Organizational Performance: The Role of Enterprise Resource Planning and Supply Chain Management
<p>Technological advances require companies to follow and adapt to technological developments and require companies to move with existing changes. Companies need a strategy to have a competitive advantage and improve organizational performance in dealing with these conditions. The study empirically tested the effect of mediating supply chain management (SCM) implementation on the relationship between Organizational performance and enterprise resource planning (ERP). The sample of this study were employees of PT. Semen Padang is involved in the supply chain management process and runs an enterprise resource planning system with 100 employees. The results of data processing using PLS-SEM showed a positive and significant effect in the direct relationship between ERP to SCM and SCM to performance. Furthermore, SCM mediates the relationship between ERP and company performance.</p>
- Research Article
- 10.24036/jkmw02108300
- Jun 30, 2021
- Jurnal Kajian Manajemen dan Wirausaha
This study aims to determine the effect of supply chain management and the implementation of enterprise resource planning on organizational performance. The population and sample used in this study was employees of PT. Semen Padang is involved in the supply chain management process and runs an enterprise resource planning system. Data was collected through distributing questionnaires and data processing was carried out through SPSS 16.0 software. The results of this study indicate that supply chain management has a significant positive effect on organizational performance. The results of this study indicate that the implementation of enterprise resource planning on organizational performance has a significant positive effect on organizational performance.Keywords: Enterprise resource planning, supply chain management, organizational performance
- Research Article
- 10.54373/ifijeb.v5i2.3436
- Jun 27, 2025
- Indo-Fintech Intellectuals: Journal of Economics and Business
Company A, engaged in the food and beverage industry, faced challenges in supply chain management due to the inefficient implementation of its Enterprise Resource Planning (ERP) and Supply Chain Management (SCM) systems. The increasing market demand necessitated the integration of these technologies to improve operational efficiency, ensure timely availability of raw materials and product distribution while improving overall competitiveness. This study aims to analyze the effectiveness of ERP systems in optimizing operational efficiency through productive integration with SCM, focusing on workflow optimization and data accuracy across the supply chain. This study uses a descriptive qualitative approach drawn from secondary sources to understand the relationship between ERP, SCM, and operational performance. The results show that the implementation of ERP and SCM has not been optimized due to lack of training, weak managerial support, and technical constraints such as infrastructure and legacy system integration. This study recommends a comprehensive change management approach, continuous role-based training, and regular system monitoring to reduce downtime. By implementing these strategies, the company can sustainably improve supply chain efficiency and competitiveness.
- Research Article
- 10.55047/transekonomika.v2i3.133
- May 12, 2022
- Transekonomika: Akuntansi, Bisnis dan Keuangan
This research aims to determine the effect of Supply Chain Management and constraints of existing ERP systems in PT Unilever Indonesia Tbk is a company engaged in the household production industry by offering food products, beverages, kitchen needs, to toiletries. In an effort to develop its business operations, it is known that PT Unilever Indonesia Tbk implements its management strategy through ERP and Supply Chain Management systems. The ERP system at PT Unilever Indonesia Tbk functions as an information integration tool for all company stakeholders, while Supply Chain Management functions as a tool for monitoring the flow of goods to consumers and the amount of inventory. Thus, the two strategies are related to the certainty of the performance of Unilever employees. This paper aims to analyze the performance and the relationship between supply chain management, and the effect of the ERP system implemented by Unilever companies on operational performance through interaction and communication of information in order to be efficient in implementing supply chain management strategies and ERP systems. The research method uses a document study approach, as well as primary and secondary data collection techniques. The results of the study reveals that the Supply Chain Management strategy of PT Unilever Indonesia Tbk has four components, namely supply chain uncertainty, management of economies of scale, selection of transportation modes, and product inventory control; as well as the ERP and Supply Chain Management systems of PT Unilever Indonesia Tbk have a positive and significant impact on the company's performance so as to obtain profits and achieve company goals.
- Research Article
15
- 10.1504/ijism.2011.044885
- Jan 1, 2011
- International Journal of Integrated Supply Management
The premise that effective Human Resource Management (HRM) is critical to satisfactory organisational performance has been accepted for some time. Anecdotal evidence suggests that an even more robust relationship exists between HRM practices and the performance of firms that are implementing a Supply Chain Management (SCM) philosophy. While this notion is intuitively pleasing, there is little empirical research to support it. The aim of this study is threefold. First, draw upon the HRM and SCM literature to develop a conceptual model depicting proposed relationships among HRM, SCM implementation, SCM outcomes, customer satisfaction, and organisational performance. Second, generate a survey instrument that enables valid measurement of these constructs. Third, empirically test the model utilising structural equation modelling. The results may be used to improve both HRM and SCM processes and to stimulate further research.
