Abstract:
An Enterprise Resource Planning system is a corporate wide information system which is used to integrate the
business processes and resources of a company. When the business processes of a company increases and
becomes complex, it is difficult to continue with the traditional decentralized information systems for timely
decision making and other activities. Therefore, main objective of this study is examine the effect of enterprise
resource planning (ERP) system implementation for web-based procurement on organizational performance in
Ethio Telecom. The research followed both descriptive and explanatory research design, as it explains the
relationship between dependent variable and independent variables used in the study. The target population
for this study consists of employees who are working on ERP system in different departments at Ethio Telecom.
One hundred ninety (190) respondents were targeted for the study and hence the same number of questionnaires
was distributed. However, out of this number, 128 questionnaires were received. The remaining 62
questionnaires were not returned back. Both descriptive and inferential statistics were used to analyses the
data using SPSS version 20. Correlation was used to test the strength and direction of the relationship between
the variables. Regression analysis was used to test the effect of the independent variables (ERP system) on
dependent variable (organizational performance) and to test the hypotheses and the result had shown inventory
management, information system, internal process, decision making, organizational business value and
employee management positive and strong relationship with organizational performance. The researcher
recommends Ethio Telecom Gold to build on the ERP system practices (internal process, inventory
management, and decision making, information system, organizational business value and employee
management). Finally, other researchers should be Effective communication with employees is important to
build awareness about the system and its effect on organization performance. Awareness was created to
employees about the objectives of implementing the system and its impact on performance through mail,
discussion, meeting and training.
