IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2022i9p4944-d798013.html
   My bibliography  Save this article

Assessing the Benefit of Adopting ERP Technology and Practicing Green Supply Chain Management toward Operational Performance: An Evidence from Indonesia

Author

Listed:
  • Ruben Wahyu Santoso

    (Master of Management Department, Petra Christian University, Surabaya 60236, Indonesia)

  • Hotlan Siagian

    (Master of Management Department, Petra Christian University, Surabaya 60236, Indonesia)

  • Zeplin Jiwa Husada Tarigan

    (Master of Management Department, Petra Christian University, Surabaya 60236, Indonesia)

  • Ferry Jie

    (School of Business and Law, Edith Cowan University, Joondalup, WA 6027, Australia)

Abstract

The recent concern on the environmental protection and COVID-19 issue is increasingly affecting the manufacturing industry. This research assessing the benefit of adopting ERP technology and practicing green supply chain management toward operational performance in manufacturing industry. The study is essential to provide insight for the manufacturing industry regarding the consequences and benefits of practicing the green supply chain and adopting ERP technology amid the current constraints of the environmental protection issue and the COVID-19 pandemic. The study has surveyed 122 companies domiciled in Indonesia. Data collection used a questionnaire designed with a seven-point Likert scale. Questionnaire created in Google form, printed and distributed using social media and postal mail. Data analysis used SmartPLS software version 3.0. The result revealed that ERP adoption enables green purchasing, production, distribution, and operational performance. Furthermore, operating performance is directly affected by green purchasing and green production. However, operating performance was not supported by green distribution. In addition, ERP adoption indirectly improves operational performance through green purchasing and green production. But ERP adoption did not affect operational performance through green distribution. This result provides essential insight for the manager in the manufacturing industry that adopting ERP in the era of the COVID-19 pandemic and practicing environmental protection such as green purchasing, green production enhances operational performance. In summary, the result of this study encourages the practitioner to adopt environmental protection in running their business since it benefits the company. While there are very few studies examining the relationship between ERP adoption, green supply chain practices, and operational performance, this study is essential in terms of exploring the mediating role of green supply chain practices on the effect of ERP adoption on operational performance. Thus, these research findings could enrich the current research in the supply chain management context.

