IJSRED-V2I3P30

International Journal of Scientific Research and Engineering Development-– Volume2 Issue 3, May –June 2019
Available at www.ijsred.com
ISSN : 2581-7175 ©IJSRED:All Rights are Reserved Page 292
The Extent and Significance of the Drivers of Adoption-Use of Open
Source ERP by Deposit Taking Saccos in Kenya
James Mwikya Reuben
Department of
Management Science,
Maseno University
Dr. Johnmark Obura
Department of
Management Science,
Maseno University
Dr. Moses Oginda
Department of
Management Science,
Maseno University
ABSTRACT
Deposit taking credit and savings cooperatives in Kenya are increasingly utilizing open source enterprise
resource planning to better manage resources and improve efficiency.The most successful adoption of
technology results from understanding the target population and the factors influencing their rate of
adoption. The aim of the study was to establish the extent and significance of the drivers of adoption-use
of open source ERP by deposit taking SACCOs in Kenya. The accessed the extent of adoption using
diffusion of innovation theory and the significance of the drivers of adoption –use were assessed using
technology, organisation, environment framework and extended decomposed theory of perceived
behaviour. The unit of analysis was the 164 deposit-taking SACCOs licensed by SACCO regulatory
authority (SASRA) in 2016 and sample size of 378 respondents.Questionnaire was used to collect
quantitative data. Descriptive analysis was conducted on the data using SPSS. The study concludes that
the extent of adoption is that 85.5% of the deposit taking SACCOs have adopted open source ERP with
14.5% not yet adopted and are categorised as laggards. The study concludes that technology, organisation,
environment, attitude, normative structure and perceived behaviour adoption drivers have influence on the
adoption-use of the open source ERP.The SACCO management and policy makers should put more effort
on the high ranking factor components to attract the SACCOs which haven’t adopted (laggards) and
increase the adoption-use of open source ERP by deposit taking SACCOs in Kenya.
Keywords:deposit-taking SACCOs,adoption-use, technology, organisation, environment, attitude,
normative structure, perceived behaviour.
1.0 INTRODUCTION
The cooperative societies in Kenya employ more than 300,000 people, besides providing opportunities for
self-employment to many more and are the fastest growing sub-sector in the movement. Deposit-Taking
RESEARCH ARTICLE OPEN ACCESS

SACCOs are basically member-owned and not for profit but to provide savings, credit and other financial
services to their members. The total number of societies and unions rose by 7.3 per cent from 13,256 in
2012 to 14,228 in 2013.Overall, a total of 972 additional cooperative societies and unions were registered,
with almost half of these being savings and credit cooperative societies, with membership standing at
more than eight million Kenyans (International Monetary Fund, 2012).The cooperative movement is
organised into service and producer entities that cut across various sectors focusing on both private and
public enterprises. Since 1908 when the first cooperative society was formed in Kenya, cooperatives have
made remarkable progress, Deposit Taking Savings and Credit Cooperatives (Deposit-Taking SACCOs)
provide access to financial services to low income households in Kenya. Deposit-Taking SACCOs are
one of the leading sources of rural finance and in many rural areas businesses and households the local
Deposit-Taking SACCOs are the only provider of financial services (Supervision Annual Report,
2014).The cooperative movement in Kenya has improved mainly in the areas of disbursement of loans.
However, it continues to miss opportunities from the use of modern Information Communication
Technology (ICT) platforms. There is a need to refocus and re-assess its capacity not just only to
mobilizing financial resources further, but cheap and effective technology adoption and prudent resource
management for faster economic growth (Gunga, 2008).
Studies carried globally have shown that the quality of the technology is considered a key issue affecting
information systems acceptance which would result in improved organizational performance (Al-
Mamaryet al., 2014). In USA, Petteret al., (2008) established that technology quality is the desirable
characteristics of any information system. The technology quality characteristics which include; ease of
use, system flexibility, system reliability, ease of learning, system success features of intuitiveness,
sophistication, flexibility, and response times, are all referred to as technology complexity. Much of the
studies are devoted to impact of technology to acceptance of information systems (Hwang, et al.2008;
Park, et al. 2011).Other studies carried out in Utara Malaysia and in Libya dealt with similarities between
cultural, structural and technological factors in adoption of ERP systems and organization performance in
developing countries. In these studies, technology factors specifically technology complexity,
compatibility factors are observed on how they impact firm adoption of ERP systems (Hwang, et al.2008;
Park, et al. 2011). However, the studies do not show other technological aspects such as; relative
advantage, compatibility, trialability and observability influence on Open source ERP adoption.
Muriithiet al., (2016), undertook a study to establish how ICTs are being used to support collaborative
research in Kenya, and identify factors within the ICT ecosystem that contribute to their adoption and use.

