Agustiana, Rida Elfreda
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Work Method and SLA Performance in Procurement and Contract Operations: Evidence from Indonesia’s Upstream Oil and Gas Industry Agustiana, Rida Elfreda; Utama, Akbar Adhi
Inkubis : Jurnal Ekonomi dan Bisnis Vol. 8 No. 2 (2026): INKUBIS Jurnal Ekonomi Dan Bisnis
Publisher : Politeknik Siber Cerdika Internasional

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.59261/inkubis.v8i2.370

Abstract

Background:  Following organizational restructuring, Procurement and Contract Management functions across Subholding entities face operational challenges caused by variations in work method implementation, personnel allocation, and operational processes, resulted differences in SLA achievement among entities. These variations indicate potential operational inefficiencies related to work volume distribution, process coordination, and other process-related factors. Objective:  This research explores how differences in working methods relate to SLA achievement. Furthermore, it examines process-related factors contribute to SLA, and proposes improvement strategy to support sustainable SLA performance. Methods:  Using mixed-method approach, the study combines quantitative and qualitative analysis. Operational data from six Subholding entities for 2024 were used for descriptive quantitative analysis and Statistical Process Control. Qualitative analysis was conducted through interviews with Management, Focus Group Discussions with representatives from functions, qualitative coding, and Current Reality Tree. Results:  The results reveal significant variations in SLA achievement across entities. Split work methods, where procurement and contract management responsibilities are separated, demonstrated approximately 45% faster SLA completion than end-to-end arrangements, indicating the benefits of role specialization and stronger process control.  Furthermore, this research identifies four process-related factors that contribute to SLA performance, that is Work Method Implementation, Procurement – CM Handover, System Role Segregation, and Capability Development. The study recommends strengthening alignment of split work method implementation and involving contract management personnel earlier. Conclusion:  The findings indicate that split work methods between Procurement and Contract Management functions improve operational efficiency through role specialization. This research contributes to operations management literature and provides practical guidance for improving operational performance.