The Effect of Transformational Leadership on Firm Performance through ERP Systems and Supply Chain Integration in the Food and Beverage Industry

Abstract

This study aims to examine the effect of transformational leadership on company performance using ERP technology and supply chain integration in food and beverage companies. The survey uses a questionnaire designed using a 5-point Likert scale. As many as 100 questionnaires were distributed to 100 food and beverage companies domiciled in the region of Surabaya, East Java, Indonesia. Respondents were from the supervisor and upper level as considered the most knowledgeable person in the company. The number of valid data is 55 respondents representing 55 companies from 100 respondents. Data analysis using Smart PLS. The results of the data analysis show that transformation Leadership does not directly affect firm performance; transformation Leadership does not affect supply chain integration. ERP Application influences firm Performance, supply chain integration influences firm performance, ERP Application affects supply chain integration. An additional finding is that transformational leadership indirectly affects firm performance. This result enriches the insight for the manager in enhancing firm performance. This paper also contributes to the current research in the field of supply chain management.

Information Technology Capabilities, Organizational Agility, and Competitive Advantage: A Study of Micro, Small, and Medium Enterprises in Indonesia

“…This research result is supported by who find that IT capabilities significantly influence competitive advantage in terms of profitability and revenue growth . Marinagi et al (2014) also find similar results where information technology influences competitive advantage significantly because it has an important role for supply chain management in that industry (Marinagi, Trivellas, & Sakas, 2014;Setiabudi et al, 2021).…”

“…Today's MSMEs must be able to respond quickly, have short product cycles, and adapt to changes in consumer demand . Wu et al (2017) stated that organizational agility in the supply chain is a required component in achieving firm performance (Setiabudi et al, 2021).and competitive advantage (Wu et al, 2017). Such agility is considered as the ability to explore unexpected environmental changes and exploit these changes to increase competitive advantage (Wu, Tseng, Chiu, & Lim, 2017).…”

Effect of ERP Implementation on Firm Performance Through Information Technology Capability and Inventory Management During the Covid-19 Pandemic

“…ERP system implementation is a strategic decision driven by technical and business factors to improve processes, build a common platform, improve relationships with customers and suppliers, or reduce data errors (Setiabudi et al, 2021). According to Kamdjoug et al (2019) is a decision to adopt commercially available software or develop an existing internal application for later implementation.…”

“…The ERP implementation process can take anywhere from one to three years, and significant efforts are required to be successful because the probability of failure in implementation is quite large. ERP implementation in manufacturing companies integrates all departments in the company (Setiabudi et al, 2021). ERP implementation is a strategic step set by management to implement an internal company integration system using information technology with a single database in manufacturing companies .…”

“…Supply Chain Orientation significantly and positively affects Operational Performance (Kristianto and Tarigan, 2019). Finally, ERP development that is carried out continuously, starting from implementation and customization, can increase the company's operational performance (Tarigan et al, 2021;Setiabudi et al, 2021).…”