Bridging ERP Integration and Decision-Making Quality: The Critical Role of Information Quality

Abstract

In the modern digital era, Enterprise Resource Planning (ERP) systems have evolved from routine administrative tools into vital strategic assets. However, the direct technological implementation of ERP does not automatically guarantee superior organizational performance unless mediated by the optimal quality of information it produces.This study investigates the complex mechanisms through which ERP Integration influences Managerial Decision-Making Quality, explicitly examining Information Quality as a critical mediating variable. Utilizing a quantitative research design, data were gathered through a cross-sectional survey administered to 150 professionals actively utilizing ERP systems across diverse organizational roles (managers, supervisors, business analysts, and administrative staff). The structural equation modeling approach based on Partial Least Squares (PLS-SEM) was executed using SmartPLS 4 to evaluate both the measurement and structural models. The empirical findings confirm that ERP Integration exerts a strong positive and statistically significant effect on Information Quality ($\beta = 0.642, t = 8.127$) and a direct positive impact on Decision-Making Quality ($\beta = 0.325, t = 3.869$). Furthermore, Information Quality significantly influences Decision-Making Quality ($\beta = 0.518, t = 6.317$) and acts as a robust partial mediator in the relationship between ERP Integration and Decision-Making Quality ($\beta = 0.332, t = 4.099$). The study demonstrates that while comprehensive system integration accelerates managerial actions, information quality serves as the pivotal cognitive bridge that translates technological infrastructure into superior decision-making outcomes. These insights extend the DeLone and McLean Information Systems Success Model and offer actionable managerial directives for optimizing data governance in digitally integrated organizations.