ERP Integration Quality, User Competence, and Information Quality as Determinants of Production Efficiency: The Mediating Role of Operational Process Improvement

Abstract

This study examines the effects of ERP System Integration Quality, User Competence, and Information Quality on Production Efficiency, both directly and indirectly through Operational Process Improvement as a mediating variable at PT XYZ. A quantitative approach was employed using Structural Equation Modeling–Partial Least Squares (SEM-PLS) with SmartPLS 4. Data were collected through a Likert-scale questionnaire from 108 employees selected using purposive sampling. The results indicate that ERP System Integration Quality, User Competence, and Information Quality have positive and significant effects on both Production Efficiency and Operational Process Improvement. Operational Process Improvement also has a positive and significant effect on Production Efficiency. Furthermore, Operational Process Improvement significantly mediates the relationships between ERP System Integration Quality, User Competence, Information Quality, and Production Efficiency. These findings highlight the importance of integrated ERP systems, competent users, and high-quality information in supporting operational improvements and production efficiency.