Suggested Citation

  • Ruben Wahyu Santoso & Hotlan Siagian & Zeplin Jiwa Husada Tarigan & Ferry Jie, 2022. "Assessing the Benefit of Adopting ERP Technology and Practicing Green Supply Chain Management toward Operational Performance: An Evidence from Indonesia," Sustainability, MDPI, vol. 14(9), pages 1-21, April.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:9:p:4944-:d:798013
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/9/4944/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/14/9/4944/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Rok Lee, 2021. "The Effect of Supply Chain Management Strategy on Operational and Financial Performance," Sustainability, MDPI, vol. 13(9), pages 1-18, May.
    2. Zhu, Wenge & He, Yuanjie, 2017. "Green product design in supply chains under competition," European Journal of Operational Research, Elsevier, vol. 258(1), pages 165-180.
    3. Zeplin Jiwa Husada Tarigan & Hotlan Siagian & Ferry Jie, 2021. "Impact of Enhanced Enterprise Resource Planning (ERP) on Firm Performance through Green Supply Chain Management," Sustainability, MDPI, vol. 13(8), pages 1-20, April.
    4. Theodor Purcărea & Valeriu Ioan-Franc & Ştefan-Alexandru Ionescu & Ioan Matei Purcărea & Victor Lorin Purcărea & Irina Purcărea & Maria Cristina Mateescu-Soare & Otilia-Elena Platon & Anca-Olguța Orza, 2022. "Major Shifts in Sustainable Consumer Behavior in Romania and Retailers’ Priorities in Agilely Adapting to It," Sustainability, MDPI, vol. 14(3), pages 1-51, January.
    5. Govindan, Kannan & Kaliyan, Mathiyazhagan & Kannan, Devika & Haq, A.N., 2014. "Barriers analysis for green supply chain management implementation in Indian industries using analytic hierarchy process," International Journal of Production Economics, Elsevier, vol. 147(PB), pages 555-568.
    6. Shaorui Li & Vaidyanathan Jayaraman & Antony Paulraj & Kuo-chung Shang, 2016. "Proactive environmental strategies and performance: role of green supply chain processes and green product design in the Chinese high-tech industry," International Journal of Production Research, Taylor & Francis Journals, vol. 54(7), pages 2136-2151, April.
    7. Jörg Henseler & Marko Sarstedt, 2013. "Goodness-of-fit indices for partial least squares path modeling," Computational Statistics, Springer, vol. 28(2), pages 565-580, April.
    8. Tenenhaus, Michel & Vinzi, Vincenzo Esposito & Chatelin, Yves-Marie & Lauro, Carlo, 2005. "PLS path modeling," Computational Statistics & Data Analysis, Elsevier, vol. 48(1), pages 159-205, January.
    9. Evangelia Sdrolia & Grigoris Zarotiadis, 2019. "A Comprehensive Review For Green Product Term: From Definition To Evaluation," Journal of Economic Surveys, Wiley Blackwell, vol. 33(1), pages 150-178, February.
    10. Rameshwar Dubey & Surajit Bag & Sadia Samar Ali & V.G. Venkatesh, 2013. "Green purchasing is key to superior performance: an empirical study," International Journal of Procurement Management, Inderscience Enterprises Ltd, vol. 6(2), pages 187-210.
    11. Xin Yao & Yuanyuan Cheng & Li Zhou & Malin Song, 2022. "Green efficiency performance analysis of the logistics industry in China: based on a kind of machine learning methods," Annals of Operations Research, Springer, vol. 308(1), pages 727-752, January.
    12. Wael Hassan El-Garaihy & Usama A. Badawi & Walid A. S. Seddik & M. Sh. Torky, 2022. "Investigating Performance Outcomes under Institutional Pressures and Environmental Orientation Motivated Green Supply Chain Management Practices," Sustainability, MDPI, vol. 14(3), pages 1-23, January.
    13. Lai, Kee-hung & Wong, Christina W.Y., 2012. "Green logistics management and performance: Some empirical evidence from Chinese manufacturing exporters," Omega, Elsevier, vol. 40(3), pages 267-282.
    14. Yu, Kangkang & Cadeaux, Jack & Luo, Ben Nanfeng, 2015. "Operational flexibility: Review and meta-analysis," International Journal of Production Economics, Elsevier, vol. 169(C), pages 190-202.
    15. Zeplin Jiwa Husada Tarigan & Hotlan Siagian & Ferry Jie, 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), IGI Global, vol. 16(1), pages 53-68, January.
    16. Luísa Pinto, 2020. "Green supply chain practices and company performance in Portuguese manufacturing sector," Business Strategy and the Environment, Wiley Blackwell, vol. 29(5), pages 1832-1849, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mohamed Rafik Noor Mohamed Qureshi, 2022. "Evaluating Enterprise Resource Planning (ERP) Implementation for Sustainable Supply Chain Management," Sustainability, MDPI, vol. 14(22), pages 1-21, November.
    2. Nishant Saravanan & Jessica Olivares-Aguila & Alejandro Vital-Soto, 2022. "Bibliometric and Text Analytics Approaches to Review COVID-19 Impacts on Supply Chains," Sustainability, MDPI, vol. 14(23), pages 1-33, November.
    3. Mohamed Abdalla Nour, 2023. "The Impact of ERP Systems on Organizational Performance: The Role of Antecedents and Moderators," International Journal of Enterprise Information Systems (IJEIS), IGI Global, vol. 19(1), pages 1-29, January.
