Abstract
This study examines the influence of key user empowerment on the operational performance through the mediating role of process integration, purchasing strategy and production system. The questionnaires were distributed to 120 manufacturing companies domiciled in East Java Region. Of the 120, 70 questionnaires are valid for further analysis. Data analysis used Partial Least Square (PLS) version 3.0. The finding are as follows: Key user empowerment affects the process integration. Key user empowerment influence the purchasing strategy. Process integration affects the purchasing. Process integration also influence the production system. Purchasing strategy provide support in the company's production system. Process Integration affects the company's operational performance. Purchasing strategy does not affect the operational performance. Purchasing strategy has an impact on company performance through a production system. The production system provides an increasein company performance. In summary, the key user empowerment has a direct and indirect impact on operational performance through process integration, purchasing strategy, and the production system. This study enriches the current research in supply chain management and provide an insight for the manager in improving the operational performance.
Highlights
Changes in the global industry have resulted in a change in the majority of the world including the region of East Java, Indonesia
Some manufacturing companies in East Java have applied high technology such as Enterprise Resources Planning (ERP) into the planning and production process but, they have not achieved an optimal benefit for the company and the question of how to improve the operating performance of the company in the region of East Java Indonesia remains a challenging question for the researcher
The result of the analysis indicated that those five variables have reliability more significant than 0.70. Those five variable key user empowerment, process integration, purchasing strategy, production system, and operational performance have the value of reliability respectively equal to 0.795, 0.887, 0.904, 0.742, 0.831
Summary
Changes in the global industry have resulted in a change in the majority of the world including the region of East Java, Indonesia. One of the manufacturing industry which faces the constraint due to global changes are those manufacturing which is labor intensive such as manufacturing of furniture, consumer goods, household appliances, textile companies, electronic companies, garment companies. These companies have a problem of inefficiency compared to those who have used high technology in the production process. Some manufacturing companies in East Java have applied high technology such as ERP into the planning and production process but, they have not achieved an optimal benefit for the company and the question of how to improve the operating performance of the company in the region of East Java Indonesia remains a challenging question for the researcher. Domestic industry in Indonesia must improve their performance in the pursue of outperforming the competitors
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