- Research Article
- 10.30880/jts.2021.13.02.005
- Jan 10, 2022
- Journal of Techno-Social
Enterprise Resource Planning (ERP) framework integration is an important and foundational business process preparation and knowledgesharing process. The ERP framework has in the past decade been regarded as a vital enabler for organisational performance and functions as an integral feature in today's diverse and competitive market climate. It normally needs considerable feedback in terms of commitment, time, and resources to incorporate an ERP method.In recent research, numerous contributing factors to the ERP's performance or failure were more specifically demonstrated; still, only the ERP's contributions in developed countries were illuminated. Moreover, many developing countries are interested in ERP deployment in their organizations.As Microsoft Dynamics 365 has not been thoroughly researched to date, this study seeks to penetrate an unexplored territory for Malaysia by concentrating on Malaysia-specific results. The importance of this analysis is a detailed review of the spectrum of Microsoft Dynamics 365 operations in supply chain management. Additionally, this analysis aims to help specific sectors and enterprises further grasp the value of Microsoft Dynamics 365 as an enterprise resource planning (ERP) solution. A reasonable amount of evidence would be supplied that addresses the feasibility, usefulness, and practicality of Microsoft Dynamics 365.This research aimed to discover variables that impact ERP users in an ERP environment, with the intention of gaining a more detailed understanding of the end-user ERP output through a qualitative case study. It is important to recognise all of the influences on the stakeholders in the ERP management and in this study, the Microsoft Dynamic 365 (D365) was the target system. The study utilized a qualitative research framework that combines computational techniques and mathematical estimation for data collection and interpretation. The ERP data obtained are the data required for answering the study questions.The findings of this study show the importance of stakeholders and ERP Framework as well as ERP system such as D365 in promoting individual ERP successes. The researcher also looked at the views of stakeholders on the impact of system quality. This relationship was investigated from the viewpoints of the end-users, stakeholders. Understanding the relative value of the information system factors places an emphasis on the vital performance factors perceived by end consumers by organisations and suppliers. Ingeneral, the conclusion from the analysis is that the management of the supply chain in extended companies should not expect too much of an ERP system as eventually still needs various customizationwithin certain industries.This study has helped to reduce the discrepancy in the theory of stakeholders regarding the criteria for the selection of systems and methods for bread production in Malaysia, although some of the criteria and methods provided for in the theories might not be prominent in the real world. Practitioners tend to respect and comply with the requirements of the organisation over the more sophisticated ERP scheme.
- Research Article
31
- 10.1108/tqm-04-2014-0040
- Oct 10, 2016
- The TQM Journal
Purpose The purpose of this paper is to investigate the relationship between enterprise resource planning (ERP) and organizational performance through examining the mediating effect of total quality management (TQM) and organizational excellence and the moderating effect of entrepreneurial organizational culture (EOC). Design/methodology/approach A survey questionnaire was used to collect the data from Dubai Police Departments. Out of the questionnaires distributed, 320 completed usable were returned and used for the analysis which employed partial least squares structural equation modelling methodology. Findings The results showed that there are positive and significant relationships between ERP, organizational excellence, TQM, and organizational performance. In addition, TQM was found to partially mediate the effect of ERP on organizational performance, where organizational excellence was found to fully mediate the effect on the same relationship. However, the moderating role of EOC on the ERP, TQM, and organizational performance was not confirmed. Practical implications Several practical implications have been gained from this study. It will increase the awareness of managers and decision makers to consider the constructs test to enhance the overall organizational performance in their organizations. The role of TQM and organizational excellence to facilitate the implementation of ERP is very critical. In addition, this research will increase the awareness of different stakeholders such as customers, supplier, and shareholders to integrate the proposed constructs examined to enhance the overall organizational performance. Originality/value The current study is one of the few or the only empirical study that examines the joint effect of ERP, TQM, organizational excellence, and EOC on organizational performance.