A mixed methods research design, involving 248 academic scientists in 4 disciplines across 4 major
Kenyan universities, was employed. The study found little diversity in forms of ICTs used to support
collaborative research within the studied population. Several factors affect adoption and use practices,
including availability and access to ICT resources, nature of the work, national and institutional ICT and
research environments and the social cultural practices of researchers. The findings were explained using
Unified Theory of Acceptance and Use of Technology model, which identifies four main constructs that
affect adoption of technology such as performance expectancy, effort expectancy, facilitating conditions
and social influence
1.1 Statement of the problem
The most successful adoption of technology results from understanding the target population and the
factors influencing their rate of adoption. Based on the large number of Deposit-Taking SACCOs, their
increasingly adoption and interest in open source ERP systems and their impact on the Kenyan economy,
little academic attention has gone to the assessment of the drivers of open source ERP adoption and its
impact in the industry. Given the projected increase in adoption of ERP systems it is imperative to
understand extend of adoption and the prominence of the determinants that facilitate the adoption-use of
this technology into firms’ daily operations. Therefore there is a need to better understand the drivers for
adoption-use of open source ERPs. This is particularly true for Deposit-Taking SACCOs as the design for
these ERP systems has drastically changed and the cost of implementing them is a nonissue. The low
extant study on open source ERP adoption-use has certainly inhibited the understanding of the field
among practitioners in a manner that can precipitate information for more absorption of the software.
1.2 The study therefore sought to address the following objectives;
i. To determine the extent of adoption-use of open source ERP by Deposit-Taking SACCOs in Kenya.
ii. To identify the significance of the factor componentsinfluencing the adoption-use of open source
enterprise resource planning by Deposit-Taking SACCOs in Kenya.
1.3 Conceptual framework
To implement the study various independent variables were defined and a relationship between then and
the dependent variable were shown on the conceptual framework (see figure 1). The use of the word
“usage” is synonymous with “adoption” has been used to create the research model and used in practice
by several information system studies such as byYaser et al (2015) and Ahmad Reda (2017). Usage and
adoption are a duality and both are essential in that neither alone can lead to success. Usage is the ante in
the IT transition game while adoption is all about behaviors’ which are inherent and subjective.

International Journal of Scientific Research and Engineering Development
ISSN : 2581-7175
Figure 1: Drivers influencing adoption
2. LITERATURE REVIEW
2.1 Theoretical Review
A. Technology-Organisation-Environment (TOE) Framework
It is a fundamental approach to investigating a firm context that influences the process by which it adopts,
implements, and diffuses technological innovations. A firm functions along three dimensions of
technology, organisation, and environment (TOE), which infl
new technology. The Technology
understand how firms adopt technology for many years (Morgan and Finnegan, 2007).
Scientific Research and Engineering Development-– Volume2 Issue 3, May
©IJSRED:All Rights are Reserved
Drivers influencing adoption-use of open source ERP by deposit-taking SACCOS in Kenya.
Environment (TOE) Framework
fundamental approach to investigating a firm context that influences the process by which it adopts,
technology, organisation, and environment (TOE), which influence the firm’s ability to adopt or reject
new technology. The Technology-Organisational-Environment (TOE) framework has been used to
understand how firms adopt technology for many years (Morgan and Finnegan, 2007).
Volume2 Issue 3, May –June 2019
www.ijsred.com
Page 295
taking SACCOS in Kenya.
fundamental approach to investigating a firm context that influences the process by which it adopts,
uence the firm’s ability to adopt or reject
Environment (TOE) framework has been used to

B. Decomposed Theory of Planned Behaviour (DTPB)
Originated from IS research field and first published in the 1990s (Taylor and Todd, 1995). As an
extension of TPB (Ajzen, 1991), decomposed TPB more completely explores individual/people
dimensions that drive the adoption-use of technology. In DTPB model attitudinal, normative and control
beliefs are decomposed into multi-dimensional belief constructs. Reasons for adopting DTPB in IS
research in general, and OSS research in particular, is that the DTPB has three principle components
(attitude, Normative structure s, and perceived behavioral control), which are applicable to a wide variety
of complex and subjective factors associated with ICT adoption and therefore relevant for exploring and
developing valid explanations of diverse factors influencing the adoption of open source ERP.
C. Diffusion of Innovation Theory (DoI)
Developed by Rogers in 1995, DoI explains how, overtime technology gains momentum and diffuses
(spreads) through a specific population or social system. The end result is that people or organisations
adopt the technology. Adoption means that a person or organisation does something differently than what
they had previously (purchase or use a new technology). It’s important to understand the characteristics of
the target population that will help or hinder adoption of the innovation. There are five adopter categories;
innovators – these are people or organisations who want to be first to try the innovation. They are
venturesome and interested in new ideas. Early adopters- these are people within the organisation who are
the opinion leaders. They enjoy leadership roles, and embrace change opportunities. .Early majority-
these are people or organisations that adopt an innovation after a varying degree of time that is
significantly longer than the innovators and early adopters. Late majority- These are people or
organisation that are skeptical to change, and will only adopt an innovation after it has been tried by the
majority. Laggards – these are people or organisations that are bound by tradition, very conservative and
loathe change. This study will use the DoI model to understand the extend of adoption of open source
ERP among the Deposit-Taking SACCOs in Kenya and offer strategies accordingly after analysing the
various drivers for adoption of open source ERP by the study population.
2.2 Empirical Review
2.2.1 Extent of adoption-use
Anderson et al. (1998) studied the attitudes, skills, and behaviors of the faculty members related to their
IT use at a large Canadian research university. Based on Roger’s (1995) two major adopter categories,
they defined the faculty members as “earlier adopters” and “mainstream faculty” and provided strategies
for reducing the gap between these two groups. VéroniqueVasseur (2012) studied the types of individuals

