The influence of ERP system to the company performance seen through innovation process, information quality, and information sharing as the intervening variables

Abstract

Enterprise Resource Planning (ERP) system is an integrated information technology that combines all departments in a company with a single data entry. The ERP system is used to obtain quality information so that the head of the companies can easily make decisions accurately and timely. The information is also distributed among all related departments through sharing information. The quality information can improve the innovation process and company performance. Based on the questionnaires distributed to manufacturing companies in East Java and the data processed by SEM PLS, there are several conclusions. First, the ERP directly influences the information sharing but does not significantly influence the information quality. Second, innovation sharing influences directly the information quality and innovation process, but it does not give impacts to the operational performance. Third, the innovation quality has an impact on the innovation process and the operational performance. Fourth, the innovation process has a positive and significant impact directly to the operational performance