Effects of Enterprise Resource Planning (Erp) System Implementation On Organizational Performance (The Case of Shemu Plc. Dire Dawa)

The introduction of an information system such as Enterprise Resource Planning (ERP) system in an organization brings with it changes on how users work. The objective of the study was to assess the impact of ERP implementation on organizational performance. A total of 158 employees were selected through probability proportionate technique methods to collect primary data using questionnaire and semi-structured interview. The data collected was analyzed by using both descriptive and inferential such as statistics for the demographic characteristics of the respondents, and multiple regression analysis was used in the study to determine the relationship between enterprise resource planning implementation and organizational performance. The study results were presented by the use of tables and percentage. From the study analysis top Management Support and commitment for ERP implementation has a positive and significant standardized coefficient value (β=0.137, p<0.1). Communication was found to have a non-statistically significant relationship with performance. Top Management Support and commitment has a positive and significant standardized coefficient value (β=0.137, p<0.1). And Performance and Financial Managements for Capacity Building Done on the System has a positive and significant standardized coefficient value (β=0.354, p<0.1). In conclusion, it is clear that communication, training, top level management support, and management skills affect Organizational performance in Shemu Plc, therefore the study recommends that the company management should ensure there are mechanisms which enhance the commitment of the top management in the organizations operations, also the level of communication should be upgraded to ensure efficiency and effectiveness. The management should ensure that the employees are well trained and have the required skills to accomplish their tasks in a professional way, the level of management skills should be of high standards to ensure that there is harmony between the management and the employees and that the management is well versed with high skills and it should be for the benefit in achieving organizational goals and objectives.