Study of Improving Cluster Supply Chain Capability at PT. XYZ Through The Implementation of Digital Connectivity

Purpose – Enterprise resource planning (ERP) is intended to integrate all facets of a company’s business operations encompassing production planning, material purchasing, inventory control, logistics, accounting, finance, marketing, and human resource management by creating a single depository of the database that can be shared by the entire organization and its trading partners. Through an empirical study, the purpose of this paper is to identify a multitude of drivers that facilitate or hinder the implementation of ERP in business environments. Also, this paper determines its role in supply chain operations and assesses its impact on supply chain performances. Design/methodology/approach – To examine which factors drive the ERP adoption and gauge the level of the ERP success, the authors develop a research framework based on two well-known theories in the strategy literature: a contingency theory; and a resource-based view of the firm. This research framework allowed us to develop a series of hypotheses regarding the use of ERP for strategic sourcing. To test hypotheses, the authors carried out the study in three phases: a pre-pilot; a pilot; and a large-scale questionnaire survey. In the pre-pilot phase, the authors generated potential survey items through theory development and a literature review. In the pilot phase, the authors develop a structural equation model along with the identification of valid constructs based on structural interviews and the Q-sort method. At the last stage, the authors conducted a large-scale survey via mail questionnaires primarily targeting the Korean industry comprised of manufacturers and their suppliers and customers. Findings – The firm’s ERP adoption and implementation decision is mainly affected by its internal environment. Defying the conventional wisdom, the firm’s external environment has little influence on its decision to adopt and implement ERP. However, through the mediating role of an internal environment, an external environment still indirectly influences the ERP adoption and ERP implementation decision. Also, the authors found that ERP could enhance the ERP adopter’s organizational capability and supplier capability. Originality/value – This study is one of a few attempts to investigate the role of ERP in the supply chain and identify important determinants influencing the ERP adoption and implementation decisions. Especially, in contrast with the previous literature which often gauged the benefits of ERP from an ERP adopter’s standpoint, this paper is one of the few to assess the benefits of ERP from the ERP adopter’s supply chain partners standpoints. Also, it is one of the first to assess the impact of ERP on supplier capability, organizational capability, and customer value.

PurposeThrough an empirical study, this paper identifies a multitude of drivers that facilitate or hinder the implementation of enterprise resource planning (ERP) in business environments. Also, the purpose of this paper is to analyze its role in supply chain operations and assesses its impact on supplier capabilities and performances from supply chain perspectives.Design/methodology/approachBased on both a contingency theory and a resource‐based view (RBV) of the firm, the research develops a series of hypotheses regarding the use of ERP for strategic sourcing. A large‐scale survey of Korean manufacturers and their suppliers was conducted. A structural equation model was used for data analysis.FindingsThe firm's external environment (EE) has little influence on its decision to adopt and implement ERP. However, through the mediating role of an internal environment (IE), an EE still indirectly influences the ERP adoption and ERP implementation (ERPI) decision. Also, the paper found that ERP could enhance the ERP adopter's supplier capability (SCAP).Originality/valueThis study investigates the role of ERP in the supply chain and identifies important determinants influencing the ERP adoption and implementation decisions. Especially, this paper assesses the benefits of ERP from the ERP adopter's supply chain partner's standpoints.

This chapter argues that with the present state of enterprise resource planning (ERP) adoption by the companies, the potential benefits of supply chain management (SCM) and integration is about to be unleashed. This chapter presents the results and the implications of a survey on ERP adoption in the 500 largest Danish enterprises. The study is based on telephone interviews with ERP managers in 88.4% of the “top 500” enterprises in Denmark. Based on the survey, the chapter suggests the following four propositions: (1) ERP has become the pervasive infra-structure; (2) ERP has become a contemporary technology; (3) ERP adoption has matured; and (4) ERP adoption is converging towards a dominant design. Finally, the chapter discusses the general implications of the surveyed state of practice on the SCM research challenges. Consequently, we argue that research needs to adjust its conceptions of the ERP concept towards ERP II in order to accommodate to the emerging practices.Request access from your librarian to read this chapter's full text.

