Impact of Supply Chain Governance and ERP Application on Creating Competitive Advantage

Abstract

Supply chain governance (SCG) and Enterprise Resource Planning (ERP) applications play a crucial role in creating a competitive advantage for businesses. Effective SCG involves optimizing the flow of goods, services, and information between different entities in the supply chain, while ERP applications provide a centralized platform for managing operations and accessing critical information. This study aims to examine the impact of SCG and ERP applications on creating a competitive advantage. Drawing on theories such as the Resource-Based View (RBV), Dynamic Capabilities theory, Transaction Cost Economics (TCE), Institutional Theory, and Absorptive Capacity Theory, the study explores how these technologies contribute to cost reduction, improved customer service, enhanced coordination, operational efficiency, and the ability to adapt to changing market conditions. The findings highlight the importance of leveraging SCG and ERP applications effectively to gain a competitive edge, improve overall performance, and achieve sustained growth and profitability. This research provides valuable insights for organizations seeking to optimize their supply chain operations and maximize the benefits of ERP applications in the pursuit of competitive advantage.

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