Stakeholder Analysis and Readiness to Change on ERP Project Implementation

Abstract

The successful implementation of Enterprise Resource Planning (ERP) systems in organizations heavily relies on effective change management strategies. The objective of the current study was to investigate the effect of stakeholder analysis and readiness for change on ERP Project Implementation. This study was guided by Stakeholder Theory and Lewin's Three-Step Change Theory. We employed a descriptive research design and conducted data analysis through both descriptive and inferential methods, including correlation and multiple regression. The study encompassed 732 REREC corporate staff in Nairobi, with a sample of 146 individuals selected via simple random sampling. Our findings reveal that change management success factors, specifically stakeholder analysis (r = 0.340; p < 0.01) and readiness for change (r = 0.237; p = 0.015), exhibit a statistically significant cause-and-effect relationship with ERP implementation. Among these relationships, stakeholder analysis holds the highest influence (r = 0.340), followed by readiness for change (r = 0.237). Effective change management strategies significantly effect ERP project success, with stakeholder analysis playing a substantial role and readiness for change being pivotal. Cultivating readiness for change is essential, fostering adaptability and confidence among employees through effective communication and training. Customized change management plans addressing unique stakeholder concerns should be developed and continuously monitored.

Keywords: Stakeholder Analysis, Readiness for Change, Critical Success Factors, ERP Implementation, Change Management

DOI: 10.7176/EJBM/15-18-08

Publication date: November 30^th 2023