Organizational Performance: The Role of Enterprise Resource Planning and Supply Chain Management
DOI:
https://doi.org/10.47312/ambr.v7i01.558Keywords:
Organizational performance, enterprise resource planning, and supply chain managementAbstract
Technological advances require companies to follow and adapt to technological developments and require companies to move with existing changes. Companies need a strategy to have a competitive advantage and improve organizational performance in dealing with these conditions. The study empirically tested the effect of mediating supply chain management (SCM) implementation on the relationship between Organizational performance and enterprise resource planning (ERP). The sample of this study were employees of PT. Semen Padang is involved in the supply chain management process and runs an enterprise resource planning system with 100 employees. The results of data processing using PLS-SEM showed a positive and significant effect in the direct relationship between ERP to SCM and SCM to performance. Furthermore, SCM mediates the relationship between ERP and company performance.
Downloads
References
AboAbdo, S., Aldhoiena, A., & Al-Amrib, H. (2019). Implementing Enterprise Resource Planning ERP System in a Large Construction Company in KSA. Procedia Computer Science, 164, 463-470. doi:https://doi.org/10.1016/j.procs.2019.12.207
Abujarad, I., Yusof, N. A., & Nikbin, D. (2010). A review paper on organizational culture and organizational performance. International Journal of Business and Social Science, 1, 26-46.
Al-Dhaafri, H. S., Al-Swidi, A. K., & Yusoff, R. Z. B. (2016). The mediating role of TQM and organizational excellence, and the moderating effect of entrepreneurial organizational culture on the relationship between ERP and organizational performance. The TQM Journal, 28(6), 991-1011. doi:10.1108/TQM-04-2014-0040
Al-Shboul, M. d. A. R., Barber, K. D., Garza-Reyes, J. A., Kumar, V., & Abdi, M. R. (2017). The effect of supply chain management practices on supply chain and manufacturing firms’ performance. Journal of Manufacturing Technology Management, 28(5), 577-609. doi:10.1108/JMTM-11-2016-0154
Al Zoubi, M. (2018). The Role of Technology, Organization, and Environment Factors in Enterprise Resource Planning Implementation Success in Jordan.
Altamony, H., Tarhini, A., Zahran, D., Assistant, A.-S., Ala, Gharaibeh, H., & Elyas, T. (2016). The Relationship between Change Management Strategy and Successful Enterprise Resource Planning (ERP) Implementations: A Theoretical Perspective. International Journal of Business Management and Economic Research, 7, 690-703.
Aremu, A., Shahzad, A., & Hassan, S. (2020). The Impacts of Enterprise Resource Planning System Adoption on Firm's Performance Among Medium Size Enterprises. International Journal of Information Systems and Social Change, 11, 24-42. doi:10.4018/IJISSC.2020010103
Assauri, S. (2011). Manajemen Produksi dan Operasi. Jakarta: Indeks.
Aziz, M. A., Ragheb, M. A., Ragab, A. A., & Mokadem, M. E. (2018). The impact of enterprise resource planning on supply chain management practices. The Business and Management Review, 9(4).
Benitez, J., Henseler, J., Castillo, A., & Schuberth, F. (2020). How to perform and report an impactful analysis using partial least squares: Guidelines for confirmatory and explanatory IS research. Information & Management, 57(2), 103168. doi:https://doi.org/10.1016/j.im.2019.05.003
Chopra, S., Meindl, P., & Vir Kalra, D. (2017). Supply chain management: strategy, planning, and operation (Sixth edition ed.): Pearson.
Elfarmawi, W. (2020). Challenges Affecting the Implementation of Enterprise Resource Planning (ERP). doi:10.20470/jsi.v10i3.378
Gandhi, A. V., Shaikh, A., & Sheorey, P. A. (2017). Impact of supply chain management practices on firm performance. International Journal of Retail & Distribution Management, 45(4), 366-384. doi:10.1108/IJRDM-06-2015-0076
Green, K., McGaughey, R., & Casey, K. (2006). Does supply chain management strategy mediate the association between market orientation and organizational performance? Supply Chain Management: An International Journal, 11, 407-414. doi:10.1108/13598540610682426
Hair, J. F., Ringle, C. M., Gudergan, S. P., Fischer, A., Nitzl, C., & Menictas, C. (2019). Partial least squares structural equation modeling-based discrete choice modeling: an illustration in modeling retailer choice. Business Research, 12(1), 115-142. doi:10.1007/s40685-018-0072-4
Hasan, M. T. (2018). Impact of ERP System in Business Management. International Journal of Management Studies, V, 24. doi:10.18843/ijms/v5i4(4)/03
HassabElnaby, H. R., Hwang, W., & Vonderembse, M. A. (2012). The impact of ERP implementation on organizational capabilities and firm performance. Benchmarking: An International Journal, 19(4/5), 618-633. doi:10.1108/14635771211258043
Heizer, J., Render, B., & Munson, C. (2021). Operations Management: Sustainability and Supply Chain Management: Pearson.
Jacobs, F. R., & Chase, R. B. (2018). Operations and Supply Chain Management. New York: McGraw Hill.
Li, S., Ragu-Nathan, B., Ragu-Nathan, T. S., & Subba Rao, S. (2006). The impact of supply chain management practices on competitive advantage and organizational performance. Omega, 34(2), 107-124. doi:https://doi.org/10.1016/j.omega.2004.08.002
Linda, M. R., Thabrani, G., Chandra, R. A., & Firman. (2020). he Effect of Supply Chain Management Practices on Business Performance Mediated By Supply Chain Performance in MSMEs of Snack Food Industry in Padang. International Journal of Advanced Science and Technology, 29(4).
