The role of information management systems and electronic-HRM on company performance: A study on Indonesian manufacturing

This study aims to analyze the relationship between e-HRM variables and company performance and the relationship between Management Information System (MIS) variables and company performance. This study is a quantitative study with an explanatory method that aims to explain the relationship between symptoms. The data used in this study are primary data through an online questionnaire method distributed using social media. The respondents who became the sample were 389 manufacturing managers determined through simple random sampling. Data processing in this study uses the Partial Least Square (PLS) method with the help of SmartPLS software. The stages of data processing include evaluating the measurement model (outer model) and the structural model (inner model). Evaluation of the measurement model consists of validity testing and reliability testing. Validity testing can be seen from the standardized loading factor value. An indicator is valid when the loading factor value is greater than or equal to 0.7. The reliability test is seen from Cronbach's Alpha and Average Variance Extracted (AVE) values. A construct is declared reliable when Cronbach's Alpha value is greater than or equal to 0.7, and the minimum AVE value is 0.5. The next reliability test is to evaluate discriminant validity. Discriminant validity is evaluated through cross-loading and comparing the AVE root value with the correlation between constructs. If the correlation between the indicator and its construct is higher than the correlation with other block constructs, it indicates that the construct predicts the size of its block better than other blocks. After evaluating the measurement model, an evaluation of the structural model obtained is carried out based on the last model that has been declared valid and reliable. Hypothesis testing of the t-statistic and p-value values generated from calculations using SmartPLS. Path coefficients that have a t-statistic value ≥ 1.96 or a p-value ≤ 0.05 are declared significant. The results of this study show that e-HRM has a positive and significant relationship with Performance, and the Management Information System (MIS) has a positive and significant relationship with Performance.