The Effect of Enterprise Resource Planning (ERP) on Performance with Information Technology Capability as Moderating Variable

Abstract

This study aims to gain an understanding of the role of technological capability as a moderating variable on the effect of ERP implementation on operational performance. Companies are expected to utilize information technology capability to encourage the sustainability of information technology developments. This study used secondary data from companies that have implemented ERP in Indonesia. The data were tested for validity and reliability and classical assumptions. It used moderated regression analysis by considering technological capability as a moderating variable. The sample taken consists of companies in Indonesia that have used ERP for at least three years. The result indicates that there is an effect ERP implementation on operational performance but there is no effect of technology capability as a moderating variable on the effect of ERP implementation on operational performance. This study provides theoretical and practical contributions by explaining how to build IT capability so that the implementation of ERP drives the operational performance of business processes. This implies the importance of companies implementing ERP and understanding ERP development systems such as good corporate strategies, executive support, and changes in business processes. The results of this study imply that there are factors that strengthen or weaken the effect of ERP implementation on operational performance in addition to IT capabilities.

Pengaruh Enterprise Resource Planning (ERP) Terhadap Kinerja Perusahaan Usaha Kecil Menengah

“…ERP merupakan perkembangan terbaru dan paling signifikan dari perencanaan produksi dan sistem kontrol untuk perusahaan manufaktur (Gumanti & Utami, 2019) dikembangkan dari Material Requirement Planning (MRP) pada tahun 1975 dan Material Resources Planning II (MRP II) pada tahun 1980 ERP pertama kali digunakan pada awal tahun 1988 karena Dow Chemical Company membeli modul ERP pertamanya dari SAP AG Jerman, tetapi sistem ERP telah diakui sejak tahun 1994 di mana SAP R/3 ditandai sebagai bukti khas dari sistem ERP (Putra et al, 2021) Pada tahun-tahun berikutnya, beberapa vendor perangkat lunak seperti Oracle, PeopleSoft, Baan, dan JD Edwards bergabung dengan SAP untuk bersaing di pasar konsultasi ERP dan integrasi sistem. ERP juga dipandang sebagai "ideologi perencanaan dan pengelolaan sumber daya dari seluruh organisasi dengan cara yang efisien, produktif, dan menguntungkan, dan diwujudkan dalam bentuk paket sistem informasi yang dapat dikonfigurasi" ERP mengintegrasikan semua bagian organisasi seperti "sistem saraf pusat" di mana ia mendapatkan informasi terkini dari berbagai bagian bisnis dan menyampaikan informasi ke bagian lain dari bisnis secara real time (Snider et al, 2009) Menurut (Hendrawan et al, 2020) Target pemasaran dari ERP pada awalnya hanya berfokus pada perusahaan besar, namun kebutuhan untuk meng-upgrade sistem informasi untuk meningkatkan daya saing strategis dan operasional telah Ismail Prayoga Silalahi, Daniel, Eka putra siagian, Jansen Junaidi mengakibatkan meningkatnya jumlah usaha mikro, kecil, dan menengah (UKM) untuk menerapkan ERP dalam bisnis mereka (Marsudi & Pambudi, 2021).…”

Implementation of supply chain management using the ERP system at XYZ Company Indonesia

“…ERP system usually handles things like company distribution processes, managing inventory, invoicing, and accounting in the company. From the explanation above, it can be interpreted that the ERP system will help manage business activities in a company, such as how to ship, sell, produce, and provide inventory management, quality, and human resources (Marsudi & Pambudi, 2021).…”

Effectiveness of Enterprise Resource Planning on the Performance Quality of Food Company Employees in West Java

“…Enterprise Resource Planning (ERP) is a way to manage company resources using information technology (Marsudi & Pambudi, 2021). ERP is equipped with hardware and software to coordinate and integrate information data in each area of the business process to produce quick and precise decision-making.…”