Analyzing the role of automated finance management systems in improving efficiency, reporting, and strategic positioning of SMES in Kenya
Ojiuok, Allen R. O. (2026) Analyzing the role of automated finance management systems in improving efficiency, reporting, and strategic positioning of SMES in Kenya. Masters thesis, Plymouth Marjon University.
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Abstract
Background: Small and Medium Enterprises play a central role in Kenya’s economy, contributing significantly to employment and GDP. Despite their importance, many SMEs use manual or fragmented financial management techniques that impede productivity, reporting accuracy, and strategic decision-making. Automated Financial Management Systems are becoming more available, however their qualitative strategic impact on Kenyan SMEs is unknown. Aim: This study examined how components of Automated Financial Management Systems influence efficiency, financial reporting, and strategic positioning among SMEs in Kenya. Specifically, it investigated the effects of automated transaction processing, finance automation, and system integration on strategic performance outcomes. Methodology: Guided by interpretivist philosophy, the study used a qualitative explanatory design. Semi-structured interviews were conducted with thirteen purposively selected participants drawn from Kenya-based SMEs and finance-related professionals. Data were analysed using reflexive thematic analysis, following iterative stages of coding, categorisation, and theme development to ensure analytical depth and alignment with the research questions. Findings: The findings reveal that AFMS adoption enhances operational efficiency through faster reconciliation, reduced errors, and standardised workflows. Automation improves financial visibility, enabling real-time monitoring of cash flow, margins, and performance trends, thereby supporting more informed decision-making. System integration emerged as a critical determinant of strategic value, with fully integrated platforms generating greater cross-functional insight than fragmented systems. Automation also strengthened professional legitimacy through improved reporting credibility and regulatory compliance. However, the strategic benefits of AFMS were mediated by managerial capability, digital skills, infrastructure reliability, and organisational readiness. Conclusion: AFMS improve SME efficiency, reporting reliability, and strategic positioning in Kenya. these benefits are realised most strongly when systems are well integrated and supported by adequate managerial capability and enabling infrastructure.
| Item Type: | Thesis (Masters) |
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| Keywords: | Automated Financial Management Systems (AFMS), Small and Medium Enterprises (SMEs), Financial Reporting, Operational Efficiency, System Integration, Strategic Positioning. |
| Depositing User: | Ms Raisa Burton |
| Date Deposited: | 15 Sep 2026 14:52 |
| Last Modified: | 15 Sep 2026 14:52 |
| URI: | https://marjon.repository.guildhe.ac.uk/id/eprint/18143 |
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