- Research Article
- 10.47604/ijscm.3234
- Feb 17, 2025
- International Journal of Supply Chain Management
Purpose: This article aims to evaluate the potential of Artificial intelligence (Ai) in ERP systems to enhance Forecasting in supply chain and resource optimization. It explores how AI can improve forecast accuracy, automate routine tasks, and optimize resource allocation within ERP systems. By analyzing the benefits and challenges of AI integration, the document provides insights for organizations seeking to leverage AI for enhanced supply chain management. Methodology: The methodology employed in the document involves both qualitative and quantitative research techniques. Quantitative data, such as forecasting accuracy, inventory turnover, and cost, is gathered from real-time ERP system data logs to measure ERP performance before and after AI implementation. Qualitative data is collected through interviews with ERP system administrators and supply chain managers to gain insights on user experience and challenges faced in Supply chain function and during AI integration. The research also discusses the selection of suitable machine learning models and their implementation methodology, including data preprocessing, training, and testing phases. Performance metrics, such as Mean Absolute Percentage Error (MAPE), are used to assess the improvements achieved through AI integration. Findings: The study found that AI integration in ERP systems significantly improved forecasting accuracy by 20%. This was attributed to AI's ability to analyze vast amounts of data and identify patterns that traditional ERP systems cannot do without significant work. Inventory turnover ratio increased by 33%, indicating faster movement of stock and reduced holding costs. This was due to AI's improved demand forecasting and real-time inventory adjustments. Operational costs were reduced by 15% due to automation of routine tasks, optimized resource allocation, and minimized waste in production and logistics. Unique Contribution to Theory, Practice and Policy: The research supports existing literature and case studies, confirming AI's potential to revolutionize ERP systems and supply chain management. The findings support existing literature on the potential of AI in supply chain management, specifically in forecasting and resource optimization. The research demonstrates the tangible benefits of AI integration, such as improved forecasting accuracy, optimized resource allocation, and reduced operational costs. The discussion on potential challenges, such as data security and algorithmic bias, helps organizations anticipate and address these issues proactively. The findings can inform government policies and industry regulations related to AI adoption in ERP systems and supply chain management. The emphasis on addressing algorithmic bias and data security concerns encourages responsible and ethical AI implementation. The research highlights the transformative potential of AI, encouraging businesses and policymakers to invest in AI-driven solutions for enhanced supply chain resilience and competitiveness.
- Research Article
- 10.24036/hrms.v1i3.19
- Oct 19, 2021
- Human Resource Management Studies
This study analyzes: (1) the effect of role conflict on cyberloafing behavior (2) the effect of role ambiguity on cyberloafing behavior (3) the effect of role overload on cyberloafing behavior (4) the effect of role conflict, role ambiguity, and role overload simultaneously on cyberloafing behavior. This study is quantitative. The population in this study is. The population in this study were employees of PT. Semen Padang in the HR and general department, the finance department, the production planning department, and the communication department, with a total of 257 people. The sampling technique was taken using proportional clustered simple random sampling where the number of samples was 156 people. Collecting data using a questionnaire with a Likert scale. The analysis technique used is through SPSS 25.0 software. The results of data processing in this study indicate that: (1) role conflict has a positive and significant effect on cyberloafing behavior among employees of PT. Semen Padang (2) role ambiguity has a positive and significant effect on cyberloafing behavior among employees of PT. Semen Padang (3) role overload has no influence and is non-significant to cyberloafing behavior in PT employees Semen Padang (4) role conflict, role ambiguity, and role overload have a positive and significant effect on cyberloafing behavior among employees of PT. Semen Padang.
- Research Article
161
- 10.1108/jmtm-12-2015-0113
- Sep 5, 2016
- Journal of Manufacturing Technology Management
Purpose The purpose of this paper is to provide a systematic analysis about the effects of additive manufacturing (AM) technology adoption on supply chain management (SCM) processes and SCM components in an engineer-to-order environment. Design/methodology/approach Based on two explorative case studies from the hearing systems industry, the impact of AM technology adoption on SCM processes and SCM components is investigated. General systems theory and the contingency approach serve as theoretical underpinning. Findings Not only the internal processes and management activities, e.g. in manufacturing and order fulfillment, of producers are affected by a changeover to AM, but also the SCM processes and components relating to the supply and demand side of a firm’s supply chain. Endogenous and AM technology-related factors are contingency factors that help to explain differing effects of AM technology adoption on SCM processes and SCM components. Research limitations/implications It is proposed that AM’s ability to economically build custom products provides the potential to alleviate the common dilemma between product variety and scale economies. Practical implications Manufacturing firms are encouraged to consider the potential effects of AM on SCM processes and SCM components when deciding whether to adopt AM technologies in the production of industrial parts. Originality/value The research adds to the widely unexplored effects that AM technology usage in customized parts production has on SCM processes and components. Moreover, the general lack of case studies analyzing the implications of AM technology adoption from a supply chain perspective is addressed. The resulting propositions may serve as a starting point for further research on the impact of AM in engineer-to-order supply chains.
- Research Article
1
- 10.54518/rh.2.6.2022.561-567
- Dec 22, 2022
- Research Horizon
Supply Chain Management (SCM) is a network of companies working to create and deliver a product to the end user. These companies include suppliers, factories, distributors, shops or retail, as well as supporting companies such as logistics services. The company is integrated with an ERP or enterprise resource planning system that combines each department into one database to save time in its use. In this study, researchers implemented supply chain management and this ERP system at XYZ Company Indonesia. A company engaged in the marketing and distributing various goods for consumption, including toiletries, body care, cosmetics, and cooking spices, which of course, gives an advantage if it can implement this supply chain management and ERP system.