or households that decide to adopt or reject photovoltaic technology in Netherlands. The study results
categorised four segments of technology adopters; voluntary adopters, involuntary adopters, potential
adopters and rejecters. Norton et al., (2019), investigated the organizational influences on healthcare
system adoption and use of advanced health information technology capabilities in the United States.
Responses from the 2017/2018 National Survey of Healthcare Organizations and Systems were used to
assess the extent to which healthcare system organizational structure, electronic health record (EHR)
standardization, and resource allocation practices were associated with use of 5 advanced HIT
capabilities. Of 732 systems surveyed, 446 responded (60.9%), 425 (58.1%) met sample inclusion
criteria, and 389 (53.1%) reported consistent EHR use. Multivariate linear regression with control
variables estimated the relationships. The study results were; adoption of advanced HIT capabilities is
low and variable, with a mean of 2.4 capabilities adopted and only 8.4% of systems reporting widespread
adoption of all 5 capabilities. The study concluded that health systems that standardize their EHRs and
that own and manage hospitals and medical groups have higher rates of advanced HIT adoption and use.
System leaders looking to increase the use of advanced HIT capabilities should consider ways to better
standardize their EHRs across organizations.
2.2.2 Drivers for adoption-use of open source ERP.
Rogers (1995) defines Relative Advantage as “the degree to which an innovation is seen as being superior
to its predecessor”. Thong (1999) claims that Relative Advantage has positive impact on ICT adoption by
reducing operational and administrative costs, improving business processes, and so on. ERP provides
their adopters with many benefits and therefore organisations are very much motivated to adopt.
Compatibility is “the degree to which an innovation is seen to be compatible with existing values, beliefs,
experiences and needs of adopter” (Roger, 1995); this variable is found to be making much positive
influence on organisations in the adoption of ERP (Premkumar, 2003). Adoption of new technology is
accompanied by changes in how businesses operate. These changes inherently carry reluctance from
employees’ side; when the new technology is very much compatible, reluctance is minimized.
Complexity is “the degree to which an innovation is seen by the potential adopter as being relative
difficult to use and understand” (Rogers 1995). The higher the complexity of a new technology the higher
the possibility of facing failures in the implementation and adoption of such technology hence the
decision to go for such technology is risky (Premkumar and Roberts 1999).
Chaiwoo and Coughlin (2015) researched the generational differences in adoption and use of information
and communications technology. Based on responses from a large-scale survey, this study investigates

older adults’ adoption and use of two ICT devices - mobile phones and PCs. Detailed open-ended
responses from a national sample were quantitatively coded and analyzed with frequency analysis. The
results of this study suggest that older adults’ decisions on adoption and use of ICT are affected by
multiple factors, including assessment of value, relevance with past experiences, compatibility with
lifestyle, and affordability. Furthermore, findings from a comparative analysis suggest that perceived
importance and effects of various adoption factors are different between generations, as well as between
technology types and between stages of adoption – purchase, initial use and continued use.
As this complexity factor is found to be negatively influencing the firm’s adoption decision on ERP, it is
considered to be an important factor of open source software adoption by them (Thong 1999; Ramdaniet
al. 2003). Triability is “the degree to which an idea can be experimented with on a limited basis” (Rogers,
1995). This factor is considered to be important in organization adoption of ERP since it was found to be
influencing firms in the adoption of electronic commerce in previous studies (Kendall et al. 2001).
Observability “the degree to which the results on an innovation are visible” (Rogers 1995). Ramdaniet al.
(2003) found this variable to be a significant variable in firms’ adoption of ERP.
According to Jeyarajet al. (2006) top management support which is highly prioritized factor in the firms’
information systems adoption refers to whether or not the executives or the people in the top management
of a firm understand the nature and functions of ERP. They support the adoption of the same by means of
communication as well as reinforcement of the ideas affecting the adoption of new information systems.
This factor has been found to be critical in creating conducive atmosphere for the adoption of new
technologies and allocation of adequate resources for the adoption of new technologies (Wang et al.,
2007). Since the implementation and adoption of ERP are usually a bigger project and a huge undertaking
for the firm, the implementation of open source ERP involves integration of resources and re-engineering
of the business processes, hence the support from top management, mostly the decision makers in the case
of Deposit-Taking SACCOs, is very crucial.
If a given company has adequate resource such as plentiful budget, sufficient human resource support,
ample time, and good involvement from top management, then the adopting of ERPs will be met in a
positive manner. To this end, the adequate resources factor is critical to the successful adoption (Chang et
al.2006) of open source ERPs by the firm. Any serious company will always want to be the leader not the
follower and thus being more innovative in adopting “cutting edge” innovations. Technology that exists
in a firm impacts its performance and seems that innovation orientation appears to be an important factor

