The Influence of IT Capability on Operational Performance Through Internal and External Integration: Evidence from Indonesia
During the Pandemic of COVID-19, many manufacturing companies around the world, such as Indonesia, experienced supply and demand disruption. The PMI index reflecting the operational performance declined to 27.5 in April 2020 from 45 in January 2020. This study investigates the influence of IT capab...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Vilnius University Press
2022-06-01
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| Series: | Organizations and Markets in Emerging Economies |
| Subjects: | |
| Online Access: | https://www.journals.vu.lt/omee/article/view/24882 |
| _version_ | 1811333275199733760 |
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| author | Steven Hadikusuma Hotlan Siagian |
| author_facet | Steven Hadikusuma Hotlan Siagian |
| author_sort | Steven Hadikusuma |
| collection | DOAJ |
| description |
During the Pandemic of COVID-19, many manufacturing companies around the world, such as Indonesia, experienced supply and demand disruption. The PMI index reflecting the operational performance declined to 27.5 in April 2020 from 45 in January 2020. This study investigates the influence of IT capability on operational performance through internal and external integration. The sample consists of 111 manufacturing companies, and data analysis adopts the Partial Least Square (PLS) approach with SmartPLS. The results revealed that nine hypotheses proposed were supported. First, IT capability directly affects internal, external integration, and operational performance. Second, internal and external integration affects operational performance. Third, IT capability indirectly affects operational performance through internal and external integration. This research paves a way on how to recover the operational performance during the pandemic. These findings also contribute to enriching and extending the acceptance of previous research in the manufacturing industry context.
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| first_indexed | 2024-04-13T16:50:00Z |
| format | Article |
| id | doaj.art-5fe3169d5dfb4425bb76bfde0d2d4e71 |
| institution | Directory Open Access Journal |
| issn | 2029-4581 2345-0037 |
| language | English |
| last_indexed | 2024-04-13T16:50:00Z |
| publishDate | 2022-06-01 |
| publisher | Vilnius University Press |
| record_format | Article |
| series | Organizations and Markets in Emerging Economies |
| spelling | doaj.art-5fe3169d5dfb4425bb76bfde0d2d4e712022-12-22T02:38:58ZengVilnius University PressOrganizations and Markets in Emerging Economies2029-45812345-00372022-06-0113110.15388/omee.2022.13.71The Influence of IT Capability on Operational Performance Through Internal and External Integration: Evidence from IndonesiaSteven Hadikusuma0Hotlan Siagian1Petra Christian University. IndonesiaPetra Christian University. Indonesia During the Pandemic of COVID-19, many manufacturing companies around the world, such as Indonesia, experienced supply and demand disruption. The PMI index reflecting the operational performance declined to 27.5 in April 2020 from 45 in January 2020. This study investigates the influence of IT capability on operational performance through internal and external integration. The sample consists of 111 manufacturing companies, and data analysis adopts the Partial Least Square (PLS) approach with SmartPLS. The results revealed that nine hypotheses proposed were supported. First, IT capability directly affects internal, external integration, and operational performance. Second, internal and external integration affects operational performance. Third, IT capability indirectly affects operational performance through internal and external integration. This research paves a way on how to recover the operational performance during the pandemic. These findings also contribute to enriching and extending the acceptance of previous research in the manufacturing industry context. https://www.journals.vu.lt/omee/article/view/24882information technology capabilityinternal integrationexternal integrationoperational performance |
| spellingShingle | Steven Hadikusuma Hotlan Siagian The Influence of IT Capability on Operational Performance Through Internal and External Integration: Evidence from Indonesia Organizations and Markets in Emerging Economies information technology capability internal integration external integration operational performance |
| title | The Influence of IT Capability on Operational Performance Through Internal and External Integration: Evidence from Indonesia |
| title_full | The Influence of IT Capability on Operational Performance Through Internal and External Integration: Evidence from Indonesia |
| title_fullStr | The Influence of IT Capability on Operational Performance Through Internal and External Integration: Evidence from Indonesia |
| title_full_unstemmed | The Influence of IT Capability on Operational Performance Through Internal and External Integration: Evidence from Indonesia |
| title_short | The Influence of IT Capability on Operational Performance Through Internal and External Integration: Evidence from Indonesia |
| title_sort | influence of it capability on operational performance through internal and external integration evidence from indonesia |
| topic | information technology capability internal integration external integration operational performance |
| url | https://www.journals.vu.lt/omee/article/view/24882 |
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