ABSTRACT
This study seeks to evaluate the effect of enterprise resource planning (ERP) systems on
the performance of commercial banks in South-west Nigeria. The study objectives are to
evaluate the impact of ERP systems on the performance of commercial banks in southwest
Nigeria; determine the impact of the type of ERP systems on the productivity of
commercial banks; ascertain the impact of ERP systems adoption on customer satisfaction
in commercial banks; ascertain the effect of ERP systems adoption on employees
satisfaction in commercial banks; and evaluate the impact of ERP systems adoption on the
overall efficiency of commercial banks under study. A combination of sample survey and
oral interview were used to collect data on several aspects of performance from five
selected commercial banks in South-west Nigeria. A total population of 750 respondents
from the five selected commercial banks was considered manageable and therefore
constitutes the sample size of this study.
The data collected was analyzed using simple
percentages and relative frequencies while the hypotheses formulated were tested using Ztest
statistics and Test of Population Proportion at 5% level of significance. The findings
from data analyzed indicates that ERP systems adoption have significant impact on the
performance of the studied commercial banks; the type of ERP systems adopted also have
significant impact on the productivity of commercial banks; ERP systems adoption have
significant impact on customer satisfaction through efficient service delivery; ERP systems
adoption have significant impact on employees’ satisfaction through participative
management and continuous training; ERP systems adoption have significant impact on
the overall efficiency of the commercial banks under study. The study however revealed
that commercial banks adopting ERP systems should know that it is a continuous process
that is embodied in a rapidly changing information technology world, hence they must be
abreast of the latest development in the industry or they will face the risk of losing out in
today’s competitive and turbulent operating environment. The study also recommends that
ERP systems is an important strategic tools for surviving in today’s highly competitive
operating environment, hence any commercial bank (irrespective of size) that must
compete favourably and surpass its rivals must adopt ERP systems as an essential
infrastructure.
Also, commercial banks adopting ERP system must at the outset select the
ERP systems modules that fit the business practices and processes of their banks, a
strategic fit analysis of operational requirements and ERP systems features with the
involvement of technical staff and key users is a necessity in this regard. Besides,
commercial banks implementing ERP systems must identify the relevant critical success
factors that must be in place for the successful ERP systems implementation in order to
realize its full benefits. The findings of this study can contribute to improved decision
making and commercial banks’ efficiency especially in the aspect of setting ERP systems
performance standards at the time of acquisition and implementation.
