Open Source ERP Adoption-Use and Organisational Performance of Deposit-Taking Saccos in Kenya

Abstract

The cost and benefits of an ERP system are arguably the reason why Deposit-Taking SACCOs are opting for adoption-use of open source ERP in an effort to achieve organisation performance. Technology adoption is only important if it truly leads to performance improvements and, as such the proper criteria by which to judge whether an ERP investment has been successful rest not simply in determining whether an organization adopts a technology, but whether the technology application or use actually improves performance. The main aim of the study was to evaluate the influence open source ERP adoption-use on the organisational performance of deposit taking SACCOs in Kenya. The study-specific objective was to determine the influence of open source ERP adoption-use on the organisational performance of Deposit-Taking SACCOs in Kenya. The target population was 168 Deposit-taking SACCOs with a sample size of 378 respondents. The questionnaire was used to collect quantitative data. PLS-SEM using smart pls was used to analyse the data. The study concludes that adoption-use of open source ERP will have a significant effect on organisational performance; learning and growth, internal process, customers, and financial indicators. Open source ERP by itself cannot contribute to significant performance improvement or sustainable competitive advantage if organizational resources and work processes are not improved or changed to enable open source ERP to promote organizational performance. The organisation management and regulatory authority should create an enabling environment and policies that will increase the adoption-use of open source ERP by deposit-taking SACCOs in Kenya.