The Effect of Enterprise Resource Planning on Organizational Performance in Case Ethiopia Electric Utility Dire Dawa Region
Year: 2025
Type: article
Abstract: The purpose of this study was to investigate the effect of Enterprise Resource Planning (ERP) on organizational performance, using a case study of the Ethiopian Electric Utility in Dire Dawa Region. To achieve the study's objectives, data were collected through administered questionnaires from a sample of 194 employees from the Ethiopian Electric Utility in Dire Dawa Region and four customer service centers. A stratified random sampling technique was employed to select participants from the Ethiopia Electric Utility in Dire Dawa Region and four customer service centers, and the data were analyzed using statistical methods such as descriptive and inferential analysis with IBM SPSS Statistics version 27. The study, descriptive and explanatory in nature, analyzed respondent data and presented it in aggregate. The major findings indicate that the elements of enterprise resource planning (customer relationship management, material management, billing and invoicing, and human resource management) are variables influencing organizational performance in Ethiopia Electric Utility in Dire Dawa Region and four customer service centers. Multiple regression analysis confirms a significant positive impact of CRM, Material Management, and Billing and Invoicing on organizational performance, while HRM indicates no statistically significant effect. In conclusion, the study finds that ERP components, particularly CRM, Material Management, and Billing and Invoicing, positively influence organizational performance. The relationship between HRM and organizational performance suggests a need for further study. Demographic characteristics of respondents could affect adaptability to technological changes, influencing organizational performance. Suggestions include optimizing CRM, Material Management, and Billing and Invoicing components, tailoring HRM approaches, continuous monitoring of ERP effectiveness, investing in employee training, exploring industry- specific ERP customization, fostering collaboration, and encouraging further research. Future research could explore the effects of other ERP components, extend the study nationally, and delve into broader organizational performance issues beyond ERP. Continuous monitoring and follow-up assessments are recommended for gauging the long-term impact of ERP on organizational performance. This research provides valuable insights for decision-makers in the Ethiopian Electric Utility in Dire Dawa Region and similar organizations seeking to enhance their ERP strategies and improve overall organizational performance.
DOI: 10.20372/nadre:19185
Author: Wondifraw Mesganaw
Language: English
Subfield: Management Information Systems
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W7083710550
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