- Research Article
4
- 10.1108/wjemsd-12-2020-0170
- Jun 22, 2021
- World Journal of Entrepreneurship, Management and Sustainable Development
PurposeThe study aims to examine the joint effect of total quality management (TQM), enterprise resource planning (ERP) and organizational performance on organizational excellence.Design/methodology/approachTo achieve the goal of this study through the hypothesized model, a survey questionnaire research design was employed. The data were collected from a Dubai Police organization. Out of 550 questionnaires, 320 questionnaires were returned. The structural equation modelling (SEM) partial least squares approach was used to analyze the data for measurement and structural models.FindingsThe statistical results confirmed the positive and significant effects of TQM, ERP and organizational performance on organizational excellence. The mediation role of organizational performance between TQM, ERP and organizational excellence also was confirmed.Practical implicationsThroughout this study, further details and valuable implications have been discussed. Findings provide several practical implications. Findings also help practitioners and managers make proper decisions when implementing TQM, ERP and excellence practices in their organizations. With the joint effect of TQM, ERP and organizational performance, organizations can achieve maximum strong excellence and remain in a competitive market. This current study presents potential to be used in didactical initiatives.Originality/valueThis study is a unique empirical research that examines the joint effect of TQM, ERP and performance on excellence relationships. In other words, the current study is one of the few studies that investigate the mediating role of organizational performance beside the organizational excellence as the ultimate variable in developing country, specifically in UAE.
- Book Chapter
2
- 10.1007/978-3-319-92267-6_58
- Aug 15, 2018
The principal aim of this study is to determine the critical success factors of Enterprise Resources Planning Implementation and to measure their effect on Firm Performance drawing on a sample of 215 SMEs operating in Turkish textile industry. Firm performance was measured using subjective measures relying on executive’s perception of how the firm performed relative to both financial and non-financial performance criteria. The structural equation modelling technique was employed to investigate the relationship between the implementation of Enterprise Resource Planning and Firm Performance. Data analysis reveals that there is a strong positive relationship between Enterprise Resource Planning and organizational performance through Enterprise Resource Planning Performance.
- Research Article
4
- 10.1108/ijm-02-2022-0087
- Mar 2, 2023
- International Journal of Manpower
PurposeThe present study seeks to explore the relationships among human resource management (HRM) practices, supply chain management (SCM) implementation and small and medium-sized enterprises' (SMEs) performance in Australia. It also investigates whether HRM practices have any mediating effect on such relationships.Design/methodology/approachIn line with the research objective, a quantitative model was applied and a multi-item survey questionnaire was developed to collect primary data. Cross-sectional surveys of a sample of 216 SMEs from different industries were undertaken to collect data, and factor analysis and structural equation modelling (SEM) were used to analyse data and test hypotheses.FindingsThe statistical results inform that SCM implementation and HRM practices improve SMEs' performance in Australia. SCM implementation is also found to be positively linked to HRM practices and has a significant indirect effect on organisational performance when the HRM practices are mediating. HRM practices are, thus, found in this study to mediate the relationship between SCM implementation and Australia's SMEs performance.Originality/valueThe concurrent effects of SCM and HRM practices on SMEs' performance and how businesses' internal management such as HRM practices mediate and affect SCM and SMEs' performances have not been addressed previously in the Australian business context. This study, hence, addresses the gap in the literature concerning the effect of SCM on SMEs by integrating HRM practices as a significant behavioural support system to SCM implementation in Australia's SMEs.
- Conference Article
8
- 10.1109/ieem.2007.4419471
- Dec 1, 2007
Enterprise resource planning (ERP) and supply chain management (SCM) represent important technology investment options for operations managers, and have been acclaimed in the practitioner and academic literature for their potential to improve business performance. ERP systems provide benefits in the area of transaction automation; SCM systems provide more sophisticated planning capabilities. This paper focuses on the interactions between ERP and SCM A conceptual framework was proposed. The framework is featuring the ERP benefits, firm competences, and supply chain performance. It became clear that there exists close interrelations in benefits of implementing ERP system and SCM performances. We apply rough set theory (RST) to discover important ERP attributes leading to the success of SCM.
- Research Article
32
- 10.5539/ijbm.v8n19p107
- Sep 22, 2013
- International Journal of Business and Management
Two of the essential IT investment options that managers resort are supply chain management and enterpriseresource planning. These options are known in the relevant literature as factors contributing to the enhancementof organizational performance. The objective of this study is to investigate the enterprise resource planningadoption and its influence on organizational performance through supply chain management. This articlesuggests a new model which applies enterprise resource planning with supply chain management to optimalorganizational performance. Structural equation model was utilized to test the model fitting level and the fourproposed hypotheses. The required data for this research was collected from 174 companies in Malaysia throughprepared surveys. The results support, through empirical evidences, the existence of positive effects ofenterprise resource planning on the supply chain which ultimately results in improved overall performance ofthe studied organizations.
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