in terms of the timing of adoption, and also in terms of the kinds of cues that are relevant to the decision
to adopt (Dedrick and West, 2003). The Size aspect of the firm has also been found to be one of the most
important factors influencing the organisation’s adoption of new technology (Jeyarajet al., 2006). It is
argued that if the size of an organisation is large, the firm has more needs, more resources, more skills and
more experience and the capacity to exist in times of failures than other firms smaller in size (Ramdaniet
al. 2003), making it clear that if the firm size is big then likelihood of the adoption of new technology is
also high. The study of Chang et al. (2006) found that the Benefits reaped from of information systems
will lead to a positive adoption. Potential benefits such as improving the firm’s image, gaining strategic
advantage over other firms, improving their product or service quality, and enhancing the efficiency of
internal operations will also be critical.
Kwan and West (2005) examined OSS adoption in large enterprises. In particular, they defined four
critical attributes, industry context, firm context, organizational attitudes towards standards, and towards
open standard. The industry context is considered critical, as it can influence the IT decisions of single
companies. The firm context also is determinant as different companies will have different competitive
positions and specific roles for the IT department. The organizational attitudes towards standards and
open standard are drivers of OSS adoption. The greater is the attitude towards open data standards, the
larger are the opportunities for the adoption. The latter aspect is concerned in general with companies'
attitude towards the OSS movement. Some companies are neutral in this aspect, while others are
unbalanced either towards proprietary software or FLOSS, increasing the probabilities of a successful
technological change inside the organization.
3.0 METHODOLOGY
The study adopted correlational research design as it is designed to investigate extent and drivers for open
source enterprise resource planning software adoption-use by of deposit taking savings and credit
cooperatives in Kenya. The target population is the 164 deposit taking SACCOs licensed by SASRA as
at 31st
December 2016. Consistent with the prior research into ICT innovations and given the focus of
this study, the target respondent group is senior managers for example: General Manager, Chief
Accounting Officer, Procurement Officer, Human Resource Manager, Customer Service Manager, and
ICT Manager with dedicated involvement in the adoption and implementation of ERP in organisations.A
total of 378 questionnaires were self-administered to the respondents accompanied. The semi
structured questionnaires were constructed using the 1-5 Likert scale type of statements, where the

respondents were required to either to indicate strongly agree (5), agree ( 4), not sure (3), disagree ( 2 )
and strongly disagree ( 1).
3.1Analysis
Descriptive statistics was analysed using the statistical package for social sciences (SPSS). Measure of
central tendency (mean), measure of dispersion (standard deviation) and distribution (percentage and
frequency) were used to measure the significance of the drivers for adoption-use of open source ERP by
deposit taking SACCOs in Kenya.
4.0 RESULTS
4.1 SACCOs Demographic Information
Of the 378 total respondents, a total of 298 questionnaires were filled and returned, 9 of the returned
questionnaires had invalid responses and were discarded and 289 questionnaires were found to be correct
and were used for study analysis. The demographics of the sample were as follows (see table 1). Majority
of 54% of the respondents were men and in terms of education level, bachelor degree graduates accounted
for the largest share of 50.5%. Staff in the position of customer service manager accounted for the largest
number of respondents in the target group. In terms of length of service between 5 and 10 years
represented 45.7% of the total respondents. Meanwhile in terms of ICT knowledge of the respondents 146
representing 50.5% had good knowledge in ICT.
Table 1: Demographic Information
Demographics Profile Frequency %
Gender Male 156 54
Female 133 46
Education Level certificate 4 1.4
Diploma 60 20.8
Bachelor 146 50.5
Postgraduate 79 27.3
Current Job Position General Manager 9 3.1
Chief Accountant 38 13.1
Human Resource Manager 64 22.1
Senior Procurement Officer 61 21.1
Customer Service Manager 68 23.5
ICT Manager 49 17
Length of service 1-4 years 61 21.1
5-10 years 132 45.7
Above 10 years 96 33.2
ICT Knowledge Moderate 50 17.3
Good 146 50.5
Excellent 93 32.2

