source ERP with 14.5% not yet adopted and are categorised as laggards. The study concludes that technology, organisation, environment, attitude, normative structure and perceived behaviour adoption drivers have influence on the adoption-use of the open source ERP.The SACCO management and policy makers should put more effort on the high ranking factor components to attract the SACCOs which haven’t adopted (laggards) and increase the adoption-use of open source ERP by deposit taking SACCOs in Kenya.