Leader Commitment on the ERP Performance Through Information Technology Capability and Inventory Management

Tarigan, Zeplin Jiwa Husada and Siagian, Hotlan (2020) Leader Commitment on the ERP Performance Through Information Technology Capability and Inventory Management. [UNSPECIFIED]

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Abstract

This study examines the effect of leader commitment on ERP performance through information technology capability and inventory management. The research used 63 samples from the managerial level of the manufacturer industry in the province of East Java, Indonesia. Data collection was conducted using a grant from the Government of Indonesia. The questionnaire is designed with a five-point Likert scale. Data analysis was conducted using the partial least square technique with Smart PLS software. The results of the study revealed that leader commitment affects IT capability, ERP performance, and inventory management. Furthermore, IT capability influences inventory management and ERP performance. Inventory management also affects ERP performance. One of the interesting findings is proof that IT capability and inventory management mediates the effect of leader commitment on ERP performance. These results of the study provide a significant contribution to the supply chain theory and practice. The result of the study also provides a managerial implication in enhancing the ERP performance by improving leader commitment, enhancing IT capability, and applying excellent inventory management.

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