The effect of ERP on firm performance through information quality and supply chain integration in Covid-19 era

Abstract

The disruption caused by the COVID-19 pandemic has an imbalance between demand and supply in Indonesia's manufacturing industry. The products needed to handle the spread of the virus are in high order, and there is even a product shortage. Products that are not required to prevent a pandemic have stagnated so that the manufacturing industry suddenly reduces capacity. Manufacturing companies need to coordinate quickly to be able to adjust the disruption. Manufacturing companies already have an integrated information technology system that has been the primary process in Enterprise Resources Planning (ERP). Manufacturing companies make ERP their primary system, so they need to be updated and adjusted as needed. This study obtains a questionnaire from Indonesia's manufacturing industry using the google form link and distributed through social media WhatsApp, Facebook and Instagram. Data processing was carried out by using the partial least square of 285 manufacturing company respondents. The results showed that ERP sustainability was able to influence supply chain integration (internal and external). External integration has an impact on information quality, while internal integration does not affect. Supply chain integration and information quality affect increasing firm performance. Research makes a practical contribution to the industry in optimizing ERP systems in Pandemic conditions and a theoretical contribution to ERP sustainability as a mainstay in supply chain integration.