4.2 Extent of open source ERP adoption-use
The respondents were asked to select the number of modules they are using to show the extent to which
they have adopted the open source ERP in their respective Deposit-Taking SACCOs. The core modules
selected for the study and frequently used by these organisations are; Accounting/Finance (co-banking),
Human Resource (HR), Procurement (SRM), and Customer Services (CRM). Table 2.0 shows the
response on extend of adoption.
Table 2.0 Extent of adoption table
Modules Used Frequency Percent
None 42 14.5
One Module 31 10.7
Two Modules 39 13.5
Three Modules 99 34.3
Four Modules 78 27.0
Total 289 100.0
It was determined from the study that 85.5% of the Deposit-Taking SACCOs had adopted open source
ERP while 14.5% haven’t adopted the open source ERP. The level of adoption varied with 10.7% of the
respondents indicating that they are using one module of their adopted open source ERP, 13.5% of the
respondents indicated that they are using two modules of their adopted open source ERP, 34.3% of the
respondents indicated that they are using three modules of their adopted open source ERP while 27.0% of
the respondents indicated they are using all four core modules used by financial institutions. These means
there is moderately higher adoption and usage of open source ERP among the Deposit-Taking SACCOs
in Kenya. The study classified three types of adopters according to the number of modules adopted as
earlier adopters, potential adopters and laggards (see figure 2). Earlier adopters – these are Deposit-
Taking SACCOs that have adopted and using at least three open source ERP modules which represented
61.3% of the organisations. These are Deposit-Taking SACCOs which are venturesome, interested in new
ideas and have embraced change. Potential Adopters - these are Deposit-Taking SACCOs that have
adopted and using one or two open source ERP modules which represented 24.2% of the organisations.
The potential adopters have the qualities or abilities that may be developed and lead to more increase in
numbers of modules adopted. Laggards- these are Deposit-Taking SACCOs that haven’t adopted open
source ERP which represented 14.5% of the organisations. These are Deposit-Taking SACCOs which are
tradition and very conservative. These results are in line with study by Anderson et al. (1998) who

International Journal of Scientific Research and Engineering Development
ISSN : 2581-7175
classified two types of adopters “earlier adopters” and “mainstream faculty” on the level of IT use by
faculty members at Canadian Research University.
Figure 2. Extent of open source ERP adoption
The study also collaborates with the findings by Véronique (2012) on adoption of photovoltaic in
Netherlands where four segments of adopters were created as; voluntary adopters, involuntary adopters,
Scientific Research and Engineering Development-– Volume2 Issue 3, May
©IJSRED:All Rights are Reserved
faculty members at Canadian Research University.
Figure 2. Extent of open source ERP adoption
Volume2 Issue 3, May –June 2019
www.ijsred.com
Page 302

potential adopters and rejecters. Strategies on factors influencing the rate of adoption of open source ERP
can be applied on the Deposit Taking SACCOs that fall in potential adopters and laggard segments.
4.3Significance of the factor components influencing the adoption-use of open source enterprise
resource planning by Deposit-Taking SACCOs in Kenya
4.2.1 Technology Components
The result on Table 3.0shows the ranked items of technological characteristics influencing adoption of
open source ERP in Deposit-Taking SACCOs in descending order of means score. The first indicator is
the (TS6) Technology Reliability and Quality with (Mn=4.26, SD=0.745). This implies that 40.8% of the
respondents agree that they have implemented Open source ERP because of its reliability and efficient
security capabilities. The second technology factor was the (TS5) Technology Trialability with (Mn=4.20,
SD=0.697). The ability to experiment with system was a bigger motivator for the Deposit-Taking
SACCOs to adopt the system. There were 55.7% of the respondents who agreed with this. The third
factor for adoption of open source ERP was the (TS4) Technology Maintenance with (Mn=4.19,
SD=0.707). This implies that it is cost effective to maintain open source ERP in the long run as compared
to proprietary ERPs. There were 55.7% of the respondents who agrees with this.
The study findings support that of Chaiwoo and Coughlin (2015) who found out the compatibility with
existing standards in the organization system, trialability of the new system were some of the major
drivers to adoption of open source software by organisations. It further corroborates Premkumar et al,
(2003), Ramdani et al 2003, Kendall et al. (2001), argument that perceived reliability, scalability, low
switching cost ease of maintenance and compatibility of open source technologies, are technological
drivers to adoption of enterprise resource planning and open source software technologies by
organisations.
Table 3.0Technology components influencing open source ERP adoption
Measurement components Min Max Mn SD
(TS6)Technology Reliability and Quality 1 5 4.26 .745
(TS5) Technology Trialability 1 5 4.20 .697
(TS4)Technology Maintenance 1 5 4.19 .707
(TS3)Technology No. Termination Cost 1 5 4.14 .742
(TS12) Technology with Legacy system 1 5 4.12 .684
(TS2)Technology Switch Cost 1 5 4.02 .839
(TS13)Technology Complexity 1 5 3.99 .899
(TS1)Technology Support Cost 1 5 3.98 .699
(TS9)Technology Easy Compatibility 2 5 3.96 .857
(TS10)Technology Compatibility and staff Skills 1 5 3.93 .916
(TS8)Technology Observability 1 5 3.79 .853

