Nigerian Journal of Banking and Financial Issues (NJBFI)

ENTERPRISE RESOURCE PLANNING (ERP) SYSTEM QUALITY AND FINANCIAL PERFORMANCE

Abstract

This study examined the relationship between Enterprise Resource Planning (ERP) system quality and financial performance, with Enterprise Resource Planning (ERP) proxied as system uptime, error time and user satisfaction whereas financial performance measured by return on assets (ROA). A descriptive research design was employed. The population comprised employees of MTN operating within Ogba, Lagos State, Nigeria. A sample of 108 respondents was selected using stratified random sampling technique, targeting employees available at selected MTN offices and data was collected using a self-developed structured questionnaire, which was designed based on existing literature and aligned with the study's objectives. Data was analyzed using multiple regression analysis. The findings indicated that system uptime had an insignificant effect on ROA since the p-value of 0.099 was greater than 5% level of significance whereas error time and user satisfaction had significant effect on ROA since their p-value of 0.000 was less than 5% level of significance. The study concluded that Organizations seeking to enhance their financial performance should invest not only in maintaining reliable systems but also in reducing operational errors and maximizing user satisfaction. The study recommended that firms should implement user-centric designs, gather regular feedback, and continuously improve the usability and responsiveness of their systems.