Technological adoption in financial management practices and financial performance in Catholic Higher Educational Institutions in Nairobi, Kenya

Abstract
Effective financial management plays a crucial role in ensuring the success and sustainability of organizations. Therefore, this research aims to investigate the impact of technological adoption on financial management practices and performance in Catholic higher educational institutions in Nairobi, Kenya. The study was guided by three theories: technological diffusion, technology acceptance model (TAM), and free cash flow theory. To achieve this objective, a descriptive research design was employed, and a sample of 51 respondents was selected from five Catholic higher educational institutions using stratified random sampling. Data was collected through self-administered questionnaires containing both open and closed-ended questions. The collected data was analysed using SPSS, and inferential statistics were utilized to conduct statistical significance tests. Multiple regression analysis was also conducted, and qualitative data was subjected to thematic analysis. The findings of the study indicate that 87% of the surveyed universities utilize cash budgets, with QuickBooks (31.1%), Enterprise Resource Planning (ERP) (20.0%), and Excel (17.8%) being the most commonly employed technologies. Cash budgeting was found to have a positive relationship with financial performance, and integrating cash budgeting with technology was shown to be beneficial for financial performance. However, the study highlights that the use of technology alone in financial management may not be sufficient for improving financial performance. Therefore, the study recommends the integration of technology with cash management policies to enhance financial performance. Among the financial performance indicators assessed, the liquidity/current ratio obtained the highest mean score, while the university’s strong asset base received the lowest mean score. Furthermore, the regression model employed to predict financial performance demonstrated a good fit with an adjusted R square of 0.647. These findings emphasize the significance of investing in technology to enhance financial management in Catholic higher educational institutions in Nairobi, Kenya.
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Citation
Oluoch, H. A. (2023). Technological adoption in financial management practices and financial performance in Catholic Higher Educational Institutions in Nairobi, Kenya [Strathmore University]. http://hdl.handle.net/11071/13446