    4. Rita Parmawati & Fadli Mulyadi & Rosyani Rosyani & Suaedi Suaedi & Yunikewaty Yunikewaty, 2023. "The Role of Environmental Education and Green Supply Chain Practices in Achieving Sustainable Development: Evidence from Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 13(1), pages 421-430, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Waqar Ahmed & Muhammad Saeed Ashraf & Sharfuddin Ahmed Khan & Simonov Kusi-Sarpong & Francis Kow Arhin & Horsten Kusi-Sarpong & Arsalan Najmi, 2020. "Analyzing the impact of environmental collaboration among supply chain stakeholders on a firm’s sustainable performance," Operations Management Research, Springer, vol. 13(1), pages 4-21, June.
    2. M. K. Dhillon & P. M. Rafi-Ul-Shan & H. Amar & F. Sher & S. Ahmed, 2023. "Flexible Green Supply Chain Management in Emerging Economies: A Systematic Literature Review," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 24(1), pages 1-28, March.
    3. Hoyoung Lee, 2020. "The Role of Environmental Uncertainty, Green HRM and Green SCM in Influencing Organization s Energy Efficacy and Environmental Performance," International Journal of Energy Economics and Policy, Econjournals, vol. 10(3), pages 332-339.
    4. Soana, Maria Gaia, 2024. "Environmental strategies, environmental performance and board sustainability committees: Are financial and non-financial companies different?," Research in International Business and Finance, Elsevier, vol. 69(C).
    5. Kerbouche Mohammed & Bouguesri Imene, 2020. "A Structural Analysis of the Chinese Patriarchal Family Business Model: What Happens in the Corridors of the Shrine?," Economics and Business, Sciendo, vol. 34(1), pages 224-245, February.
    6. Xiaoli Zhang & Guoyi Xiu & Fakhar Shahzad & Yupeng Duan, 2021. "Optimal Financing Strategy in a Capital-Constrained Supply Chain with Retailer Green Marketing Efforts," Sustainability, MDPI, vol. 13(3), pages 1-19, January.
    7. Insu Cho & Young Hoon Kwak & Jaehyeon Jun, 2019. "Sustainable Idea Development Mechanism in University Technology Commercialization (UTC): Perspectives from Dynamic Capabilities Framework," Sustainability, MDPI, vol. 11(21), pages 1-16, November.
    8. Judit Oláh & Yusmar Ardhi Hidayat & Zdzisława Dacko-Pikiewicz & Morshadul Hasan & József Popp, 2021. "Inter-Organizational Trust on Financial Performance: Proposing Innovation as a Mediating Variable to Sustain in a Disruptive Era," Sustainability, MDPI, vol. 13(17), pages 1-18, September.
    9. Blanco-Oliver, Antonio & Irimia-Dieguez, Ana & Reguera-Alvarado, Nuria, 2016. "Prediction-oriented PLS path modeling in microfinance research," Journal of Business Research, Elsevier, vol. 69(10), pages 4643-4649.
    10. Wan, Calvin & Shen, Geoffrey Qiping & Yu, Ann, 2014. "The role of perceived effectiveness of policy measures in predicting recycling behaviour in Hong Kong," Resources, Conservation & Recycling, Elsevier, vol. 83(C), pages 141-151.
    11. E. Raguseo & Pigni, F. & Claudio Vitari, 2021. "Streams of digital data and competitive advantage: The mediation effects of process efficiency and product effectiveness," Grenoble Ecole de Management (Post-Print) hal-03323663, HAL.
    12. Donny Oktavian Syah, 2019. "Identifying vertical partnership among automotive component companies: empirical evidence from automotive industry in Jabodetabek, Indonesia," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 8(1), pages 1-25, December.
    13. Wu, Kuo-Jui & Liao, Ching-Jong & Tseng, Ming-Lang & Chiu, Anthony S.F., 2015. "Exploring decisive factors in green supply chain practices under uncertainty," International Journal of Production Economics, Elsevier, vol. 159(C), pages 147-157.
    14. Florian Schuberth & Jörg Henseler & Theo K. Dijkstra, 2018. "Partial least squares path modeling using ordinal categorical indicators," Quality & Quantity: International Journal of Methodology, Springer, vol. 52(1), pages 9-35, January.
    15. Sener, Abdurrezzak & Barut, Mehmet & Oztekin, Asil & Avcilar, Mutlu Yuksel & Yildirim, Mehmet Bayram, 2019. "The role of information usage in a retail supply chain: A causal data mining and analytical modeling approach," Journal of Business Research, Elsevier, vol. 99(C), pages 87-104.
    16. Eijaz Ahmed Khan & Pradip Royhan & M. Ashiqur Rahman & Mohammed Mizanur Rahman & Ahmed Mostafa, 2019. "The Impact of Enviropreneurial Orientation on Small Firms’ Business Performance: The Mediation of Green Marketing Mix and Eco-Labeling Strategies," Sustainability, MDPI, vol. 12(1), pages 1-17, December.
    17. Jörg Henseler, 2018. "Partial least squares path modeling: Quo vadis?," Quality & Quantity: International Journal of Methodology, Springer, vol. 52(1), pages 1-8, January.
    18. Wentao Yi & Zhongwei Feng & Chunqiao Tan & Yuzhong Yang, 2021. "Green Supply Chain Management with Nash Bargaining Loss-Averse Reference Dependence," Mathematics, MDPI, vol. 9(24), pages 1-26, December.
    19. Joseph F. Hair & G. Tomas M. Hult & Christian M. Ringle & Marko Sarstedt & Kai Oliver Thiele, 2017. "Mirror, mirror on the wall: a comparative evaluation of composite-based structural equation modeling methods," Journal of the Academy of Marketing Science, Springer, vol. 45(5), pages 616-632, September.
    20. Ardian Qorri & Saranda Gashi & Andrzej Kraslawski, 2021. "Performance outcomes of supply chain practices for sustainable development: A meta‐analysis of moderators," Sustainable Development, John Wiley & Sons, Ltd., vol. 29(1), pages 194-216, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:14:y:2022:i:9:p:4944-:d:798013. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.