The impact of implementing enterprise resources planning (ERP) project on firm performance and organizational citizenship behavior as a moderating

Abstract

ERP implementation requires a substantial investment and typically built through project management, which needs a rigorous and in limited time management. ERP implementation requires enormous efforts to implement because it involves all business functions in the organization and partners (ERP vendors and consultants) This paper aims to examine the impact of implementing an enterprise resources planning project on firm performance and organizational citizenship behavior as a moderating variable. The study has surveyed 61 respondents representing 61 manufacturing companies domiciled in the region of East Java, Indonesia, which has adopted an ERP system for more than five years. Survey used questionnaire designed with a five-point Likert scale. The respondent is the key user who is responsible for the success of the ERP system in its business functions of the company. Data analysis used SPSS version 25 to assess the indicator validity and examine the hypothesis developed. The result showed that the implementation of the enterprise resources planning project directly affected firm performance. Second, organizational citizenship behavior directly influences firm performance. Third, the implementation of the ERP project influences firm performance with organizational citizenship behavior as a moderator variable. This research provides an insight to project manager in building employee relationship to complete the projects on time. This study also enriches the current research in the supply chain theory.

Assessing the Benefit of Adopting ERP Technology and Practicing Green Supply Chain Management toward Operational Performance: An Evidence from Indonesia

“…In addition, the company will potentially reduce lead time so that the delivery process can be more responsive. This finding extends the acceptance of previous research stating that ERP adoption improves operational performance [14,37,[49][50][51][52]. The hypothesis (H10) test showed a significant influence of ERP adoption on operational performance mediated by green purchasing.…”

“…The study surveyed 111 manufacturing companies (medium and large) in Indonesia and found that IT capability plays an essential role in enhancing firm performance [49]. Besides, a survey of 61 respondents representing 61 manufacturing companies domiciled in the region of East Java, Indonesia, also found that ERP adoption by the manufacturing company improves the firm performance [50]. Besides enhancing the operational performance, ERP also con-tributes to the improved competitive advantage, which reflects the operating performance of the manufacturing industry [51].…”

Cross-Border E-Commerce Logistics Collaboration Model Based on Supply Chain Theory

“…e development of enterprises should start from the basic layer. e operation layer should pay attention to improving the logistics capacity, to improve the supply chain performance and promote the development of cross-border e-commerce [11]. After summarizing the characteristics of BSC and ISM, Guo, J. and others used the direct weight method to determine the weight of the evaluation index system.…”

The Influence of IT Capability on Operational Performance Through Internal and External Integration: Evidence from Indonesia

“…Companies' management needs to pay attention to and upgrade their information technology capabilities following the advanced technology development. A study by Tarigan et al (2020) surveyed 61 manufacturing companies in East Java, Indonesia. The result indicated that information technology adoption in enterprise resource planning (ERP) technology improved the manufacturing company's operational performance.…”

“…Besides, research conducted by Liu et al (2015) indicates that companies with high IT capabilities tend to outperform their competitors, especially in operational performance. Prajogo and Olhager (2012) and Tarigan et al (2020) suggest that information technology within a company can provide the real-time information needed by the company, such as the amount of inventory, delivery schedules, and other data related to company op-erations. Moreover, Yu et al (2021) surveyed 296 manufacturing companies in China and found that IT capability can improve quality, delivery, flexibility, and reduce costs to improve operational performance.…”