Factors influencing implementation of the integrated financial management information system for managing public finances

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Abstract

With increasing technological advancement in contemporary society, various systems have been developed to improve public fund management. Several public entities have adopted the well-liked integrated financial management information system (IFMIS) for managing their finances. The current study aimed to identify factors influencing the implementation of the IFMIS. This case study on the County Government of Migori involved 255 employees. Principal component analysis (PCA) was used to identify the most significant factors that influence the implementation of IFMIS. The factors were categorized into technological, organisational, environmental, cultural, and ethical. From the analysis, training and dependency on experts were significant technological factors. For the organizational factors, the three key influencers were observed to be creating an organizational culture that dictates how the county operates, developing an organizational culture that supports technology and use in various departments, and having the ability to use it in record management, such as classification and storage. For environmental factors, the most crucial influencer was the efficiency of IFMIS systems. On cultural and ethical factors, this study revealed that importance is the ability to distinguish motivation from corruption, support openness and accountability in implementation, and put in place a formal organizational evaluation of culture. By understanding the importance of these factors, policymakers and administrators in the Migori County Government can prioritize resources and efforts towards addressing these key areas.

Keywords: IFMIS Implementation, Principal Component Analysis, Public Funds

Authors’ individual contribution: Conceptualization — O.T. and J.O.O.; Methodology — O.T. and J.O.O.; Validation — O.T. and J.O.O.; Formal Analysis — O.T. and J.O.O.; Investigation — O.T. and J.O.O.; Resources — O.T.; Writing — Original Draft — J.O.O.; Writing — Review & Editing — O.T. and J.O.O.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: G3, G28

Received: 05.06.2023
Accepted: 22.04.2024
Published online: 24.04.2024

How to cite this paper: Tefera, O., & Otieno, J. O. (2024). Factors influencing implementation of the integrated financial management information system for managing public finances. Journal of Governance & Regulation, 13(2), 145–153. https://doi.org/10.22495/jgrv13i2art14