This article argues that with the present state of enterprise resource planning (ERP) adoption by the companies, the potential benefits of supply chain management (SCM) and integration is about to be unleashed. This article presents the results and the implications of a survey on ERP adoption in the 500 largest Danish enterprises. The study is based on telephone interviews with ERP managers in 88.4% of the “top 500” enterprises in Denmark. Based on the survey, the article suggests the following four propositions: (i) ERP has become the pervasive infrastructure; (ii) ERP has become a contemporary technology; (iii) ERP adoption has matured; and (iv) ERP adoption is converging towards a dominant design. Finally, the article discusses the general implications of the surveyed state of practice on the SCM research challenges. Consequently we argue that research needs to adjust its conceptions of the ERP concept towards ERP II in order to accommodate to the emerging practices.

The adoption of Enterprise Resource Planning (ERP) system in small and medium enterprises (SMEs) could offer significant benefits in terms of managing the resources and support business function. However, the traditional ERP systems are quite expensive and have complex procedures for the adoption especially for SMEs. With the introduction of cloud-based ERP systems that have similar functionalities with traditional ERP, SMEs are now able to adopt this system. However, the adoption of cloud ERP remains low and question arise on how to encourage SMEs to adopt this system. Drawing from management and Information Systems literature, this study proposes and conceptual framework for cloud ERP adoption among SMEs. Using archival analysis approach and technology-push and demand-pull as the theoretical background, this research has come out with six main themes namely: firm qualities, internal pressure, external pressure, technology features, organizational readiness and external support. This paper will give significant benefits to ERP vendors to understand their potential buyer’s behaviour towards the adoption of cloud ERP.

We study the effects of technological change and adoption timing on firms’ liquidity management practices and subsequent product market outcomes. We first posit that investment in Enterprise Resource Planning (ERP) software improves trade credit and inventory efficiencies between supply chain partners. We identify exogenous variation in the timing of a firm’s incentives to implement ERP by using a firm’s ex-ante exposure to the Year 2000 bug (Y2K). Our results show that a firm’s average accounts receivable collection period and inventory turnover improve following ERP implementation in the supply chain. Interestingly, this is due to adoption by either the focal firm or its key customer. ERP adoption also increases a firm’s subsequent market share, but only for non-early adopters. This pattern suggests that early adopters of transformational technologies bear higher implementation costs that spill over to the advantage of both trading partners and competitors. Documenting these mechanisms yields insight into the boundary conditions of first-mover advantage, particularly in the early years of a significant technological advance.

Based on the theory of reasoned action (TRA) and the diffusion of innovation framework, this study examines the key determinants and outcomes of enterprise resource planning (ERP) adoption. The study specifically investigated the impact of system quality and user training on ERP adoption intention. Further, the impacts of ERP adoption intention and personal innovativeness on ERP adoption were also studied. User satisfaction with ERP and user engagement were considered as the two outcomes of ERP adoption. To achieve these objectives, an online survey was conducted and data was collected from 180 ERP users across multiple industries in India to understand their perception of such matters. Structural equation modeling using the partial least square approach was used to test the proposed hypotheses. The results of SEM analysis supported all the hypotheses under investigation. These results provide relevant evidence that may encourage organizations to understand the key determinants of successful ERP adoption and its significant impacts on user satisfaction with ERP and user engagement.

