AJIBM  Vol.9 No.1 , January 2019
Integrated Financial Management Information System and Supply Chain Effectiveness
Abstract: This study sought to determine the influence of Integrated Financial Management Information System (IFMIS) on Supply Chain Effectiveness focusing on Kirinyaga County Government Suppliers, staff who were IFMIS users and Kenya National Treasury IFMIS staff. This study was carried out in March 2017 and used a descriptive research design. The study used quantitative and then qualitative data to draw conclusions. Stratified sampling was used to arrive at a sample of 100 respondents. The causal-effect relationship was determined through use of regression test. The study found that IFMIS had a significant effect on Supply Chain Effectiveness. The effectiveness of the IFMIS could be improved by upgrading control system to protect documents from being attacked by viruses or getting lost, including stronger fraud detection, reporting and a wide application and use of e-purchasing in all county departments.
Cite this paper: Mbaka, A. and Namada, J. (2019) Integrated Financial Management Information System and Supply Chain Effectiveness. American Journal of Industrial and Business Management, 9, 204-232. doi: 10.4236/ajibm.2019.91014.

[1]   Ansoff, H.I. and McDonnell, E.J. (1990) Implanting Strategic Management. Prentice Hall.

[2]   Chartered Institute of Purchasing and Supply. (2012) Improving Competetiveness in the Supply Chain. Profex Publishing Ltd., Stamford.

[3]   Hendriks, C.J. (2012) Integrated Financial Management Information Systems: Guidelines for Effective Implementation by the Public Sector of South Africa. SA Journal of Information Management, 14, 529-538.

[4]   Rodin-Brown, E. (2008) Integrated Financial Management Information Systems—A practical Guide. Louis Berger Group.

[5]   Chêne, M. (2009) The Implementation of Integrated Financial Information Management Systems (IFMIS). Transparency International.

[6]   Casals & Associates Inc. (2004) Technical Assistance Module (TAM) Integrated Financial Management Systems Best Practices: Bolivia and Chile. Americas’ Accountability Anti-Corruption Project (Vol. 22314). Kwik Kopy, Alexandria.

[7]   Diamond, J. and Khemani, P. (2005) Introducing Financial Management Information Systems in Developing Countries. International Monetary Fund.

[8]   Office of Auditor General (2016) Effectiveness of Ifmis in Public Sector -Kenya Case. Office of Auditor General.

[9]   PwC (2014) Economic Crime: a Threat to Business Globally. PwC, Nairobi.

[10]   Kahari, C.K., Gathogo, G. and Wanyoike, D. (2015) Assessment of Factors Affecting the Implementation of Integrated Financial Management Information System in the County Governments: A Case of Nyandarua County, Kenya. International Journal of Economics, Commerce and Management, III, 1352-1373.

[11]   Auramo, J., Kauremaa, J. and Tanskanen, K. (2005) Benefits of IT in Supply Chain Management: An Explorative Study of Progressive Companies. International Journal of Physical Distribution & Logistics Management, 35, 82-100.

[12]   Lundu, B.L. and Shale, N. (2015) Effect of Intergrated Financial Management Information System (Ifmis) Implementation on Supply Chain Management Performance in the Devolved Government Systems in Kenya: A Case of Nairbi City County. International Academic Journal of Procurement and Supply Chain Management, 1, 1-26.

[13]   Rashed, C.A.A., Azeem, A. and Halim, Z. (2013) Effect of Information and Knowledge Sharing on Supply Chain Performance: A Survey Based Approach. Journal of Operations and Supply Chain Management, 3, 61-77.

[14]   Neumann, S. and Segev, E. (1979) A Case Study of User Evaluation of Information Characteristics for Systems Improvement. Journal of Information and Management, 2, 271-278.

[15]   McCormack, K. (1998) What Supply Chain Management Practices Relate to Superior Performance? DRK Research Team, Boston.

[16]   Petersen, K. (1999) The Effect of Information Quality on Supply Chain Performance: An Interorganizational Information System Perspective. Michigan State University, East Lansing.

[17]   Vijayasarathy, L. and Robey, D. (1997) The Effect of EDI on Market Channel Relationship in Retailing. Information and Management, 33, 73-86.

[18]   Sum, C., Yang, K., Ang, J. and Quek, S. (1995) An Analysis of Material Requirements Planning Benefits Using Alternating Conditional Expectation. Journal of Operations Management, 13, 35-48.

[19]   McGowan, A. (1998) Perceived Benefits of ABCM Implementation. Accounting Horizons, 12, 31-50.

[20]   Laudon, K.C. and Laudon, J.P. (2006) Management Information Systems: Managing the Digital Firm. Revista de Administração Contemporanea, 12th Edition, Prentice Hall, Upper Saddle River.

[21]   Kwatsha, N. (2010) Factors Affecting the Implementation of an Electronic Document and Records Management System. University of Stellenbosch, Stellenbosch.

[22]   Adeoti-Adekeye, W.B. (1997) The Importance of Management Information Systems. Library Review, 46, 318-327.

