EFFECT OF INTERGRATED FINANCIAL MANAGEMENT INFORMATION SYSTEM (IFMIS) IMPLEMENTATION ON SUPPLY CHAIN MANAGEMENT PERFORMANCE IN THE DEVOLVED GOVERNMENT SYSTEMS IN KENYA: A CASE OF NAIROBI CITY COUNTY GOVERNMENT
Beverlyne Lukamika Lundu - Master of Science in Procurement and Logistics, Jomo Kenyatta University of Agriculture and Technology, Kenya
Dr. Noor Shale - Jomo Kenyatta University of Agriculture and Technology, Kenya
ABSTRACT
The growth of information technology has transformed the way business is conducted and the internet has revolutionized the way organizations transact externally. IFMIS and supply chain management have been promoted as core components of public financial and public procurement reforms in many developing countries. Procurement being a major expenditure function, IFMIS in supply chain management has been advocated to bring about efficiency and effectiveness in the procurement processes. The purpose of this study was to identify the effects of IFMIS implementation on the performance of supply chain management in NCCG. Specifically, the study seeks to assess the effect of IFMIS on staff competence and skills, organisation policies, technological infrastructure and Top management support on supply chain management performance in NCCG. The study was anchored on the institutional theory, the Human Capital Theory, Technology Acceptance Theory (TAM) and the Upper Echelon Theory. The study used descriptive research design. The target population consisted of top management staff, ICT, finance and procurement department staff in the NCCG. The study used primary data that was collected using a semi-structured questionnaire. Quantitative data was analyzed using descriptive statistics and also factor analysis and results were presented using tables and figures for easy understanding and interpretation. Quantitative data was analyzed using content analysis. Further analysis using the following linear regression model was used to establish the relationship between the independent and dependent variables. The study findings showed that there has been a moderate level of implementation of IFMIS in Nairobi City County Government. The staffs in the County possess the required skills, abilities and experience for IFMIS implementation and these are being enhanced by the county’s training and capacity building programs. The study also established that NCCG has both internal and external policies guiding IFMIS implementation and that the management support for IFMIS implementation in NCCG is strong. NCCG has the required and reliable infrastructure for IFMIS implementation process although it is yet to achieve a reasonable measure of e-readiness status to fully implement IFMIS. Multiple linear regression showed that the aspects of staff competence and skills, policies, top management support and technological infrastructure in the implementation of IFMIS affect the SCM performance of NCCG. The implementation of IFMIS affects SCM effectiveness, cost savings, SCM efficiency, SCM functionality and increased quality in NCCG. The study recommends that the county undertakes extensive capacity building and training scoped during the early stage of the need assessment process. The study recommends that the county reviews the policy guidelines for more successful implementation of IFMIS with regard to management accountability.
