The Effect of Enterprise Resource Planning (ERP) Implementation on the Effectiveness of Internal Control of Selected Private Commercial Banks in Ethiopia

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Date

2021-01

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Publisher

A.A.U

Abstract

This study assesses the effect of ERP systems on internal control effectiveness in private commercial banks in Ethiopia. The specifically intended to evaluate effect of the information system qualities of an ERP on effective internal control in Ethiopian privet commercial banks, to evaluate effect of the service qualities of an ERP on effective internal control in Ethiopian privet commercial banks, to examine effect of the internal control qualities of an ERP on effective internal control in Ethiopian privet commercial banks, to investigate the effect of quality of communication using an ERP on effective internal control in Ethiopian privet commercial banks and to evaluate the effect of internal control implementation under an ERP structure on effective internal control in Ethiopian privet commercial banks. To address such objective study employed explanatory research design. The researcher also adopted the descriptive research design for answering the specific research questions, using simple random sampling 66 respondents were selected from two purposively selected private commercial banks and the results of the study interpreted through inferential statistics these includes correlation and regression, and ordered logit model was used. The result of ordered logistic regression estimation shows that the information system qualities, service qualities of an ERP, internal control qualities of an ERP and implementation of internal control were found positive and significant effect on internal control effectiveness. Based on the finding the researcher recommended that information system qualities of an ERP, service qualities of an ERP, internal control qualities of an ERP and implementation of internal control under ERP are important variables the financing institutions should have work on specific activities of information system qualities, service qualities of an ERP, internal control qualities of an ERP and implementation of internal control under ERP

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Keywords

Enterprise resource planning, Implementation of internal control

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