Document Type
Journal Article
Publication Title
International Journal of Data and Network Science
Volume
8
Issue
4
First Page
2399
Last Page
2414
Publisher
Growing Science
School
School of Business and Law
RAS ID
71575
Funders
Petra Christian University / DRPM / Higher Education Indonesia
Abstract
Globalization entails manufacturing companies improving their competitiveness to be superior to competitors. This study investigates the role of ERP implementation in improving business performance through supply chain integration, external supply chain integration, and flexibility. The research surveyed manufacturing companies that were implementing ERP technology adequately. Data was collected from 99 manufacturing companies in East Java that have implemented ERP. The study used judgmental sampling with criteria for employees who have worked for two years and permanent employees and have a role as a critical user or end user of one of the ERP modules in the company department. Data analysis used SmartPLS software version 4.0. The results showed that ERP implementation enhances internal supply chain integration by 0.708, external supply chain integration by 0.491, and supply chain flexibility by 0.244. By responding quickly to interdepartmental needs and integrating systems between functions, internal supply chain integration affects external supply chain integration by 0.373, supply chain flexibility by 0.249, and business performance by 0.196. External supply chain integration affects supply chain flexibility by 0.445 and performance by 0.360. Moreover, supply chain flexibility, described by the flexibility of employee working hours as needed, on-time product delivery, and production processes, impacted business performance by 0.378. The study results provide practical contributions for corporate information technology managers to invest in upgrading ERP software and hardware to maintain integration with a single database in making quick and appropriate decisions. A theoretical contribution to increase competitiveness with supply chain strategy and technology integration.
DOI
10.5267/j.ijdns.2024.5.017
Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 License.
Comments
Harianto, K. J., Tarigan, Z. J. H., Siagian, H., Basana, S. R., & Jie, F. (2024). The effect of digital ERP implementation, supply chain integration and supply chain flexibility on business performance34. International Journal of Data and Network Science, 8(4), 2399-2414. https://doi.org/10.5267/j.ijdns.2024.5.017