Integrated Management Information Systems and Operational Performance of State Owned Entities in the Ministry of Finance, Kenya

Abstract

Issues of deteriorating performance of State entities in developing countries and more specifically in Kenya has become an issue of concern from customer, management, policy makers and scholars thus pertinence of this study to establish the effect of integrated management information systems on operation performance of State entities in the ministry of finance in Kenya. The specific objectives of the study were to determine the effect of financial, procurement, marketing and human resource management information systems on operational performance. Resource based theory was the overall theory that informed this study and supported by technology acceptance theory, stakeholder theory and balanced scorecard model. The study adopted a cross-sectional research design. The target population of the study was 119 respondents from the 16 State entities in the ministry of fiancé in Kenya. Out of the total target population of 119 respondents, Israel formula was used to arrive at the ideal sample size of 83 respondents. The respondents of the study comprised of directors, deputy directors and managers of State entities in the ministry of finance in Kenya. Data was collected from respondents using structured questionnaires with closed ended questions. Secondary data was collected from benchmark reports, strategic plans and financial statements. Validity of the research instrument was tested using scholars at the University Nairobi and industry operation management experts while reliability was tested using Cronbach alpha values with a cut-off point of 0.7 as recommended in literature. The Statistical Package of Social Sciences was used in the quantitative analysis. Quantitative data was analyzed using Pearson Product Moment correlation method while qualitative data was analyzed using content analysis method. The analyzed data was presented in form of tables. The findings of the study revealed that there exists a positive significant relationship between Financial, procurement, marketing, human resource management information systems and operational performance. The study concluded that unless State entities strive to embrace integrated management information systems such as finance, procurement, marketing and human resource management systems, achieving operational performance in terms of quality services, cost minimization, customer satisfaction and change implementation would an uphill task. The study recommends that to overcome these challenges, top managers of the State entities should ensure that employees are equipped with technological skills and knowledge, allocate adequate budgets to implement new initiatives, create technological awareness among workers and form industry partnerships in order to enhance operation performance of State entities in Kenya.