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The Impact of Organizational Commitment in Upgrading ERP for Maintaining the Quality of Information towards the Performance

Tarigan, Zeplin Jiwa Husada and Lianto, and Basana, Sautma Ronni (2019) The Impact of Organizational Commitment in Upgrading ERP for Maintaining the Quality of Information towards the Performance. [UNSPECIFIED]

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        Abstract

        Many manufacturing companies in East Java have been implementing ERP in managing their business. Although the ERP post-implementation has been continuously maintained by these companies, the inevitable changes and development in the current business practices have forced them to upgrade their ERP infrastructure. All ERP system upgrades require a commitment from both management and employees, which is also known as the organizational commitment. This research is conducted by surveying 110 manufacturing companies in East Java which have been implementing ERP for more than two years. The response rate is quite good, as many as 90 questionnaires (81.81%) out of 110 distributed questionnaires are completed by the respondents. The results of processing the data using PLS show that the organizational commitment brings a significant impact to the ERP infrastructure upgrade as much as 0.537. While the organization commitment shows a significant impact of 0.403 towards the information quality. The organization commitment does not show a direct impact towards the ERP performance. Similarly, the ERP infrastructure upgrade also shows a significant impact of 0.408 towards the information quality. The ERP infrastructure upgrade does not show a direct impact on the ERP performance. The information quality contributes to a positive impact of 0.389. The total impact of the organizational commitment towards the ERP performance is 0.518. The management commitment empowers the key user to be aware of the ERP system upgrading all the time. By keeping the ERP to the most up-to-date condition will contribute to the high quality of the information. Furtherly, the best information quality provides the appropriate information in term of the right time and the right information in the decision making process. The appropriate information enables the top management to decide in the pursuit of improving the company performance

        Item Type: UNSPECIFIED
        Subjects: T Technology > TS Manufactures
        H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
        Divisions: Graduate Program > Economic Management
        Depositing User: Admin
        Date Deposited: 22 Mar 2019 21:55
        Last Modified: 28 May 2022 11:06
        URI: https://repository.petra.ac.id/id/eprint/19195

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