In the era of Industry 4.0, many companies demand to determine a Change Management Strategy in order to maximize capacities and efficiency. Currently, PT XYZ sees existing problems in the IT division, which are not meeting demands as expected and slowing down the whole organization’s development. In accordance with these problems, Project Monitoring methods are proposed to be applied in PT XYZ’s organizational structure as a result of the Change Management Strategy. A Change Management Strategy will be implemented in the IT division using the proposed methods; Kotter’s Model and 7-S Framework followed by the development of a project monitoring application called Dashboard Monitoring. In accordance, with Kotter’s Model’s approach, the creation of two new positions is highly recommended inside the IT division to support its effectiveness. These positions are Project Management Officers and Business Analysts. These two positions are expected to focus more on the process of developing new applications and/or systems. Thus, the 7-S Framework implementation will be supporting the change of Shared & Value from the change in the organizational structure of PT XYZ with the objective of simplifying the process of analyzing and decision-making at the managerial level, especially in terms of deciding to create an application. Furthermore, a Dashboard Monitoring application has been implemented in PT XYZ, resulting in improvements in lead time and productivity throughout multiple IT projects. Objective – Developments in the era of Industry 4.0 make all companies adapt towards digitalization, to determine Change Management Strategies to maximize capacity and efficiency. PT XYZ sees problems in the IT division, where the IT Division cannot meet the demands as expected. Thus, resulting in delays in the development of the organization. Obstacles in processing so many requests in making applications between divisions in the company, developing a product application system is the biggest obstacle faced by PT XYZ. Methodology – The author uses the following Research Methodology; (1) understand the identification of existing problems based on the author's observations and communication with PT XYZ; (2) study the organizational structure: (3) Literature Review; (4) Interviews and observations at PT XYZ. The first stage is interviews with all Vice Presidents from all divisions at PT. XYZ. The second stage is an interview by asking the Chief Executive Officer of the company regarding information related to changes in the IT Division. ; (5) Kotter Framework and 7-S approaches, all of which start with analyzing with Dynamic Capability Theory; (6) Provide recommendations, propose to create a new IT division, then analyze the new organizational structure using the 7-S Framework and produce proposed new values. Findings – The author got information from PT XYZ Top Management, where from the results of this interview a Change Management Strategy is proposed to be implemented in the organizational structure of PT XYZ. The Change Management Strategy will be implemented in the IT division using the proposed method, namely the Kotter Model and the 7-S Framework, which were previously analyzed using the Dynamic Capability approach. Then followed by the development of a project monitoring application called Dashboard Monitoring. Novelty – The author implementing the 7-S Framework to support Shared & Value changes from changes in PT XYZ's organizational structure. Next implement the Kotter Model Strategy which explains 8 Strategies to produce recommendations for changes to PT XYZ's organizational structure, by adding the positions of PMO (Project Management Officer) and BA (Business Analyst). In addition, the Dashboard Monitoring application was also implemented at PT XYZ, resulting in increased lead time and productivity in various IT projects.

Building responsive and resilient supply chains: Lessons from the <scp>COVID</scp>‐19 disruption

This study investigates the influence of Enterprise Resource Planning (ERP) implementation on the efficiency of supply chain management at Bizware International Pvt. Ltd. ERP systems are designed to integrate and automate business processes, enabling improved coordination across supply chain functions such as procurement, inventory management, and distribution. The research examines how the adoption of ERP has impacted operational performance, focusing on key factors like process optimization, cost reduction, and timely delivery. Data was collected through interviews, observations, and company records to analyze pre- and post-implementation performance metrics. The findings reveal that ERP implementation has significantly enhanced supply chain visibility and communication, resulting in improved resource utilization and customer satisfaction. However, the study also identifies challenges including system adaptation and training requirements. This research provides valuable insights for organizations considering ERP solutions to boost their supply chain efficiency and offers recommendations for effective implementation strategies.

ABSTRACTIn recent years, the adoption of enterprise resource planning (ERP) is becoming essential for achieving fast and transparent information exchange, avoiding unnecessary waste and maintaining coordination within a firm and among partners in a supply chain. However, the implementation of an ERP system often fails, and one major reason is that the selected ERP system is not suitable for the firm. Therefore, a good evaluation framework for selecting the most appropriate ERP system is necessary. This study proposes a framework, which integrates decision-making trial and evaluation laboratory (DEMATEL), analytic network process (ANP), VlseKriterijumska Optimizacija I Kompromisno Resenje in Serbian (VIKOR) and fuzzy set theory, for the evaluation of ERP systems. First, the fuzzy DEMATEL is used to understand the direct and indirect relationships among the criteria. Second, the fuzzy ANP is adopted to calculate the importance weights of the sub-criteria. Finally, the most appropriate ERP system is obtained by the fuzzy VIKOR. The proposed decision-making framework is applied to a firm in the high-tech industry in selecting the most appropriate ERP system. The results show that the proposed framework can help firms evaluate ERP systems effectively by collecting experts’ opinions in an uncertain environment.

