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Analysis of the Determinant Factors of Decision-Making Quality in ERP Applications
Abstract
Organizations increasingly deploy cloud-based Enterprise Resource Planning (ERP) systems to achieve real-time data integration and operational efficiency, yet prior research has emphasized their transactional functions and given limited attention to how ERP quality dimensions support managerial decision-making, with most studies examining only mediated relationships. The objective of this study is to analyse the direct and indirect influence of Information Quality, System Quality, and Service Quality on Decision-Making Quality, with User Satisfaction as a mediating variable, drawing on the DeLone and McLean Information System Success Model. Its contribution and novelty lie in modelling Decision-Making Quality as a distinct outcome construct and in testing the direct paths from the three quality dimensions to decision quality alongside the mediated ones, which prior ERP research has rarely examined. Data were collected through an online five-point Likert-scale questionnaire from ERP users in Batam, Indonesia, yielding 399 valid responses analysed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS. All seven hypotheses were supported. Information Quality was the strongest determinant, affecting User Satisfaction (β = 0.535) and Decision-Making Quality (β = 0.429), followed by System Quality (β = 0.254) and Service Quality (β = 0.102); User Satisfaction significantly influenced Decision-Making Quality (β = 0.200) and acted as a partial mediator. The model explained 69.6% of the variance in Decision-Making Quality (R² = 0.696) and 54.5% in User Satisfaction (R² = 0.545). Because the design is cross-sectional and self-reported, the findings are interpreted as statistical associations rather than causal effects. Practically, the results recommend that organizations prioritise the accuracy, timeliness, and relevance of ERP information to strengthen managerial decision-making.
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DOI: https://doi.org/10.47738/jads.v7i4.1537
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