Adoption of Enterprise Resources Planning (ERP) In Indonesian Manufacturing Companies

Abstract

Objective – Enterprise resource planning (ERP) is a technology that supports the management of supply chain activities. ERP consists of modules that have various operational and strategic functions. The more modules that are used, the higher the adoption rate is. This study aims to examine the adoption rate based on the modules used. Methodology/Technique – Manufacturing companies in Indonesia were selected as samples to answer the objective of this research and 155 respondents were obtained. The response from each respondent was categorised into two levels of adoption. The companies that adopted 1 to 4 modules were categorised as partial adopters, while companies that adopted five modules were considered to be full adopters. Findings & Novelty – This research found that 39 (25%) companies had fully adopted the ERP modules, 24 companies (15%) had adopted four modules, 29 companies (19%) adopted three modules, and 26 companies (17%) used two modules. Lastly, 37 companies (24%) used one module. Accordingly, the dominant choice is to partially adopt the technology. Type of Paper: Empirical. JEL Classification: O14, 032, O33. Keywords: Technology; Supply Chain; Enterprise Resource Planning (ERP); Adoption; Manufacturing Companies; Resource-Based View (RBV). Reference to this paper should be made as follows: Perdana, Y.R. 2020. Adoption of Enterprise Resources Planning (ERP) In Indonesian Manufacturing Companies, J. Bus. Econ. Review, 5(3) 86–93 https://doi.org/10.35609/jber.2020.5.3(2)