Soft ERP and Hard ERP Implementation to the Integration System for Firm Performance

Abstract

Enterprise Resource Planning (ERP) packages are important for companies to integrate previously partial departments into one integrated system. This integrated system can incorporate data from various departments to facilitate decision making that fits the companys internal and external circumstances. The implementation of ERP in companies needs some people or key users who are able to work on the ERP system properly and correctly. The capabilities of the key users are related to soft ERP and hard ERP. Human-related abilities are called soft ERP while the equipment and tools are called hard ERP. Together, the soft ERP and hard ERP define the data integration in a company and become one entity in the well-being of communication among departments. The data for this research was collected using the likert scale. From the 100 questionnaires distributed to companies, there are 90 returned questionnaires or 90% response rate. The data processing with Java Web Start software showed the result of positive significant impact of 0.643 from soft ERP to hard ERP. The Soft ERP has a positive and significant impact of 0.262 on integrated ERP. The Soft ERP has a direct influence of 0.281 on the company performance. The Hard ERP has a positive and significant impact of 0.439 on integrated ERP. The Hard ERP has a positive and significant impact of 0.375 on firm performance. The integrated ERP has a direct influence of 0.338 on company performance. Overall, the impact of the total variables of independent Soft ERP to company performance is equal to 0.706. Therefore, the integration of ERP system brings positive and significant impacts to the business performance of manufacturing companies in East Java, Indonesia