| Abstract: | Technological Innovation is generally used to drive organizations to build up a great affiliation
with external and internal stakeholders to enhance organizational performance. The study has
aimed to determine the Effect of Technological Innovation on Organizational Performance, with a
Special focus on enterprise resource Planning: A Case Study of Derba Midroc Cement P.L.C
(DMC)in Addis Ababa, Ethiopia. The research followed a descriptive explanatory research design
as it explains the relationship between dependent variables and independent variables (used in the
study). The target population for this study consists of employees who are working on ERP systems
in different departments at DMC. The study was collected through primary data by distributing
questionnaires to a sample of Derba Midroc cement employees. Out of the 59 questionnaires, 53
(89.83%) respondents completed and returned the questionnaire while other stakeholders were
excluded from the target respondents due to various limitations. Data was collected through fivepoint Likert scales of the close-ended questionnaire. The quantitative data was coded and analyzed
using SPSS 23 statistical tools, and the study's findings are explained in this study using descriptive
and inferential (correlation and regression) analysis. The mean value of Organizational business
value, Decision-making Internal process and Employee management, were 3.59, 3.58, 3.68, 3.45,
and 3.53, respectively. This study produced a correlation result for each independent variable
concerning dependent variables and the study found significant relationships between all mentioned
dimensions of ERP with organizational performance at the 5% level of P value (i.e., 0.000). At the
end of the regression analysis of the coefficients presented, the values of organizational business
value, Decision-making, employee management, and internal process, are 0.337, 0.242, 0.231, and
0.262, respectively; this shows that the values of all independent variables are positive, implying
that independent variables have a significant effect on Organizational performance, and the
hypothesis result of this study shows that all independent variables accepted as the significant value
less than 0.05. In general, the researcher discovered issues with specific variables that are
recommended. As a result, cement factories should improve their existing technological innovation
such as ERP activities for better organizational performance, and it is recommended that the
companies implement adequate training and development programs to enhance the user's
satisfaction and be more productive on their job. |
