Abstract
Business competition is increasingly complex, and there are no clear boundaries between products, so company operational processes are needed efficiently and effectively. The performance achieved is obtained through the implementation of an integrated information technology known as ERP. ERP implementation requires a person in charge of a business function called a key user who understands business processes and collaborates with ERP system vendors. The study obtained data that can further process from 77 manufacturing companies in East Java by purchasing an ERP or self-development package. Data processing uses PLS to answer all research hypotheses. The results show that key user capability was able to have a direct effect on the effective design of business processes of 0.643 and integration data management of 0.373. In contrast, it had no direct impact on ERP suitability. Effective Design of Business Processes has an immediate effect on Integration Data Management of 0.338 and ERP suitability of 0.395. The results also show that Integration Data Management has a direct effect on ERP suitability of 0.462. The data processing results for the indirect effect showed that key user capability influenced ERP suitability through the effective design of business processes of 0.507. Key user capability affects ERP suitability through Integration Data Management, and it is obtained as much as 0.254. The last hypothesis, key user capability, influences ERP suitability through effective Design of Business Processes and Integration Data Management of 0.182. The study results provide theoretical contributions to ERP implementation success factors, while practical gifts give key users a good understanding of the company's business processes and ERP systems.
Highlights
Competition is increasingly complex in the business world, making it difficult for companies to select and implement existing business competition strategies
The findings of this study show that key user Enterprise Resource Planning (ERP) capability can have a positive effect on the improvement of effective business process design because key users have an adequate composition and number, as well as clear duties and responsibilities, based on the results of data analysis and previous discussion
The same thing happened to key user ERP capability, which positively impacted data management integration
Summary
Competition is increasingly complex in the business world, making it difficult for companies to select and implement existing business competition strategies. The issue is that many businesses have yet to integrate information systems into their overall administration Until far, these companies have only been supported by specific activities at their separate work locations as part of the process. These companies have only been supported by specific activities at their separate work locations as part of the process This reality may result in easy misunderstanding in data communication between one place of business and another. ERP technology functions to coordinate and integrate information data in each business process and collaborate in value chain activities to produce fast decision making. It provides brief financial analysis and reports, sales on-time reports, production, and inventory reports (Ruivo et al, 2020). Collaboration of activities in the value chain can be in resource coordination with corporate partners, timely communication with suppliers, and good order fulfillment for corporate customers
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