Automated Financial Management Systems and SME Performance in Kenya: A Qualitative Study of Efficiency, Reporting and Strategic Positioning
Abstract: Purpose: This study examines how Automated Financial Management Systems (AFMS) shape operational efficiency, financial reporting and strategic positioning among small and medium enterprises (SMEs) in Kenya. It focuses on the difference between adopting financial software and converting it into organisational value. Methodology: An interpretivist qualitative design was used. Semi-structured interviews were conducted with 13 participants: nine SME owners, managers or finance staff and four professional intermediaries who supported several SMEs. Reflexive thematic analysis compared accounts across manual, partially automated and integrated settings. Findings: Six themes were developed. Participants associated AFMS with movement from retrospective reconstruction to system-based control, faster and more consistent transaction processing, greater financial visibility and more credible reporting. System integration marked the clearest divide. Connected point-of-sale, inventory, accounting and banking systems produced information that was more usable for pricing, stocking and cash decisions than comparable tools operated separately. These gains remained conditional on managerial capability, digital skills, infrastructure and organisational routines. Originality/value: The study distinguishes three levels of value creation: transaction control, financial visibility and strategic use. It shows that adoption explains access to AFMS, but integration and complementary capabilities explain whether financial data become strategically useful. The findings connect technology acceptance, resource configuration and contextual conditions in an under-researched African SME setting.
Keywords: Automated Financial Management Systems, Small and Medium Enterprises, Financial Reporting, Operational Efficiency, System Integration, Strategic Positioning
How to Cite?: Allan Robert Ochieng Ojuok, "Automated Financial Management Systems and SME Performance in Kenya: A Qualitative Study of Efficiency, Reporting and Strategic Positioning", Volume 15 Issue 8, August 2026, International Journal of Science and Research (IJSR), Pages: 1452-1459, https://www.ijsr.net/getabstract.php?paperid=SR26819232741, DOI: https://dx.doi.org/10.21275/SR26819232741