Effect of Enterprises Resource Planning System on the Sustainability of Non-Governmental Organisations: A Case Study of NGOs in Kinondoni District

Abstract

The study examined the effect of an Enterprise Resource Planning System (ERP) on Non-Governmental Organization (NGO) sustainability on the three organizational Sustainability pillars of stakeholder engagement, financial viability, and operational efficiency. The research methodology employed in this study involved a sample of 22 NGOs in Kinondoni District, all of which have been operating for over a decade, actively engaged in projects, and have integrated ERP systems into their operations. Maximum variation sampling was used to select NGOs from the target population. A descriptive research design was adopted, and data was collected using structured questionnaires to gather insights into the experiences and perceptions of NGO representatives regarding ERP system implementation and its impact on sustainability. The findings of this research underscore the positive influence of ERP systems on the sustainability prospects of NGOs in Kinondoni District. The study reveals that ERP systems have led to notable improvements in stakeholder interaction, financial viability, and operational efficiency within these organizations. ERP system has enhanced communication with stakeholders, streamlined financial management processes, and optimized operational workflows, ultimately contributing to the long-term sustainability of NGOs. The study offers recommendations for NGOs to emphasize the potential benefits of ERP system adoption and the need for strategic planning to maximize the advantages of these systems. Furthermore, this research contributes to the broader understanding of how technology adoption can enhance the sustainability of organizations in the nonprofit sector in Tanzania.