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

Zeplin Jiwa Husada Tarigan, Hotlan Siagian and Ferry Jie
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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

International Journal of Enterprise Information Systems (IJEIS), 2020, vol. 16, issue 1, 53-68

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.

Date: 2020
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