[23]   International Standards Organisation (1990) Information & Documentation on Records Management Guidelines: 15489. International Standards Organisation.

[24]   Goodwin, M. (2006) The Enterprise Document Management Maturity Model.

[25]   Strong, K.V. (1999) Integrating EDMS Function & RM Principles. The Information Management Journal, 33, 18-27.

[26]   Chin, K. (2008) Market Scope for Records Management.

[27]   Emery, P. (2003) Document and Records Management: Understanding the Differences and Embracing Integration. Zlyab Technologies.

[28]   Raynes, M. (2002) Document Management: Is the Time Now Right? Work Study, 51, 303-308.

[29]   Vevaina, P. (2007) Factors Affecting the Implementation of Enterprise Systems within the Government Organisations in New Zealand. Auckland University of Technology, Auckland.

[30]   Pathak, J. (2005) Risk Management, Internal Controls and Organizational Vulnerabilities. Managerial Auditing Journal, 20, 569-577.

[31]   Ayagre, P., Appiah-Gyamerah, I. and Nartey, J. (2014) The Effectiveness of Internal Control Systems of Banks: The Case of Ghanaian Banks. International Journal of Accounting and Financial Reporting, 4, 377-389.

[32]   Mihaela, D. and Iulian, S. (2012) Internal Control and the Impact on Corporate Governance, in Romanian Listed Companies. Journal of Eastern Europe Research in Business & Economics, 2012, 1-10.

[33]   Chartered Institute of Purchasing and Supply (2012) Managing Risks in Supply Chains. Profex Publishing Ltd., Stamford.

[34]   Chartered Institute of Purchasing and Supply (2012) Sourcing in Procurement and Supply. Profex Publishing Ltd., Stamford.

[35]   Committee of Sponsoring Organisations (2011) Internal Control-Integrated Framework. 2nd Edition, Durham.

[36]   Basel Committee (1998) Framework for Internal Control System in Banking Organisations. Basel Committee.

[37]   Harvey, D. and Brown, D. (1998) An Experiential Approach to Organisation Development. 3rd Edition, Prentice Hall, Upper Saddle River.

[38]   Grieves, J. (2000) Introduction: The Origins of Organisation Development. Journal of Management Development, 19, 345.

[39]   Committee of Sponsoring Organisations (1992) Internal Control-Integrated Framework. Committee of Sponsoring Organisations.

[40]   Amudo, A. and Inanga, L. (2009) Evaluation of Internal Control Systems: A Case Study from Uganda. International Research Journal of Finance and Economics, 3, 125-144.

[41]   PricewaterhouseCoopers (2007) Internal Control System and Risk Management. PricewaterhouseCoopers.

[42]   IT World Limited (2004) e-Sourcing: A BuyIT e-Procurement Best Practice Guideline. IT World Limited.

[43]   Musee, K.J. (2011) Factors Affecting Effective Implementation of Intergrated Financial Management Information Systems in Government Ministries in Kenya. University of Nairobi, Nairobi.

[44]   Kaufmann, P.J. and Stern, L.W. (1988) Relational Exchange Norms, Perceptions of Unfairness, and Retained Hostility in Commercial Litigation. Journal of Conflict Resolution, 32, 534-552.

[45]   Dong, S., Xu, S.X. and Zhu, K.X. (2009) Information Technology in Supply Chains: The Value of IT-Enabled Resources under Competition. Information Systems Research, 20, 18-32.

[46]   Vaidya, K., Sajeev, A.S.M. and Callender, G. (2006) Critical Factors That Influence e Procurement Implementation Success in the Public Sector. Journal of Public Procurement, 6, 70-99.

[47]   Birks, C., Bond, S. and Radford, M. (2001) Guide to e-Procurement in the Public Sector. Office of Government Commerce, London.

[48]   Sain, B., Owens, J.D. and Hill, J.D. (2004) Advances in e-Procurement: A Focus on the Product/Buying Situation. Management Services, 48, 10-15.

[49]   Croom, S. (2000) The Impact of Web-Based Procurement on the Management of Operating Resources Supply. The Journal of Supply Chain Management, 36, 4-13.

[50]   Tatsis, V., Mena, C., Wassenhove, L.N.V. and Whicher, L. (2006) E-Procurement in the Greek Food and Drink Industry: Drivers and Impediments. Journal of Purchasing & Supply Management, 12, 63-74.

[51]   De Boer, L., Harink, J. and Heijboer, G. (2002) A Conceptual Model for Assessing the Impact of Electronic Procurement. European Journal of Purchasing and Supply Management, 8, 25-33.

[52]   Mugenda, O.M. and Mugenda, A.G. (2003) Research Methods, Quantitative and Qualitative Approaches. ACT, Nairobi.

[53]   Wainaina, A.M. (2014) The Effects of Intergrated Financial Management Information System on Financial Performance of Commercial State Corporations in Kenya. University of Nairobi, Nairobi.

[54]   Min, H. and Galle, W. (2003) E-Purchasing: Profiles of Adopters and Nonadopters. Industrial Marketing Management, 32, 227-233.