Academy of Strategic Management Journal (Print ISSN: 1544-1458; Online ISSN: 1939-6104)


The Impact of Project Management and Implementing Enterprise Resource Planning on Decision-Making Effectiveness: The Case of Indonesian State-Owned Enterprises

Author(s): Uswatun Khasanah, Sri Mulyani, Bahrullah Akbar, Muhammad Dahlan

 Although Enterprise Resource Planning (ERP) systems are the most popular rapidly increasing breakthrough systems used by business actors, this field study on state-owned companies is still very limited to single cases. This study investigates the relationship between project management, ERP implementation, and effective decision-making in Indonesia's state-owned enterprises. This study also explores the moderating role of top management support in the project management - ERP implementation relationship and the mediating role of ERP implementation in the project management - effective decision-making relationship. A total of 88 companies (76 percent of Indonesian state-owned enterprises) participated in this study. Data analyzes for hypothesis testing were conducted using Hayes' PROCESS macro-based hierarchical regression. Results revealed that project management has significant and positive effects on ERP implementation, and this relationship is moderated by top management support. Moreover, the indirect effect of project management on effective decision-making via ERP implementation is also supported. This study provides different insights to point out the importance of top management support as boundary conditions in the relationship between project management to ERP implementation.

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