Enterprise Resource Planning Systems and Information Capabilities: Increasing Supply Chain Performance in Thailand’s Frozen Food Industry

Abstract

The objective of this study was to examine the mediating role of information capabilities on the effect of the Enterprise Resource Planning (ERP) system on supply chain performance. This study drew insights from the literature asserting that the information capabilities in an ERP system have a direct impact on supply chain performance. The current study collected data from 234 executives, middle managers, operational managers, and operators working for ten groups belonging to the frozen food industry in Thailand through survey questionnaires. The hypotheses were tested and analyzed using Structural Equation Modeling (SEM). The results of the analysis reveal that the information capabilities in an ERP system have an impact on supply chain performance. The results imply that when the information capabilities are identified and used in each department of a company, it allows all departments to extract information capabilities from the ERP system, allowing it to serve as a critical database to support decision making, planning, and effective operations throughout the supply chain.