INSTITUTIONAL EFFECTS ON IMPLEMENTATION AND USE OF E-GOVERNMENT FINANCIAL SYSTEMS: A CASE STUDY OF GHANA’S CONTROLLER AND ACCOUNTANT GENERAL’S DEPARTMENT

ABSTRACT The purpose of this study is to understand the institutional effects on the implementation and use of E-Government financial systems in developing countries and its related consequences. Research in E-Government financial systems and E-Government in developing countries have focused more on issues relating to the challenges and failure of such information systems (IS). In light of this, little is known about the institutional effects and the consequences of implementing and using such IS from a developing country’s perspective. With the aim of addressing this gap, this study investigates the case of the Controller and Accountant General’s Department (CAGD) in Ghana in order to examine the institutional effects and the consequences of implementing and using these E-Government financial systems. This study uses the new institutional theory and force field analysis as the theoretical and analytical lens, and a qualitative interpretive case study as the methodological stance. The findings show that regulatory, normative and cultural-cognitive pillars have effects on EGovernment financial systems implementation and use in Ghana. Concerning the regulatory pillar the Financial Administration Act required heads of departments to approve the payroll of personnel within their unit electronically while the Sarbanes Oxley Act required independence of auditors, which gave “view only” access to financial data. The normative pillar led to phased implementation approach, training and sensitization of end-users as required by the development partners. The cultural-cognitive pillar on the order hand encouraged the introduction of teams such as the Cultural Change Process Management Team (CCPMT) and the advocates to aid end-users and change public sector culture. In these pillars were inherent constraints and enablers on implementation and use of the IS. Thus both national and international laws and standards had an effect on the IS, and their inadequacy represented constraints. The study recommends that developing countries and development partners (DP) should consider the institutional environment before and during implementation and use of E-Government financial systems due to their inevitable effect on such IS. Finally, as an add on to other stated recommendations, the study calls for future research to focus on implementation and use of E-Government financial systems in developing countries, because it brings to light the reasons for the failure and challenges. In addition, other non-deterministic theories can be used by researchers to help identify contextual factors that shape such IS.