Key user ERP capability maintaining ERP sustainability through effective design of business process and integration data management

Abstract

Business competition is increasingly complex, and there are no clear boundaries between products, so company operational processes are needed efficiently and effectively. The performance achieved is obtained through the implementation of an integrated information technology known as ERP. ERP implementation requires a person in charge of a business function called a key user who understands business processes and collaborates with ERP system vendors. The study obtained data that can further process from 77 manufacturing companies in East Java by purchasing an ERP or self-development package. Data processing uses PLS to answer all research hypotheses. The results show that key user capability was able to have a direct effect on the effective design of business processes of 0.643 and integration data management of 0.373. In contrast, it had no direct impact on ERP suitability. Effective Design of Business Processes has an immediate effect on Integration Data Management of 0.338 and ERP suitability of 0.395. The results also show that Integration Data Management has a direct effect on ERP suitability of 0.462. The data processing results for the indirect effect showed that key user capability influenced ERP suitability through the effective design of business processes of 0.507. Key user capability affects ERP suitability through Integration Data Management, and it is obtained as much as 0.254. The last hypothesis, key user capability, influences ERP suitability through effective Design of Business Processes and Integration Data Management of 0.182. The study results provide theoretical contributions to ERP implementation success factors, while practical gifts give key users a good understanding of the company's business processes and ERP systems.

The effect of key user capability on supply chain digital and flexibility in improving financial performance

“…Organizational supply chain integration by combining external integration (downstream and upstream integration) and internal integration (Basana et al, 2022). Digital supply chain implementation projects in companies are closely related to the implementation time and budget issued in accordance with the functions expected by the company (Tarigan et al, 2021). Using an ERP system according to the needs of all the company's internal functions can provide non-financial and financial impacts.…”

“…Companies can build external integration by sharing information with partners, joint programs with partners, automation processes with partners, joint plans with partners, and others (Jafari et al, 2021). Implementation of information technology in the company's internal and external parties requires the expertise of key users (Tarigan et al, 2021).…”

Effect of Information Management Capability, Collaboration, and Supply Chain Resilience on Company Performance

“…IMC covers several aspects of IT as a resource, IT capability, and integration (Ponomarov, 2012;Jiputra et al, 2020). For example, within information management activity, the company needs an IT infrastructure to support the supply chain activity, use IT to perform practical information sharing, and integrate supply chain activity with supply chain partners (Tarigan et al, 2021). Indicators of IMC are described in the following (Ponomarov, 2012): 1) Have an IT system that can facilitate information sharing (IMC1), 2) Able to share information effectively internally (IMC2), 3) Able to share information effectively with supply chain partners (IMC3), 4) Have an integrated database (IMC4), 5) Have an accurate database (IMC5), 6) Have a realtime database (IMC6).…”

“…The importance of IMC can be seen in the supply chain collaboration activity with supply chain partners . IMC is the infrastructure enabling collaboration (Tarigan et al, 2021). Jimenez-Jimenez et al (2019) supported that manufacturing companies in Spain can boost collaboration with good IMC.…”

“…IMC is crucial in facing disruption and is considered a part of risk management (Tarigan et al, 2021). Reliable information is helpful for the decisionmaking process, especially when responding to disruption.…”