A Mediating Effect on ERP KM Model for the Performance of Oil and Gas Sector in Klang Valley: A Preliminary Study

Abstract

The development of information technology and the internet has created a borderless business environment and increased market competition. Driving globalization trends, information technology facilitates the organization in the aspect of the decision-making process, increasing productivity with cost-effective and fast delivery to meet customer needs. This article presents a conceptual study of ERP KM model and proposes a direction for further investigation. In this study, a literature review on Incentive as mediating effects in ERP KM model against operational and financial performance was analyzed. In order to achieve this target, to maintain the competitive advantage, oil and gas industry players implement Knowledge Management (KM) on Enterprise Resource Planning (ERP) systems. However, most studies focus only on the implementation and improvement of the ERP process flows as compared to KM concepts. This paper covers literary studies related to KM and ERP as well as merging these two concepts to form the appropriate ERP KM model for the oil and gas sector in Klang Valley, Malaysia. The new model of ERP KM Rizam 2019 introduced in this study will be tested for its effectiveness in the oil and gas sector especially in the Klang Valley. It was found that the mediating effect ‘Incentives’ in addition to KM is expected to have a positive relationship on operational and financial performance compared to the direct influences of ERP usage on performance.