MODERATING EFFECT OF IMPLEMENTATION CHALLEGES ON ENTERPRISE RESOURCE PLANNING ADOPTION AND INTERNALLY GENERATED REVENUE OF STATE IN SOUTHWEST NIGERIA

Abstract

The study investigated the moderating effect of implementation challenges on Enterprise Resource Planning (ERP) adoption and internally generated revenue (IGR) in Nigeria. The study population of the entire six state in southwest Nigeria (Lagos, Ogun, Oyo, Osun, Ondo and Ekiti). The study employed annual secondary data from 1999 to 2018. The data were sourced from the national bureau of statistics, budget office and board of internal revenue of southwest states. The variable are real average IGR during and post ERP adoption, Pre-ERP adoption performance, and total annual revenue of states. Data collected were analyzed using descriptive and inferential statistics (squared (n²), tow-ANOVA and multiple regression model). Analysis investigates the moderating effects of implementation challenges on ERP adoption and internally generated revenue in southwest Nigeria revealed that a significant positive linear relationship exist between internal generated revenue and implementation hurdles (p < 0.05; t = 0.002) and revenue (p < 0.05; t = 0.000) in southwest Nigeria. The study concluded that weak relationship exists between the implementation hurdles and these internally generated revenue in southwest Nigeria which implies that increment in cost of ERP adoption is no necessarily increasing in the same trend as the benefit of ERP adoption.