The Impact of Enterprise Resources System and Supply Chain Practices on Competitive Advantage and Firm Performance: Case of Indonesian Companies

Enterprise resource planning (ERP) is the core of business information processing. ERP becomes one of the most important factor in business, regardless various core of business (financial, human resources, marketing, operations). Supply chain management (SCM) looks beyond the individual company, taking into account that enterprises are increasingly concentrating on their core competencies, leaving other activities to suppliers. ERP System helps companies to achieve it's competitive advantages by enhancing information flow of process through connected functional system between supplier, manufacture, distributor, even up to end user. The research was carried out for 148 Indonesia Companies’ executives. Hypotheses was tested using multiple regression path analysis. All the constructs or questions of this research were processed quantitatively using Serqual Equation Modelling (SEM). The results indicated that SCM practices has positive impact on competitive advantage (β = .56, p <.05). SCM practices has positive impact on firm performance (β = .58, p<.05). ERP systems is positively related to competitive advantage (β = .68, p>.50). ERP system has positive impact on firm performance (β = .54, p < .05). Finally, that competitive advantage positively affect the firm performance (β = .64, p > .05).