Critical Success Factors for SCM Centralization Amidst Digital Infrastructure Fragmentation: A Case Study of PT ADHI KARYA (Persero) Tbk

Abstract

The transition to centralized procurement is a strategic necessity for construction companies to achieve efficiency and transparency. However, this implementation is often hampered by fragmented application ecosystems (siloed systems). This study aims to identify internal Critical Success Factors (CSFs) as bridging variables in the transition to centralized Supply Chain Management (SCM) at PT ADHI KARYA (Persero) Tbk. Using an explanatory quantitative approach, data were collected from 95 operational and managerial respondents. The Exploratory Factor Analysis (EFA) method was used to extract factor dimensions, followed by Multiple Linear Regression analysis to measure variable determination. The study revealed three crucial internal latent factors, namely Data Consolidation Agility (X1), Transitional SOP Clarity (X2), and Top Management Intervention (X3). Simultaneously, these three factors have a determination of 65.4% towards implementation effectiveness (p < 0.001). The Data Consolidation Agility variable (X1) was identified as the most dominant determinant with a regression coefficient of 0.382, confirming that staff capability in bridging the manual to digital data gap is an absolute prerequisite for success amidst siloed systems. This finding contributes theoretically regarding the importance of strengthening internal pillars before pursuing system integration, as well as providing a managerial blueprint for PT ADHI KARYA (Persero) Tbk in achieving procurement efficiency.