(TS7)Technology Skills 1 5 3.56 .985
Valid N (listwise)= 289
Note: Min – Minimum, Max – Maximum, Mn- Mean, SD-Standard Deviation
4.2.2 Organisation Components
The result on Table 4.0 shows the ranked items of organisational components influencing adoption of
open source ERP in Deposit-Taking SACCOs in descending order of means score. There are five highly
ranked organisational characteristics that were identified as influencing a firm towards open source ERP
adoption. The first indicator is the organisation prefers to stick to the tried and tested when implementing
new IT solutions (OS18) with (Mn=4.21,SD=0.842). This implies that a firm will preferably choose an
open source ERP which has been used successfully by another firm with 46.0% of the respondents
strongly agree. The second highly ranked indicator for the adoption of open source ERP was because the
organisation wants to be an innovative and cutting edge organisation (OS17) with (Mn=4.19, SD=0.862)
and 44.3% of the respondents agree. The finding generally support (Muriithi 2016; Wang et al., 2007;
Jeyarajet al., 2006) findings that top management support, the derived benefits from the technology,
organisation IT innovativeness and ICT staff skills are the organisational characteristics influencing the
adoption and use of open source software’s in firms.
Table 4.0Organisation components influencing open source ERP adoption
Measurement Components Min Max Mn SD
(OS18)Organisation new IT Solutions 2 5 4.21 .842
(OS17)Organisation innovativeness in IT 2 5 4.19 .862
(OS16)Organisation available IT staff skills & time 2 5 4.13 .905
(OS14) Top Management support 2 5 4.12 .916
(OS21)Benefits to Organisation 1 5 4.10 .908
(OS20)Organisation Size, skills and experience 1 5 4.03 .874
(OS19)Organisation has resources 1 5 3.98 .892
(OS15)Organisation IT capital budget 2 5 3.95 .866
Valid N (listwise) =289
4.2.3Environmental Components
The result on Table 5.0 shows the ranked items of environment components influencing adoption of open
source ERP in Deposit-Taking SACCOs in descending order of means score. There were six environment
components which were ranked according to their influence to adoption of open source ERP in Deposit-
Taking SACCOs. The first highly ranked item was the (ES27) Environment Competition with (Mn=3.95,
SD=0.885). This implies that competition within the sector has caused the Deposit-Taking SACCOs to
adopt the open source ERP with 42.2% of the respondents agree. The second factor was the (ES24)

environment availability of external vendors for support services with (Mn=3.81, SD=0.923). This infers
that the availability of vendors who can support open source ERP adds more demand for adoption of such
systems with 39.4% of the respondents agrees. . This is in line with the majority of the study findings
(Dibo 2009; Dedrick& West 2004; Kwan & West 2005; Chan 2001) that have reported that competition
from the competitors, No legal requirements, availability of generic modules and long-term viability of
the platform as key environmental characteristics influencing the adoption of open source software by
organisations.
Table 5.0. Environmental Components for open source ERP adoption
Measurement Components Min Max Mn SD
(ES27) Environment Competition 1 5 3.95 .885
(ES24)Environment Availability of external vendors for
support services
1 5 3.81 .923
(ES22)Environment No legal and ethical complications for
implementing
1 5 3.80 1.00
(ES23)Environment Availability of IT skilled workers 1 5 3.78 .934
(ES25)Environment comfortable with the Generic Modules to
start
1 5 3.72 1.00
(ES26)Environment Platform viable in long-term 1 5 3.71 .964
Valid N (listwise)=289
4.2.4Individual/People Components (Attitude, Normative structure and Perceived behaviour)
The result on Table 6.0 shows the ranked items of Individual/People components influencing adoption of
open source ERP in Deposit-Taking SACCOs in descending order of means score. The Individual People
temperament influences were measured using the Decomposed Theory of Planned Behavior (DTPB)
latent variables namely Attitude, Normative structure and Perceived Behavioral Control. The first highly
ranked people temperament indicator influencing adoption of open source ERP in Deposit-Taking
SACCOs in Kenya was the fact that respondents felt that he/she were productive if they use open source
ERP compared to other proprietary software(AD29) with (Mn=4.04, SD=0.879). This implies that 35.6%
of the respondents strongly agree with this attitude indicator where a person perceives to be useful when
using open source ERP. The second highly ranked indicator with (Mn=4.0, SD=0.896) was (AD32) Using
open source ERP will fit with the way I work; with 34.6% of the respondents strongly agree. This means

