The Influence of Top Management Support on Knowledge Sharing during the Implementation of ERP Systems in Kenya

Abstract

This study was motivated by the high failure rate of ERP systems around the world during the implementation stage. Most studies report failure rates of between 65% and 75%. Many developed countries such as Kenya have embraced Top Management Support as a technique of improving knowledge sharing in organizations and is seen to be important in minimizing ERP implementation problems. This paper investigated the influence of top management support on the KM infrastructure capability during the implementation of ERP systems in organizations listed in the NSE in Kenya, with the aim of establishing whether these organizations have embraced top management support in ERP implementation.  Three hundred and six (306) questionnaires were distributed to senior managers and users of ERP systems in the companies listed in the NSE. One hundred and eight four (184) responses were received representing a 60% response rate. The study employed factor analysis, univariate analysis, multivariate regression analysis and Structural Equation Modeling (SEM) to investigate the relationship among variables and measure the strength and direction of relationships between constructs. Data was cleaned and analyzed using SPSS version 20 and AMOS version 21. Results showed that most of the organizations regard top management as an important component which contributes to successful ERP implementations. The study recommends higher levels of involvement of top management as this improves on the levels of knowledge sharing which is important for ERP implementation success.