A Systematic Literature Review

Impact of Purchasing Performance on Material Inventory and Sustainable Economic Level in Upstream Oil and Gas

DOI

10.2991/978-2-38476-090-9_24How to use a DOI?

Keywords

Determinant Variable; Sustainable Economics Level; Purchasing Performance; Material Inventory Performance; Systematic Literature Review

Abstract

This study is to reveal the effect of Purchasing Performance and Material Inventory Performance on the Level of Sustainable Economics in upstream oil and gas industries. We review the research based on the theory and previous empirical studies and use the Systematic Literature Review approach. The process found 28 articles and obtained them according to the criteria. Its results reveal that the effect of purchasing performance on material inventory performance has a significant relationship, and the effect of purchasing performance on company performance in the economic context has a significant relationship. However, research shows inconsistencies in the results, namely the impact of the performance of Material Inventory on Company Performance. The upstream oil and gas industry dynamics is causing Production Sharing Contract Contractors in the Plan of Development (POD) I (Initial POD) stage to face problems caused by a decline in their economic level. The impact of this issue led to further research into the cost aspect. This research addresses the issue within the context of Supply Chain Management (SCM), in accordance with previous researchers, which states that the performance of the SCM function has a significant impact on company performance, especially in terms of financial performance. Common practice is that the SCM role covers purchasing and inventory activities, which their roles support to operation and production activities. In the upstream petroleum industry, the roles of purchasing and material inventory are crucial for the company, since they deal with a huge amount of cost. In spite of this, SCM plays a crucial role, since it is the last gate in controlling the budget for upstream oil and gas operations. This research has difficulty finding articles that examine the same research variables in the upstream oil and gas industry. For this reason, this study uses a literature review approach. We anticipate the findings of this study to be a basis for further research, and decision-making and/or policy-making.

Copyright

© 2023 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Firera
AU  - M. Musadieq
AU  - Solimun
AU  - Benny Hutahayan
PY  - 2023
DA  - 2023/08/01
TI  - A Systematic Literature Review
BT  - Proceedings of the Fifth Annual International Conference on Business and Public Administration (AICoBPA 2022)
PB  - Atlantis Press
SP  - 282
EP  - 307
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-090-9_24
DO  - 10.2991/978-2-38476-090-9_24
ID  - 2023
ER  -