Enterprise Information Systems as Enablers of Business Transformation in Agribusiness Enterprises in Kakamega County, Kenya

THESIS TITLE: Enterprise Information Systems as Enablers of Business Transformation in Agribusiness Enterprises in Kakamega County, Kenya

STUDENT’S NAME: Nyapala Joseph

SUPERVISORS NAMES:

Dr. Laura Mamuli

Dr. Alice Nambiro

ABSTRACT

The urge to achieve operational efficiency, economies of scale, competitive edge, and profit maximization by business enterprises has become a key factor of interest in the current business world. Likewise, adoption of appropriate enterprise information systems is believed to enhance transformations in business enterprises in-terms of products, process, and operations leading to firm efficiency but to no continuity. Hence, this study assesses the value gained from adopting enterprise information systems as enablers of agribusiness enterprise transformation in Kakamega County, Kenya. The objectives of the study were; to examine the organizational factors that influence adoption of enterprise information systems as enablers of agribusiness enterprises in Kakamega County; to analyse the impact of enterprise information systems on the operational efficiency and effectiveness of agribusiness enterprises in Kakamega County and to analyse the enterprise information systems emergent opportunities in agribusiness enterprises in Kakamega County. The Diffusion of Innovation and Technology Acceptance Model were the theories guiding the study. The study adopted a descriptive research design. The targeted population was 1621 staff and players of selected agribusiness enterprises operating in Kakamega County, Kenya. The sample size was 411 respondents who were selected using the simple random stratified sampling. Data was collected using structured questionnaires, which were dropped and filed by the respondents. Content validity was done through expert opinion and by subjecting the study questionnaire and interview schedules to expert judgement for content validity. Qualitative data collected was analysed using the conceptual content analysis where data was reviewed and explored, initial codes created and reviewed and then presented in a cohesive manner. Inferential data analysis was done using the regression analysis. The analysed data was presented in form of graphs and tables. The findings are expected to benefit both private and public enterprises in business processes transformation in addition to contributing to the existing literature on enterprise information systems and transformation thus aiding scholars to undertake further research. The following conclusions were drawn from the study. First, the level of use of the Enterprise Information Systems among agribusiness enterprises in Kakamega County was found to be above average (64%). This implies that most of the agribusiness enterprises in Kakamega County are using the EIS in their operations.  Second, organizational factors affecting adoption of EIS include; employee competency, organization characteristics and resources availability, unfavourable environment for the implementation of the use of EIS greatly impede the business transformation in Kenya. Third, the emergent opportunities include; great likelihood of accessing business capital, ease of sharing information/Knowledge on Agribusiness, enhances marketing, ease of accessing technical assistance and extension services, enhances procurement of agricultural equipment, and lastly, likelihood to get competent staffing for the enterprise. The researcher recommends for total enterprise operational transition towards automation through systems adoption; management to train current staff on technology use and only hire competent new staff to cut on training expenses, improve on performance & hasten adoption rate. Lastly more research to be undertaken on different firms in different industries in respect to Enterprise Information Systems adoption and transformation. The findings will help agribusiness industry in Western Kenya and the rest of the world to emphasize on implementing Systems in all operations to realize effectiveness and efficiency in operations thus enhancing productivity and profitability.