that the user feels that the open source ERP system is compatible with the way the user works meaning
the system is adaptable to user needs. The study findings support that of Anidzaet al. (2015), who found
out that attitude towards open source technologies had a significant influence towards the adoption of
these technologies by individuals. It further corroborates (Al-Mamaryet al., (2014), Park, et al.,(2011)
Hwang, et al., 2008) argument that attitude, Normative structure and perceived behavior control factors
have positive influence towards adoption of open source technologies.
Table 6.0 individual/people components for open source ERP adoption
Measurement component Min Max Mn SD
(DPBAPU29) I’m productive if I use open source ERP compared to other
proprietary software
2 5 4.04 .879
(DPBACo32)Using open source ERP will fit with the way I work 1 5 4.00 .896
(DPBNSPI35)Workmates think that I should use open source ERP 1 5 4.00 .924
(DPBNSPI34)Friends think that I should use open source ERP 1 5 3.98 .909
(DPBAPE30)I find open source ERP easy to do what I want the software
do
1 5 3.96 .847
(DPBNSSI37 )I will have to use open source ERP because my superiors at
work require it
2 5 3.96 .898
(DPBPBSRFC40) The equipment required to run open source ERP is not
expensive
1 5 3.95 .858
(DPBPBSTFC41)open source ERP software is compatible with software I
use
1 5 3.92 .827
(DPBAPU28)The open source ERP would give me greater control over my
tasks than proprietary ERP software
1 5 3.92 .898
(DPBAPE31)It’s easy to become skillful at using open source ERP 1 5 3.91 .891
(DPBNSSI36)Superiors at work think that I should use open source ERP 1 5 3.90 .921
(DPBACo33) Perceived Ease of Use & compatible my work 1 5 3.88 .869
(DPBPBSSE38)I would feel comfortable using open source ERP on my
own
1 5 3.87 .888
(DPBPBSSE39)I could easily work with any open source ERP on my own
if wanted to
1 5 3.86 .896
Valid N (listwise) = 289
Note: Min – Minimum, Max – Maximum, SD-Standard Deviation
5.0 Conclusions and Recommendations

The results obtained from this study indicated that technological trialability, no termination cost, low
switching cost, low technology complexity, ease of compatibility with existing organisational software
and reliability and quality were found be the most important technological factors influencing the
adoption and use of open source enterprise resource planning by deposit taking saving and credit
cooperative societies in Kenya. The cheap support cost for open source ERP and the cost effectiveness to
maintain an open source ERP in the long run were the main technological factors found to influence the
adoption of open source enterprise resource planning software among the deposit taking saving and credit
cooperative societies in Kenya. The top management support for the adoption and use of open source
enterprise resource planning software was found to play a pivotal role in organisational factors. The study
also found out that, employee skills, software compatibility, software reliability and security capabilities,
good performance of the software and the need to be innovative and a cutting edge organisation were the
key organizational influencing factors for the adoption of open source enterprise resource planning
software. The ability of to easily learn and use, ability to integrate with other systems and ability to
experiment before implementation were identified as the key environmental influencing factors for the
adoption of open source enterprise resource planning software among the deposit taking saving and credit
cooperative societies in Kenya. The study also identified that with the availability of support vendors for
open source ERP and availability of online support community, due to these environmental factors,
Deposit-Taking SACCOs are more willing to adopt open source enterprise resource planning software.
The study also identified individual/people based factors centered on their attitudes, normative structure
and perceived behavior that would influence their adoption of open source enterprise resource planning
software. The first factor was attitude factor that individual belief that they are more productive while
using open source enterprise resource planning software as compares to use of proprietary ERP. Other
personal driven factors identified were; how easily open source ERP would fit into personal working
style, meaning that a people felt that the software was compatible with their style of hence influence to
adoption. The facts that workmates and friends think that their colleagues and friend should use open
source ERP was found to be a major influence on perceived behavior and drive to adopt the software. The
study found out that personal attitude, normative structure and perceived behavior played an important
role on personal influence to adoption of open source software enterprise resource planning.
The study concludes that Deposit-Taking SACCOs in Kenya have adopted the open source enterprise
resource planning system for Accounting and Finance management (AFM), Human Resource
management (HRM), Procurement Management (SRM), and Customer relation management (CRM). The

SACCO management and policy makers should put more effort on the high ranking factor components to
attract the SACCOs which haven’t adopted (laggards) and increase the adoption-use of open source ERP
by deposit taking SACCOs in Kenya.
REFERENCES
Ahmad RedaAlnuzhaAlzighaib (2017) An Investigation into the Adoption of Geographic Information
Systems (GIS) in the Public Sector, University of Canberra ACT 2601 Canberra
Ajzen, I. (1991). Perceived behavioral control, self-efficacy, locus of control, and the theory of planned
behavior. Journal of Applied Social Psychology,32,pp.1–20.
Al-Mamary, Y.H., Shamsuddin,A., & Nor Aziati, A.H. (2014). The Relationship between System
Quality, Information Quality, and Organizational Performance, International Journal of Knowledge
and Research in Management & E-Commerce, 4, 3, 07-10.
Anderson, T., Varnhagen, S., & Campbell, K. (1998). Faculty adoption of teaching and learning
technologies: Contrasting earlier adopters and mainstream faculty. The Canadian Journal of Higher
Education, 28(23),71-78
Chaiwoo Lee, Joseph F. Coughlin (2015), Generational Differences in Adoption and Use of Information
and Communications Technology, Proceedings of the Human Factors and Ergonomics Society 59th
Annual Meeting.
Chang E Koh, Victor R. Prybutok SR, Ibragimova B, (2006). The importance of strategic readiness in an
emerging e-government environment. Business Process Management Journal,12(1), 22-33.
Dedrick, J.& West, J.(2003). Why Firms Adopt Open Source Software Platforms, Grounded Theory of
Innovation and Standards Adoption. MISQ Special Issue Workshop, Standard Making A Critical
Research Frontier for Information Systems.
ElbardanHany, Maged Ali & Ahmad Ghoneim (2014), The Dilemma of internal audit function
adaptation- The impact of ERP and Corporate gevernance pressures. Journal of enterprise information
management,vol.28Iss 1 pp.93-106.
Gunga, S., (2008).The cooperative movement in Kenya and its potential for enhancement of ICT
livelihoods.
Hwang, H-G, Chang, I-C., Chen, F-J., & Wu, S-Y.(2008). Investigation of the application of KMS for
diseases classifications.A study in a Taiwanese hospital. Expert Systems with Applications,34, 725-
733.
Ibrahim Egdair, FarizalRajemi&SanthirasegaranNadarajan (2015). Technology Factors, ERP System and
Organization Performance in Developing Countries.Int.J Sup.Chain.Mgt .Vol. 4.

