Exploring Crucial Factors Affecting the Use of ERP and Their Effect on Employee Performance

This research identifies key factors that influence the use of Enterprise Resource Planning (ERP) and its influence on employee performance at PT Cakra Jawara Iveco Indonesia. This quantitative research uses Structural Equation Modeling Partial Least Squares (SEM PLS 4) as a data analysis tool to determine the relationship between variables. We propose 9 (nine) hypotheses to examine the relationships between variables, such as technical, organizational, and individual factors that influence ERP adoption. We also offer two. Our respondents are employees from a questionnaire used to gather data on employees’ perceptions of the variables. The discovery from this research is that there are internal and external variables to the adoption of information system models that have negligible influence on the adoption and employees’ results in self-efficacy at PT Cakra Jawara Iveco Indonesia. Thus, our discovery will provide awareness of what is most necessary for ERP adoption and how it will impact employees. Our findings will be a reference for planning and improvement of strategies concerning the socialization, selection, and implementation of ERP applications, and effective performance of our human resources. Furthermore, we also have two untested hypotheses, and this will provide an opportunity for further inquiry to explore other aspects that might influence ERP adoption and employees’ reusability at PT Cakra Jawara Iveco Indonesia.