READINESS PREREQUISITES FOR FINANCIAL INFORMATION SYSTEMS IMPLEMENTATION IN LOCAL GOVERNMENTS: A SYSTEMATIC LITERATUREREVIEW

Abstract

Local governments worldwide face persistent challenges in implementing Financial Information Systems (FIS), with high rates of abandonment, underutilization, and resistance despite institutional mandates to adopt digital financial management. This study conducts a Systematic Literature Review (SLR) to synthesize empirical evidence on the readiness prerequisites and early-stage implementation challenges of FIS in local government contexts. Following PRISMA 2020 guidelines, a structured search across Scopus, Google Scholar, and ScienceDirect yielded 126 initial records. After deduplication, screening, and full-text eligibility assessment, 27 peer-reviewed empirical studies published between 2015 and 2025 were included in the final synthesis. Findings were analyzed using the extended Technology-Organization-Environment-Human (TOE-H) framework, which integrates the classical TOE model with an explicit Human dimension drawn from the HOT-fit perspective. Thematic coding across 27 studies produced 11 readiness constructs. Staff competence and training needs (HUM-COM; 88.9%) and institutional and regulatory pressure (ENV-INS; 81.5%) emerged as the most pervasive prerequisites, followed closely by IT infrastructure reliability (TEC-INF; 77.8%). The synthesis reveals a systemic pattern of institutional isomorphism: local governments formally adopt systems under coercive mandates while continuing parallel manual practices due to unresolved human, technological, and organizational deficits. This review contributes a structured TOE-H evidence map for sub-national FIS implementation research and offers actionable guidance for policymakers and practitioners designing readiness assessment frameworks for local government digitalization.