THE EFFECT OF ENTERPRISE RESOURCE PLANNING ON COMPETITIVE ADVANTAGE

This study examines the effect of enterprise resource planning (ERP) system on the competitive advantage with the mediating role of supplier relationship management. The study used 59 samples from the executive level of the export-oriented manufacturer in the region of East Java, Indonesia. Data collection used questionnaires designed with a five-point Likert scale. Data analysis was performed using smartPLS software. The study result revealed that the ERP system used by the corporate affects the improvement of the supplier relationship management significantly. The ERP system used by the company has a direct impact on strengthening its competitive advantage. Furthermore, supplier relationship management also affects the competitive advantage directly and significantly. To sum up, the ERP system significantly influences the competitive advantage, directly and indirectly, as indicated by the path coefficient of 0.865. A new finding suggests that supplier relationship management mediates the effect of ERP on a competitive advantage. These results provide a significant contribution to the supply chain theory and practice.