The effect of middle manager engagement on SCM performance through ERP system and SCM practices

Abstract

Partnerships will give a new demand for manufacturing companies to build a data integration system that can synchronize quickly. This condition will provide the company with best practices in carrying out the operations in an integrated manner with suppliers and distributors and customers. Supply chain integration (SCI) as a form of supply chain best practice is obtained by the implementation of technology enterprise resource planning (ERP) so that the data are obtained at the right time, complete and accurate. The supply chain best practices and the ERP can increase the supply chain management performance flow. The implementation of the SCM and ERP system is the responsibility of the middle manager. The distribution of questionnaires is carried out to 60 industries and 80 questionnaires, with a response rate of 74%, which can be further processed with PLS analysis. The results of the data processing show that the middle manager engagement is able to bring a positive impact on the implementation of ERP systems and SCM practices. Then, the middle manager engagement is able to bring a positive impact to the SCM performance by reducing the company's operational costs. The ERP system implementation in the company can have an impact on SCM practice and performance. The SCM practices that have been continuously impacting on SCM performance.