Strategic Underuse of IFMIS: A Process of Shadow System Institutionalization in Public Sector Budgeting

Strategic Underuse of IFMIS: A Process of Shadow System Institutionalization in Public Sector Budgeting | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Research Article Strategic Underuse of IFMIS: A Process of Shadow System Institutionalization in Public Sector Budgeting Jacob K.Muimi, Dr Nelson Masese,Supervisor/Peer Reviewer This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-9420103/v2 This work is licensed under a CC BY 4.0 License Status: Posted Version 2 posted You are reading this latest preprint version Show more versions Abstract Integrated Financial Management Information Systems (IFMIS) are meant to tighten fiscal control, improve transparency, and support better resource allocation in the public sector. Yet a recurring paradox remains: a system may be fully operational for transaction processing and still be sidelined when strategic budget decisions are made. This paper examines that pattern as strategic underuse. Using an interpretive qualitative case study of Kenya's National Treasury, the analysis draws on documentary evidence from 2016 to 2025, including Auditor General reports, parliamentary oversight proceedings, Treasury circulars, and budget publications. Combining process tracing with the Gioia methodology, the paper develops a process model showing how shadow systems emerge, stabilize, and become institutionalized. The findings suggest that spreadsheet-based reporting tools do not persist simply because of technical weakness. They endure because sociotechnical misalignment is reinforced by credibility concerns, oversight demands, and time pressure within the budget cycle. Over time, these parallel tools become trusted enough to function as the practical system of truth even while IFMIS remains the formal system of record. The paper therefore reframes underuse as an institutional process rather than a simple implementation failure and offers a more grounded way to understand digital reform in public financial management. Scientific Communication IFMIS shadow systems strategic underuse sociotechnical misalignment public financial management budgeting Full Text Additional Declarations The authors declare no competing interests. Cite Share Download PDF Status: Posted Version 2 posted You are reading this latest preprint version Show more versions Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. As a division of Research Square Company, we’re committed to making research communication faster, fairer, and more useful. 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Also discoverable on Platform About Our Team In Review Editorial Policies Advisory Board Help Center Resources Author Services Accessibility API Access RSS feed Manage Cookie Preferences © Research Square 2026 | ISSN 2693-5015 (online) Privacy Policy Terms of Service Do Not Sell My Personal Information {"props":{"pageProps":{"initialData":{"identity":"rs-9420103","acceptedTermsAndConditions":true,"allowDirectSubmit":true,"archivedVersions":[],"articleType":"Research Article","associatedPublications":[],"authors":[{"id":623972635,"identity":"a6410b89-e408-4c30-a9d3-f5b98a498abc","order_by":0,"name":"Jacob K.Muimi","email":"data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAAZAAAAAyAQMAAABI0h/eAAAABlBMVEX///8AAABVwtN+AAAACXBIWXMAAA7EAAAOxAGVKw4bAAAA50lEQVRIiWNgGAWjYBACxh4gkcAgISfBwMMAZgIBM1FajInXAlHIwJA4g2gtzD2n0yQe5likz2w/e/BzRU0aA3/7AWaDD/gc1tu7TSJxm0TubJ68ZMkzx3IYJM4kMAPtxKOlnxeiZR5DjoFkA1sFA8MNBubDPERoSZfjf2P8s+FfBYM8SMsfIhyWIC2RYybZ2JbDYADUkozP+4w9ZzdbALUYzpzxLs2ysS+Nx/BMYrNhDx4thj25G2/+3FYnL3E+9/DNhm/JcnLHDx+W+IFPSwOaANDjjOhiqEAer+woGAWjYBSMAhAAANhNSulpqlNqAAAAAElFTkSuQmCC","orcid":"","institution":"Kabarak University","correspondingAuthor":true,"prefix":"","firstName":"Jacob","middleName":"","lastName":"K.Muimi","suffix":""},{"id":624539320,"identity":"4203f8f7-cda5-488a-9911-871dadbad93c","order_by":1,"name":"Dr Nelson Masese,Supervisor/Peer Reviewer","email":"data:image/png;base64,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","orcid":"","institution":"Kabarak University","correspondingAuthor":true,"prefix":"Dr","firstName":"Supervisor/Peer","middleName":"Reviewer Nelson","lastName":"Masese","suffix":""}],"badges":[],"createdAt":"2026-04-15 00:20:12","currentVersionCode":2,"declarations":{"humanSubjects":false,"vertebrateSubjects":true,"conflictsOfInterestStatement":false,"humanSubjectEthicalGuidelines":false,"humanSubjectConsent":false,"humanSubjectClinicalTrial":false,"humanSubjectCaseReport":false,"vertebrateSubjectEthicalGuidelines":true},"doi":"10.21203/rs.3.rs-9420103/v2","doiUrl":"https://doi.org/10.21203/rs.3.rs-9420103/v2","draftVersion":[],"editorialEvents":[],"editorialNote":"","failedWorkflow":false,"files":[{"id":107868892,"identity":"15efe1ee-1e4a-4efd-9658-0b86b94e98eb","added_by":"auto","created_at":"2026-04-27 07:34:43","extension":"pdf","order_by":1,"title":"","display":"","copyAsset":false,"role":"manuscript-pdf","size":418438,"visible":true,"origin":"","legend":"","description":"","filename":"JournalStrategicUnderuseofIFMISShadowSystemInstitutionalization.pdf","url":"https://assets-eu.researchsquare.com/files/rs-9420103/v2_covered_c69c3bd2-c9e7-46a6-9ce5-9c55f2bbfe08.pdf"}],"financialInterests":"The