The Influence of ERP Implementation and Organization IT Strategy on Supply Chain Performance through Logistic Management : a Case Study of Food Industry in Thailand

Abstract

Industries give importance to the
Enterprise Resource Planning (ERP) system applying in
the organizational management for the utmost
effectiveness in the operation. This is to reduce the
overlapping of a lot of information in each department
International Journal of Applied Computer Technology and Information Systems: Volume 6, No.1, April 2016 - September 2016
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and help in the resources management and cut off the
unnecessary cost that will lead to the organizational
benefits in the long run. ERP implementation and
Organization IT strategy in the food supply chain shall be
integrated for the best effective use. The objectives of
this research were to study on the impact of ERP
implementation and Organization IT strategy over the
Supply Chain Management Performance.
The attitude rating of ERP implementation and
Organization IT strategy was used as the independent
variable whereas the logistic management was the
mediator variable and the dependent variable here was
the supply chain management performance. There were
325 sample firms from IT leaders or IT professionals
represented for the medium and large sizes of food
industry in Thailand. The data as gathered from the
researcher were analyzed using SEM for the model’s
validity and reliability determination. A structure
equation model was placed here for the hypothesized
model test and to assess for the total fit. It was confirmed
by the results of the study the significant support from
the goodness of fit and regression weight to every of
hypotheses.
From the hypotheses testing, ERP implementation
was found without the direct positive relationship with
the performance of supply chain and Organization IT
strategy was found the direct positive relationship with
the performance of supply chain, In addition, it also
presented the equally indirect positive relationship with
the logistic management in which indicated that the firm
shall implementation ERP and Organizational IT strategy
when having good logistic management. This showed
that ERP implementation and Organizational IT strategy
did not have any direct effect on the supply chain
management but must go through mediator respectively.