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

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  • Zeplin Jiwa Husada Tarigan

    (Petra Christian University, Surabaya, Indonesia)

  • Hotlan Siagian

    (Petra Christian University, Surabaya, Indonesia)

  • Ferry Jie

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

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.

Suggested Citation

  • 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.
    • Handle: RePEc:igg:jeis00:v:16:y:2020:i:1:p:53-68
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    Citations

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    Cited by:

    1. 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.
    2. 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.
    3. Abdulkareem Awwad & Abdel Latef M. Anouze & Nelson Oly Ndubisi, 2022. "Green Customer and Supplier Integration for Competitive Advantage: The Mediation Effect of Sustainable Product Innovation," Sustainability, MDPI, vol. 14(16), pages 1-19, August.
    4. Safinaz H. Abourokbah & Reem M. Mashat & Mohammad Asif Salam, 2023. "Role of Absorptive Capacity, Digital Capability, Agility, and Resilience in Supply Chain Innovation Performance," Sustainability, MDPI, vol. 15(4), pages 1-25, February.
    5. Zeplin Jiwa Husada Tarigan & Hotlan Siagian & Ferry Jie, 2021. "Impact of Internal Integration, Supply Chain Partnership, Supply Chain Agility, and Supply Chain Resilience on Sustainable Advantage," Sustainability, MDPI, vol. 13(10), pages 1-18, May.
    6. Hotlan Siagian & Zeplin Jiwa Husada Tarigan & Ferry Jie, 2021. "Supply Chain Integration Enables Resilience, Flexibility, and Innovation to Improve Business Performance in COVID-19 Era," Sustainability, MDPI, vol. 13(9), pages 1-19, April.

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