Jeyaraj, A., Rottman, J. W. &Lacity, M. C., (2006).A Review of the Predictors, Linkages, and Biases in
IY Innovation Adoption Research.Journal of Information Technology, 21 (1).
Kendall, J., Tung, L, Chua, H., & Tan, S. (2001). Receptivity of Singapore’s SMEs to electronic
commerce adoption, The Journal of Strategic Information Systems, 10 (3), 223-242.
Kwan, S.K. and West, J. (2005), “A conceptual model for enterprise adoption of open source software”,
The Standards Edge: Open Season, Sheridan Books, AnnArbor, MI.
Morgan, L.& Finnegan, P. (2007). How perceptions of Open Source Software influence adoption. An
exploratory study.Proceedings from the 15th European Conference on Information Systems,
University of St Gallen, Switzerland.
MuriithiPetronilla, David Horner & Lyn Pemberton , 2016, Factors contributing to adoption and use of
information and communication technologies within research collaborations in Kenya, Information
Technology for Development, ISSN: 0268-1102 (Print) 1554-0170 (Online).
Norton PT, Rodriguez HP, Shortell SM, Lewis VA. (2019), Organizational influences on healthcare
system adoption and use of advanced health information technology capabilities. Am J Manage Care.
PMID: 30667614.
Park, S., Zo, H., &Ciganek, A.P., & Lim, G.G. (2011).Examining success factors in the adoption of
digital object identifier systems. Electronic Commerce Research and Applications,10, 626-636.
Petter, S., &DeLone, W., & McLean, E., (2008).Measuring information systems success: models,
dimensions, measures, and interrelationships. European Journal of Information Systems,17, 236-263.
Premkumar, G.(2003). A Meta-analysis of research on Information Technology Implementation in Small
Business.Journal of Organisational Computing and Electronic Commerce, 13(2).
Premkumar, G. & Roberts, M., (1999).Adoption of new Information Technologies in rural small
businesses. International Journal of Management Science, 27 (4), 467-484.
Ramdani, B., Densil, D. C.,& Williams A. (2003). SMEs' adoption of enterprise applications, Journal of
Small Business and Enterprise Development, 20(4). 735 – 753
Rogers, E. M.(1995).Diffusion of Innovations. Free Press, New York.
Supervision Annual Report, (2014,).Deposit-Taking SACCOs http:// www.sasra.go.ke/index.php/
resources/ publications.
Taylor Shirley and Todd Peter A. (1995).Understanding Information Technology Usage: A Test of
Competing Models. https://doi.org/10.1287/isre.6.2.144. pp 144 – 176.
Thong, J. Y. L., (1999).An integrated model of information systems adoption in small businesses. Journal
of Management Information Systems, 15 (4), 187-214.

VéroniqueVasseur , 2012, Innovation adopters: a new segmentation model The case of photovoltaic in
the Netherlands, 1 International Centre for Integrated Assessment and Sustainable Development,
2nd World sustainability forum.
Wang, E., Lin, C., Jiang, J., and Klein, G. (2007), improving enterprise resource planning (ERP) fit to
organizational process through knowledge traNSFer, international journal of information
management, Vol. 27, pp.200-12.
World Bank Document 2015, From Economic growth to jobs and shared prosperity, Kenya country
economic memorandum.
YaserHasan al-Mamary, Alinashamsuddin, NorAziati Abdul Hamid, Mohammed Hassan Al-
Maamari,(2015), Adoption of Management information systems in cotext of Yemeni organisations: a
structural equation modeling approach, journal of digital information management,vol 3 No. 6.

IJSRED-V2I3P30

More Related Content

What's hot (20)

Similar to IJSRED-V2I3P30 (20)

More from IJSRED (20)

Recently uploaded (20)

IJSRED-V2I3P30