Study on Effect of SCM Performance and ERP Diffusion through Supplier Development Maturity Model

Purpose - In case of automobile parts, there has been a lot of progress in the study on supplier development plans and SCM in industrial progress study as well as on the relationship between ERP and SCM. But supplier development program providers have researched on SCM performance in accordance with the interests of the supplier development program most, thus, buyers were knowledgeable about the earlier program performance. Therefore, the purpose of this study is to prove correlation factor, supplier factor, purchaser factor affecting SCM performance and ERP activating diffusion through the process of supplier development. Supplier development maturity formation model is considered important variables as mediators related to the procedure. Finally, the performance formation model of the supplier development maturity through supplier development factor would be presented as the outcome of this study. Research design, data, and methodology - Data gathering was as follows: questionnaires were delivered to 87 companies that have business connection with H Company. The empirical research to test our hypothesis was grounded on statistical analysis (adapting SPSS 19.0 & AMOS 19.0). The hypothesis is that the supplier development factor variables consist of correlation factor, supplier factor, purchaser factor, and have non-negative effects on the next variables: mediators such as supplier development maturity; and the supplier development maturity variables have a positive effect on the next variables: ERP activating diffusion, ERP activating diffusion has a non-negative effect on supply chain performance. We experimented the hypothesized model using path analysis with latent variables. Results - First, it was known that cooperation <H1>, reliability <H2>, comprehension on the purpose of SDP <H3>, adaptation of change <H4>, knowledge transfer program <H5>, have significant positive effects on supplier development maturity. Second, supplier development maturity has positive effects significantly on ERP activating diffusion <H6>. Finally, the causal relationships from ERP activating diffusion to SCM performance <H7> were significantly accepted. Its significance, as through the hypotheses, presented a structural model for the elaboration, suppliers develop maturity, and ultimately SCM performance that affect ERP leveraging spread beyond the concept of maturity of information system. Therefore, it was a mainstay of research on the existing ERP has they believed. Conclusion - First, with the fast changes in business circumstances, company should get the right information to implement SCM appropriately. For successful SCM, firms should understand the supplier development maturity formation and ERP activating diffusion. Second, supplier development factor has significant effects on supplier development maturity. Third, mediator such as supplier development maturity significantly affects ERP activating diffusion. Finally, ERP activating diffusion has significant impacts on SCM performance. This study makes a meaningful contribution to further appreciation on how supplier development maturity formation affects SCM performance. This study shows implications. First, there would not have been dealt with introducing the concept of supplier development maturity. Second, through empirical analysis and provider factors, the providers will develop the maturity that affect interactive factors between purchaser and supplier.