The Impact of Information System Implementation to the Integrated System for Increasing the Supply Chain Performance of Manufacturing Companies

Abstract

This study examines the impact of information system management implementation on the company performance with the mediating role of process innovation and process innovation. Data collection is conducted by distributing questionnaires to, and through interviews with the respondents engaged in the department of the information system of 41 companies in Surabaya, Indonesia. The questionnaire is designed using a five-point Likert scale ranging from 1: strongly disagree up to 5: strongly agree. The data analysis uses smart PLS software version 3.0. The study found that the implementation of a management information system directly affects the process of innovation. The implementation of a management information system also directly influences product innovation. The implementation of a management information system does not directly affect the supply chain performance. The process innovation improves product innovation. Process innovation does not provide a direct impact on supply chain performance. Product innovation directly gives an impact on the improvement of the performance. In total, the implementation of management information systems affects supply chain performance through the process innovation and product innovation by the coefficient of 0.526. This study contributes to the current research on supply chain management and paves the way for managers to improve the supply chain performance by implementing the management information system, product innovation, and process innovation.