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The Role of Top Management Commitment to Enhancing the Competitive Advantage Through ERP Integration and Purchasing Strategy

The Role of Top Management Commitment to Enhancing the Competitive Advantage Through ERP Integration and Purchasing Strategy

Zeplin Jiwa Husada Tarigan, Hotlan Siagian, Ferry Jie
Copyright: © 2020 |Volume: 16 |Issue: 1 |Pages: 16
ISSN: 1548-1115|EISSN: 1548-1123|EISBN13: 9781799805014|DOI: 10.4018/IJEIS.2020010103
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MLA

Tarigan, Zeplin Jiwa Husada, et al. "The Role of Top Management Commitment to Enhancing the Competitive Advantage Through ERP Integration and Purchasing Strategy." IJEIS vol.16, no.1 2020: pp.53-68. http://doi.org/10.4018/IJEIS.2020010103

APA

Tarigan, Z. J., Siagian, H., & Jie, F. (2020). The Role of Top Management Commitment to Enhancing the Competitive Advantage Through ERP Integration and Purchasing Strategy. International Journal of Enterprise Information Systems (IJEIS), 16(1), 53-68. http://doi.org/10.4018/IJEIS.2020010103

Chicago

Tarigan, Zeplin Jiwa Husada, Hotlan Siagian, and Ferry Jie. "The Role of Top Management Commitment to Enhancing the Competitive Advantage Through ERP Integration and Purchasing Strategy," International Journal of Enterprise Information Systems (IJEIS) 16, no.1: 53-68. http://doi.org/10.4018/IJEIS.2020010103

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Abstract

The role of the top management commitment is in enhancing the competitive advantage through ERP integration and the purchasing strategy. Data were collected using questionnaires from 49 manufacturing companies domiciled in the region of East Java, Indonesia. PLS technique was used to analyze the data. The result of the study indicated that top management commitment influences ERP integration and the purchasing strategy, top management commitment influences the competitive advantage, ERP integration affects the purchasing strategy, and ERP integration and purchasing strategy influences the competitive advantage. One of the most exciting findings revealed that ERP integration and purchasing strategy mediated the influence of top management commitment on the competitive advantage. Top management influences, directly and indirectly, the competitive advantage. This result provides the managerial implication that the management needs to establish an ERP integration and define a proper purchasing strategy in enhancing the competitive advantage of the manufacturing company.

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