Madapusi, A., & D'Souza, D. (2012). The influence of ERP system implementation on the operational performance of an organization. International Journal of Information Management, 32(1), 24-34. doi:https://doi.org/10.1016/j.ijinfomgt.2011.06.004
Nah, F. F.-H. (2002). Enterprise Resource Planning Solutions and Management. United State of America: IRM Press.
Putra, A. R., & Fiolyta, S. (2018). Pengaruh Penerapan Enterprise Resource Planning Terhadap Kinerja Supply Chain Management. Jurnal Ilmiah Manajemen dan Bisnis, 19(2). doi: http://dx.doi.org/10.30596%2Fjmanbis.v19i2.2090
Ringle, C. M., Wende, S., & Becker, J. M. (2015). SmartPLS 3. SmartPLS GmbH. Retrieved from http://www.smartpls.com
Sarstedt, M., Hair, J. F., Ringle, C. M., Thiele, K. O., & Gudergan, S. P. (2016). Estimation issues with PLS and CBSEM: Where the bias lies! Journal of Business Research, 69(10), 3998-4010. doi:https://doi.org/10.1016/j.jbusres.2016.06.007
Shatat, A., & Udin, Z. (2012). The relationship between ERP system and supply chain management performance in Malaysian manufacturing companies. Journal of Enterprise Information Management, 25. doi:10.1108/17410391211272847
Siahaan T, N., & ., S. I. T. (2020). The Effect of Supply Chain Management on Competitive Advantage and Pperation Organization Performance at PT PLN (Persero). International Journal of Research and Review, 7(4).
Sumangkut, A. A. (2013). Kinerja Supply Chain Management dan Strategi Informasi pada PT. Multi Food Manado Jurnal EMBA: Jurnal Riset Ekonomi, Manajemen, Bisnis dan Akuntansi, 1(3). doi:https://doi.org/10.35794/emba.1.3.2013.1900
Sutduean, J., Singsa, A., Sriyakul, T., & Jermsittiparsert, K. (2019). Supply Chain Integration, Enterprise Resource Planning, and Organizational Performance: The Enterprise Resource Planning Implementation Approach. Journal of Computational and Theoretical Nanoscience, 16, 2975-2981. doi:10.1166/jctn.2019.8204
Taleghani, M., & Liyasi, M. N. (2013). Organization's Mission Statement and Organizational Performance. Universal Journal of Management and Social Sciences, 3(8).
Tarhini, A., Ammar, H., Tarhini, T., & Masa'deh, R. E. (2015). Analysis of the Critical Success Factors for Enterprise Resource Planning Implementation from Stakeholders' Perspective: A Systematic Review. International Business Research, 8, 25-40.
Tian, F., & Xu, S. (2015). How Do Enterprise Resource Planning Systems Affect Firm Risk? Post-Implementation Impact. MIS Quarterly, 39, 39-60. doi:10.25300/MISQ/2015/39.1.03
Truong, H. Q., Sameiro, M., Fernandes, A. C., Sampaio, P., Duong, B. A. T., Duong, H. H., & Vilhenac, E. (2017). Supply chain management practices and firms’ operational performance. International Journal of Quality & Reliability Management, 34(2), 176-193. doi:10.1108/IJQRM-05-2015-0072
Tseng, M.-L., Wu, K.-J., & Nguyen, T. T. (2011). Information technology in supply chain management: a case study. Procedia - Social and Behavioral Sciences, 25, 257-272. doi:https://doi.org/10.1016/j.sbspro.2011.10.546
Umble, E., Haft, R., & Umble, M. M. (2003). Enterprise Resource Planning: Implementation Procedures and Critical Success Factors. European Journal of Operational Research, 146, 241-257. doi:10.1016/S0377-2217(02)00547-7
Wijaya, S. F., & Alianto, H. (2012). Esensi dan penerapan ERP dalam bisnis dilengkapi studi Aplikasi ERP dengan menggunakan metode OOAD. Yogyakarta: Graha Ilmu.
Wullur, M., & Wardaya. (2015). Praktik Manajemen Rantai Pasok dan Teknologi Bisnis Berbasis Elektronik sebagai Pemoderasi Perusahaan Manufaktur. Jurnal Manajemen Transportasi & Logistik, 2(2). doi: http://dx.doi.org/10.25292/j.mtl.v2i2.119
Younis, H., Sundarakani, B., & Vel, P. (2016). The impact of implementing green supply chain management practices on corporate performance. Competitiveness Review, 26(3), 216-245. doi:10.1108/cr-04-2015-0024
Zhou, H., & Li, L. (2020). The impact of supply chain practices and quality management on firm performance: Evidence from China's small and medium manufacturing enterprises. International Journal of Production Economics, 230, 107816. doi:https://doi.org/10.1016/j.ijpe.2020.107816
Downloads
Published
Issue
Section
License
Authors who publish with this journal agree to the following terms:
The journal allow the authors to hold the copyright without restrictions and allow the authors to retain publishing rights without restrictions.
The journal allow the authors to hold the copyright without restrictions and allow the authors to retain publishing rights without restrictions. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
This work is licensed under a Creative Commons Attribution 4.0 International License.