The effect of key user capability on supply chain digital and flexibility in improving financial performance

Abstract

Organizational competitiveness is enhanced by implementing supply chain integration. Organizations, through information technology, can integrate internal and external cross-functional. The team assigned to run the integration system in its function is designated as the key user who can implement and maintain an ongoing basis. Key user capabilities are needed to maintain a digital supply chain in information technology systems to integrate internally and externally. Data analysis using Partial least squares (PLS) on 89 hotel organizations with a one-star category or more shows that key user capability significantly affects internal cross-functional integration (β = 0.728) and external cross-functional integration (β = 0.127). Key user capability has an impact on supply chain flexibility (β = 0.370) while internal cross-functional integration influences increasing supply chain flexibility (β = 0.373) and financial performance (β = 0.421). External cross-functional integration increases supply chain flexibility (β = 0.316) and financial performance (β = 0.441). Lastly, supply chain flexibility impacts increasing financial flexibility (β = 0.192). The research contributes enrichment to the theory of digital supply chain and practical contribution to enlighten top management in information technology investment.