Information Technology Capability towards Company Performance through Cross Functional Integration and Supply Chain Agility

Abstract

Sudden changes are currently caused by Covid-19, which has an impact on the global economy. The manufacturing sector has experienced changes in material supply and customer demand. Global disruption has an impact on the continuity of companies to be able to survive and change rapidly. Determining the research object in paper manufacturing companies in East Java with the respondents having a minimum work experience of 2 years totalling 66 companies. Data processing using partial least squares to answer the entire research hypothesis. The results showed that information technology capability directly impacted increasing cross functional integration and supply chain agility. Information technology does not have a direct impact on improving company performance. The company's ability to build information technology to make cross-functional integration can increase supply chain agility but does not directly impact company performance. Supply chain agility by adjusting production volume and fast-changing products affects the ability to respond quickly to market demand changes and fast confirmation of customer requests. The theoretical contribution of research to the importance of supply chain agility as a perfect mediation between information technology capability and company performance.