Increasing Operational Performance through ERP Performance in Oil Palm Plantation Industry Indonesia

Abstract

Digital transformation is needed in palm oil companies in Indonesia to achieve maximum operational performance. Enterprise Resource Planning (ERP) can help improve organizational efficiency and productivity through organizational trust, transformational leadership, and mobility strategies, playing an effective role in improving operational performance. This study aims to collect data through a survey of 79 oil palm plantation companies that use ERP to improve their operational performance in Indonesia. Partial Least Square Structural Equation Model (SEM–PLS) is an analytical method that can be applied through the SmartPLS 3.0 software used in this study. This study found that ERP implementation, organizational trust, transformational leadership and mobility strategies have a major role in influencing operational performance. Thus, ERP performance can be enhanced by organizational trust, transformational leadership, and mobility strategies. Operational performance can be achieved through continuous and reliable improvement.

Keywords: Performance, ERP, Mobility, Trust, Transformational Leadership, Palm Oil