Enterprise resource planning and financial performance of private schools: a case study of Wakiso district, Uganda

Abstract

The main objective of this study was to investigate the relationship between Enterprise Resource Planning (ERP) adoption and financial performance of private schools in Uganda. The objectives of the study were to examine the relationship between ERP adoption and financial performance, establish how organizational factors mediate this relationship, and explore the moderating effect of environmental factors. The research adopted a cross-sectional study design and a quantitative approach, hence achieving a 60% response rate. The findings indicate that ERP adoption has a weak and statistically insignificant relationship with overall financial performance, with profitability showing a positive but non-significant correlation, cost management having minimal impact, and revenue generation demonstrating a negative, non-significant association. The study further found out that Organizational factors, including school size, financial resources, and staff competency, were pivotal in mediating the relationship between ERP adoption and financial performance. Environmental factors such as regulatory environment, technological infrastructure, and economic conditions moderated the financial impacts of ERP adoption. The study recommends that the Ministry of ICT investigate the customization of ERP systems tailored to specific school needs to enhance adoption rates and financial performance. Further research studies should focus on longitudinal studies to assess the long-term financial sustainability and impacts of ERP adoption in private schools. Subject keywords; Enterprise resource planning, Financial performance, Private schools, Wakiso district