Developing an Operational Performance Model for The Aircraft Maintenance, Repair, and Overhaul (MRO) Industry in Indonesia: The Mediating Role of Inventory Control Performance
DOI:
https://doi.org/10.38035/sjtl.v4i2.1105Keywords:
ERP Flexibility, Inventory Management, Digital Transformation Integration, Inventory Control Performance, Operational Performance, MROAbstract
Aviation companies which are involved in Maintenance, Repair, and Overhaul sector are facing challenges in terms of attaining high performance due to inventory complexity, material availability, and the emergence of a new need for having extended digital capabilities. This paper attempts to propose an operational performance model by investigating the inventory control performance’s influence mechanism on the relationship between ERP Flexibility, Inventory Management, and Digital Transformation Integration on the one hand and Operational Performance on the other. The paper builds upon the framework advanced by Saputra et al. (2025), who examined the role of digital transformation integration and inventory management in the aircraft MRO industry. The current study extended the framework by including Inventory Control Performance as the mediator. The data were collected from 196 respondents working in an aviation company involved in MRO activities in Indonesia, and they were analyzed using Partial Least Squares Structural Equation Modeling. The analysis revealed that ERP Flexibility, Inventory Management, and Digital Transformation Integration positively and significantly predicted Inventory Control Performance (β = 0.504, 0.550, and 0.485; p < 0.001). Inventory Control Performance, in turn, significantly and positively predicted Operational Performance (β = 0.326; p < 0.001). The mediation was also found significant. The model can explain 82.2% of the variance in Inventory Control Performance and 83.3% of the variance in Operational Performance; thus, it can be used to manage inventory control capabilities in aviation companies involved in MRO activities.
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