IMPACT OF ENTERPRISE RESOURCE PLANNING ON THE PERFORMANCE OF REGISTERED HOTELS IN SOUTH EAST, NIGERIA

ABSTRACT

Relevant literature has considered facilities management, IT-based personnel management, space analysis, inventory management and level of support services management, as a cornerstone of ERP in business organizations. However, the extent to which these variables that constitute professional ERP functions could impact on control of operations and costs, customer satisfaction, information and financial management in hotel establishments in South East Nigeria are quite unclear and is yet to be established and documented in literature. This study determined the impact of ERP on hotel service performance in South East Nigeria. Specifically, the study aimed to pursue the following objectives: to determine the effect of space analysis on employee efficiency in the selected hotels, to ascertain the effect of hotel support services management on hotel service specifications, to ascertain the correlation between business development management and hotel staff disposition, to examine the relationship between inventory management and operational cost effectiveness of the selected hotels, to ascertain the effect of facilities management on hotel customer satisfaction in the study area, to determine the extent to which ICT tools employed enhanced information management by hotels in the study area. The work adopted the survey research method, making use of a structured questionnaire and interview schedule as instruments of data collection. Data were collected from primary sources while population of the study was 576 that included 91 hotels in Awka, 131 hotels in Enugu metropolis and 169 hotels in Owerri, 108 hotels in Umuahia and 77 hotels in Abakiliki; according to the States’ Tourism Development Board. As a result, a census study was conducted. Data were presented with tables and percentages, and were analyzed with Pearson Product Moment Correlation Coefficient. It was found that space analysis on employee efficiency in the selected hotels was significantly positrive (r = .87, P<.05), hotel support services management on hotel service specifications was significantly positive (r = .97, P<.05). The study also found that positive correlation existed between business development management and hotel staff disposition in hotels under study (r = .89, P<.05), there was a direct positive relationship between inventory management and operational cost effectiveness (r=.988, p<.05) in the hotels. It was found that facility management had a significant positive effect (r = 0.875; p < 0.05) on hotel customer satisfaction in the study area, ICT tools employed by the hotels under study significantly enhanced their information management (r = 0.889; p < 0.05). It was concluded that impact of Enterprise Resource Planning System on the performance of services of registered hotels in South East, Nigeria was significantly positive. The study thus recommended that Nigerian hotels should be involved in the homogenization and convergence in business strategies and management options relating to the creation of value and increased operational efficiency through professional ERP services. The study advocates the consolidation of seminars on ERP systems and other modern organizational management techniques which would help organizational managers embrace new ways of effective and sustainable corporate management.