authors declare no competing interests.","formattedTitle":"Strategic Underuse of IFMIS: A Process\nof Shadow System Institutionalization\nin Public Sector Budgeting","fulltext":[],"fulltextSource":"","fullText":"","funders":[],"hasAdminPriorityOnWorkflow":false,"hasManuscriptDocX":false,"hasOptedInToPreprint":true,"hasPassedJournalQc":"","hasAnyPriority":true,"hideJournal":true,"highlight":"","institution":"Kabarak University","isAcceptedByJournal":false,"isAuthorSuppliedPdf":true,"isDeskRejected":"","isHiddenFromSearch":false,"isInQc":false,"isInWorkflow":true,"isPdf":true,"isPdfUpToDate":true,"isWithdrawnOrRetracted":false,"journal":{"display":true,"email":"[email protected]","identity":"researchsquare","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":true,"externalIdentity":"","sideBox":"","snPcode":"","submissionUrl":"/submission","title":"Research Square","twitterHandle":"researchsquare","acdcEnabled":true,"dfaEnabled":false,"editorialSystem":"","reportingPortfolio":"","inReviewEnabled":false,"inReviewRevisionsEnabled":true},"keywords":"IFMIS, shadow systems, strategic underuse, sociotechnical misalignment, public financial management, budgeting","lastPublishedDoi":"10.21203/rs.3.rs-9420103/v2","lastPublishedDoiUrl":"https://doi.org/10.21203/rs.3.rs-9420103/v2","license":{"name":"CC BY 4.0","url":"https://creativecommons.org/licenses/by/4.0/"},"manuscriptAbstract":"\u003cp\u003eIntegrated Financial Management Information Systems (IFMIS) are meant to tighten fiscal control,\u003cbr\u003e\nimprove transparency, and support better resource allocation in the public sector. Yet a recurring\u003cbr\u003e\nparadox remains: a system may be fully operational for transaction processing and still be sidelined\u003cbr\u003e\nwhen strategic budget decisions are made. This paper examines that pattern as strategic underuse.\u003cbr\u003e\nUsing an interpretive qualitative case study of Kenya's National Treasury, the analysis draws on\u003cbr\u003e\ndocumentary evidence from 2016 to 2025, including Auditor General reports, parliamentary\u003cbr\u003e\noversight proceedings, Treasury circulars, and budget publications. Combining process tracing with\u003cbr\u003e\nthe Gioia methodology, the paper develops a process model showing how shadow systems emerge,\u003cbr\u003e\nstabilize, and become institutionalized. The findings suggest that spreadsheet-based reporting tools\u003cbr\u003e\ndo not persist simply because of technical weakness. They endure because sociotechnical\u003cbr\u003e\nmisalignment is reinforced by credibility concerns, oversight demands, and time pressure within the\u003cbr\u003e\nbudget cycle. Over time, these parallel tools become trusted enough to function as the practical\u003cbr\u003e\nsystem of truth even while IFMIS remains the formal system of record. The paper therefore reframes\u003cbr\u003e\nunderuse as an institutional process rather than a simple implementation failure and offers a more\u003cbr\u003e\ngrounded way to understand digital reform in public financial management.\u003c/p\u003e","manuscriptTitle":"Strategic Underuse of IFMIS: A Process\nof Shadow System Institutionalization\nin Public Sector Budgeting","msid":"","msnumber":"","nonDraftVersions":[{"code":2,"date":"2026-04-22 17:05:13","doi":"10.21203/rs.3.rs-9420103/v2","editorialEvents":[{"type":"communityComments","content":0}],"status":"published","journal":{"display":true,"email":"[email protected]","identity":"researchsquare","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":true,"externalIdentity":"","sideBox":"","snPcode":"","submissionUrl":"/submission","title":"Research Square","twitterHandle":"researchsquare","acdcEnabled":true,"dfaEnabled":false,"editorialSystem":"","reportingPortfolio":"","inReviewEnabled":false,"inReviewRevisionsEnabled":true}},{"code":1,"date":"2026-04-16 03:03:25","doi":"10.21203/rs.3.rs-9420103/v1","editorialEvents":[{"type":"communityComments","content":0}],"status":"published","journal":{"display":true,"email":"[email protected]","identity":"researchsquare","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":true,"externalIdentity":"","sideBox":"","snPcode":"","submissionUrl":"/submission","title":"Research Square","twitterHandle":"researchsquare","acdcEnabled":true,"dfaEnabled":false,"editorialSystem":"","reportingPortfolio":"","inReviewEnabled":false,"inReviewRevisionsEnabled":true}}],"origin":"","ownerIdentity":"eadc7aef-c7ea-4891-b715-46e0fff098a6","owner":[],"postedDate":"April 22nd, 2026","published":true,"recentEditorialEvents":[],"rejectedJournal":[],"revision":"","amendment":"","status":"posted","subjectAreas":[{"id":66407661,"name":"Scientific Communication"}],"tags":[],"updatedAt":"2026-04-16T03:03:25+00:00","versionOfRecord":[],"versionCreatedAt":"2026-04-22 17:05:13","video":"","vorDoi":"","vorDoiUrl":"","workflowStages":[]},"version":"v2","identity":"rs-9420103","journalConfig":"researchsquare"},"__N_SSP":true},"page":"/article/[identity]/[[...version]]","query":{"redirect":"/article/rs-9420103","identity":"rs-9420103","version":["v2"]},"buildId":"XKTyCvWXoU3ODBz1xrDgd","isFallback":false,"isExperimentalCompile":false,"dynamicIds":[84888],"gssp":true,"scriptLoader":[]}