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Impact of Enhanced Enterprise Resource Planning (ERP) on Firm Performance through Green Supply Chain Management

Author

Listed:
  • Zeplin Jiwa Husada Tarigan

    (Department of Master Management, Faculty Business and Economics, Petra Christian University, Siwalankerto 121-131, Surabaya 60236, Indonesia)

  • Hotlan Siagian

    (Department of Master Management, Faculty Business and Economics, Petra Christian University, Siwalankerto 121-131, Surabaya 60236, Indonesia)

  • Ferry Jie

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

Abstract

This study investigates the impact of enhanced enterprise resource planning (ERP) on firm performance through green supply chain management, supplier integration, and internal integration. The population is the manufacturer domiciled in East Java, Indonesia, which has implemented ERP and been certified by the International Organization for Standardization (ISO) in the environmental management system. Data collection used a questionnaire designed with the five-point Likert scale. Of 243 manufacturers, 150 questionnaires were distributed, and 135 questionnaires are considered valid for analysis. Data analysis used smart PLS software. The result indicated that all eight predetermined hypotheses were supported. Enhanced ERP affects supplier integration, internal integration, and green supply chain management. Internal integration affects green supply chain management and firm performance. Supplier integration affects green supply chain management and firm performance. Green supply chain management affects firm performance. An interesting finding is that green supply chain management, internal integration, and supplier integration mediate the effect of enhanced ERP on firm performance. This study’s novelty lies in the research model that analyzes the relationship between the four constructs simultaneously with the green supply chain management, internal integration, and supplier integration as a mediating variable. The research provides an insight for the manager on how to improve the firm performance in supply chain management. This study could also contribute to the current research in supply chain management.

Suggested Citation

  • 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.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:8:p:4358-:d:535927
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    References listed on IDEAS

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    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. Naila Nureen & Da Liu & Muhammad Irfan & Maida Malik & Usama Awan, 2023. "Nexuses among Green Supply Chain Management, Green Human Capital, Managerial Environmental Knowledge, and Firm Performance: Evidence from a Developing Country," Sustainability, MDPI, vol. 15(6), pages 1-22, March.
    3. Codruța Cornelia Dura & Ana Maria Mihaela Iordache & Alexandru Ionescu & Claudia Isac & Teodora Odett Breaz, 2022. "Analyzing Performance in Wholesale Trade Romanian SMEs: Framing Circular Economy Business Scenarios," Sustainability, MDPI, vol. 14(9), pages 1-34, May.
    4. Muwen Wang & Kecheng Zhang, 2022. "Improving Agricultural Green Supply Chain Management by a Novel Integrated Fuzzy-Delphi and Grey-WINGS Model," Agriculture, MDPI, vol. 12(10), pages 1-19, September.
    5. 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.
    6. Changchun Li & Sen Wang, 2022. "Digital Optimization, Green R&D Collaboration, and Green Technological Innovation in Manufacturing Enterprises," Sustainability, MDPI, vol. 14(19), pages 1-20, September.

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