PurposeProposes providing an insight about enterprise resource planning (ERP) adoption, highlighting contact points and significant differences between the way small to medium‐sized enterprises (SMEs) and large companies approach such a task.Design/methodology/approachThe research is based on a wide literature review, focused on the identification of a taxonomy of business and organizational factors influencing ERP adoption. The deriving research model was incorporated in a questionnaire that was preliminarily tested and finally provided to a sample of 366 companies of any size. Responses were collected through personal interviews made by a dedicated team to a top manager.FindingsThe analysis of the empirical data shows that business complexity, as a composed factor, is a weak predictor of ERP adoption, whereas just company size turns out to be a very good one. In other words, companies seem to be disregarding ERP systems as an answer to their business complexity. Unexpectedly, SMEs disregard financial constraints as the main cause for ERP system non‐adoption, suggesting structural and organizational reasons as major ones. This pattern is partially different from what was observed in large organizations where the first reason for not adopting an ERP system is organizational. Moreover, the decision process regarding the adoption of ERP systems within SMEs is still more affected by exogenous reasons or “opportunity of the moment” than business‐related factors, contrary to large companies that are more interested in managing process integration and data redundancy/inconsistency through ERP implementation.Research limitations/implicationsThe research model is based on the assumption that business complexity and organizational change are the most relevant variables influencing ERP adoption, and such variables are explained through a set of factors inherently limited by the results of the literature review.Practical implicationsThe results of the empirical research provide indication to SMEs willing to take into consideration the adoption of an ERP system. The same outcomes could be incorporated into the development strategies of ERP software houses.Originality/valueThis paper contributes to enhancing the understanding of the factors influencing the evolution of information systems within SMEs with respect to large companies.

PurposeThe purpose of this paper is to identify the impact of enterprise systems (ESs), in particular radio frequency identification (RFID) and enterprise resource planning (ERP) systems, on supply chain management (SCM). The results of this conceptual paper demonstrate that ERP and RFID systems contribute to SCM by improving supply chain integration. Supply chain integration occurs to facilitate the flow of financing, products, and information throughout the chain. In this regard, ERP and RFID contribute to integration by enhancing the information flow across the supply chain.Design/methodology/approachThis paper proposes a conceptual model developed from the findings of literature review within the research domains of SCM, ESs, and supply chain integration.FindingsThis conceptual study contributes to the existing theory by linking the concept of information technology, ESs to SCM. The conceptual model in this paper may provide insights for executives who wish to implement ERP or RFID systems in their businesses in order to achieve higher integration, both within internal sectors and also with supply chain partners.Originality/valueThe findings in this study contribute to the theory base by linking the concept of information technologies, ESs to SCM. The conceptual model presented in this paper can provide insights for executives who wish to implement ERP or RFID systems in their businesses in order to achieve higher integration within internal sectors and with supply chain partners. This study offers new understandings by investigating the impact of ERP and RFID together on SCM.

Rising healthcare costs force healthcare organizations worldwide to reconsider their business strategies. Hospital managers are tasked with lowering operating costs while upholding the high quality of care, two goals perceived as contradictory by many healthcare professionals. Attempting to contribute towards reaching these goals, the study explores the digitalization of the healthcare supply chain through the adoption of enterprise resource planning (ERP) systems and its impact on hospital supply chain costs. Established technology adoption theories are synthesized to develop a research model that investigates the adoption of hospital ERP systems and its impact on supply chain cost performance. The framework is validated via structural equation modeling (SEM) with data collected from 107 Greek public hospitals. The results indicate that technological and organizational readiness, hospital size, governmental policies, and perceived benefits have a significant influence on the extent of ERP systems adoption. They also demonstrate a statistically significant association between the use of ERP systems and hospital supply chain costs. The present study highlights the influencing factors of ERP systems adoption in hospitals and provides empirical evidence on the resulting cost benefits., This implies greater urgency for hospitals to digitalize their supply chain by implementing and fully exploiting the ERP systems’ functionality in order to reach their goal of delivering quality care at a lower cost.

Public sector reform has gained momentum worldwide, driven by the need for efficiency, accountability, and service improvement. Amid these efforts, the adoption of Enterprise Resource Planning (ERP) systems has emerged as a promising solution to modernize public sector operations. This study aims to provide a comprehensive understanding of the factors influencing ERP implementation in public sector reform through a Systematic Literature Review (SLR) of studies published from 2020 to 2024. The research examines three critical dimensions: technological, organizational, and institutional factors. Findings reveal that IT infrastructure readiness, system compatibility, and digital innovation are pivotal to the success of ERP systems, while organizational challenges such as bureaucratic structures and change resistance hinder effective implementation. Additionally, coercive, normative, and mimetic pressures from government policies and international standards drive ERP adoption. This research underscores the importance of a contextualized approach that integrates external pressures with internal readiness for digital transformation. The study contributes to ERP literature by offering a holistic view of public sector ERP challenges and opportunities and provides recommendations for policymakers to facilitate successful ERP adoption. Future research should explore cross-country comparisons and empirical case studies to further understand the nuanced implementation processes in different national contexts.