Jordanian Commercial Banks Research Articles

Impact of digital transformation on the organization’s financial performance: A case of Jordanian commercial banks listed on the Amman Stock Exchange

Digital transformation refers to strategic activities undertaken by organizations to improve and simplify their process and even alter their business models with abreast to enhance firm performance. Thus, the aim of this study was to analyze the impact of digital transformation on organizational performance among the Jordanian commercial banks listed on the Amman Stock Exchange. The descriptive research design was used in this quantitative study. Primary data were collected to achieve the objectives of the study. The target population was employees (managers and non-managers) of Jordanian commercial banks listed on the Amman Stock Exchange. The sample size was selected using Krejcie and Morgan rule; after data cleaning procedures, the final sample of 282 respondents was used for final analysis. The study employed regression analysis to arrive at the results. The results confirm that digital transformation has a significant positive effect on customer experience and IT innovation. These results were significant at a 1% level. The results also confirm that digital transformation has a significant positive effect on firm performance, with a significance level of 1%. Moreover, the significant positive impact of customer experience and IT innovation was confirmed. Therefore, the significant positive impact of digital transformation on firm performance was found viz-a-viz direct as well as indirect route.

The influence of financial technology on profitability in Jordanian commercial banks

The aim of this study is to identify the influence of Financial Technology (FinTech) on profitability in Jordanian commercial banks. The convenience sample was surveyed using a descriptive cross-sectional approach. Questionnaires were used to collect the data. The study population consists of commercial banks. The tool was sent to employees of all Jordanian commercial banks through email, Facebook and Twitter in order to meet the researchers' target sample size of at least 381 participants. The data was analyzed using the Statistical Package for Social Sciences (SPSS) version 24. The results showed an impact of financial technology (financing, money transfers and lending) on banks' profitability. The results of this study demonstrate that the adoption of FinTech solutions by banks has a significant impact on their profitability and position. Financing, money transfer and lending are crucial in determining a bank's profitability and overall success. Therefore, this study contributed to the growth of a new model that connects financial technology through financing, money transfers and lending to profitability and it added many topics related to financial accounting technology for increasing profitability in Jordanian commercial banks.

The impact of the corporate risk management model on the quality of financial reports in Jordanian commercial banks

The objective of this study is to empirically elucidate the influence of the corporate risk management model on the quality financial reports within the context of Jordanian commercial banks, with a specific focus on two critical dimensions: relevance and faithful representation. According to signal theory, each company tries to reduce information asymmetry by providing high-quality of financial reports that have the ability to demonstrate their qualities, depending on that concept. The predominant trend in contemporary practice is the utilization of risk management as a tool to elevate the quality of financial reports. This, in turn, assists in curtailing the manipulation of financial reports, culminating in the issuance of reports characterized by credibility and transparency. This, in turn, reflected on all different users of financial reports in the decision-making process. To accomplish the study's objectives, a descriptive-deductive (analytical) research approach was adopted. The research population encompassed a total of thirteen commercial banks operating at Jordan. Data were collected through a structured questionnaire administered to a randomly selected sample of 234 employees from the financial and supervisory departments of these banks. The study's results strongly suggest that the risk management model has a big effect on the quality of financial reports in Jordanian banks. This model includes things like setting goals, event identification, risk assessment, risk response, supervisory activities, and the evaluation of the financial reporting system.

The Role of Organizational Improvisation in Crisis Management Methods: The Moderating Role of Strategic Vigilance

Objectives: This study aimed to identifying the role of organizational Improvisation in crisis management methods the moderating role of strategic vigilance. Methods: In order to achieve the study objective, the descriptive analytical method was used, and applied it to a simple random sample consisting of (171) managers, at Jordanian commercial banks. Results: The results revealed that there is a significant effect at the significance level (Alpha less than or equal 0.05) of organizational improvisation with its dimensions in crisis management, it was also found that strategic vigilance influencing the relationship between organizational improvisation and crisis management methods. Conclusions: Based on these results, the study concludes that Jordanian commercial banks practiced organizational improvisation at a medium level due to their dependence on legal regulations and institutional frameworks governing their work, and practices strategic vigilance at a higher level, which enhances their ability to analyze crisis signals , re-distribute , and re-organizing their resources to use them in a timely manner to reduce the crisis effect at the lowest levels, and they practice organizational improvisation in some cases they did not plan for before.

Towards an understanding of business intelligence and analytics usage: Evidence from the banking industry

This study investigates the factors influencing the usage of Business Intelligence and Analytics (BIA) in the banking industry sector. Furthermore, it explores the moderating influence of employees' work experience on BIA usage within Jordanian commercial banks. A conceptual model was developed based on the TOE framework to assess the influence of technological, organizational, and environmental factors on BIA utilization in commercial banks. For this reason, this study followed an empirical analysis and developed a questionnaire to collect data from employees in Jordanian commercial banks. A total of 277 responses were analyzed using the partial least squares structural equation modeling (PLS-SEM) to test the hypotheses of this study. The findings reveal a significant positive influence of the TOE factors on BIA usage, which indicates that they play a crucial role in shaping BIA usage in commercial banks. Regarding employees’ work experience, it has been found that it moderates the relationships between technological and organizational factors and the usage of BIA. However, it did not influence the relationships between the environmental factors and BIA usage in commercial banks. These findings highlight the need for banking institutions in Jordan to adopt a holistic approach that aligns advanced technological solutions, a supportive organizational culture, and adaptability to the external environment to optimize their utilization of BIA. This study provides valuable insights for banking institutions seeking to enhance their BIA utilization and make data-driven decisions in the dynamic banking industry.

The mediating role of technological vigilance between IT infrastructure and AIS efficiency

This study aimed to examine the mediating role of technological vigilance within commercial banks in Jordan in supporting the relationship between information technology (IT) infrastructure (hardware, software, network, security, maintenance, information quality, and interoperability) and Accounting Information Systems (AIS) efficiency. AMOS and Statistical Package of Social Science (SPSS) were used in order to screen and analyze the data collected from 161 financial and accounting managers within commercial banks in Jordan. The results indicated that technological vigilance mediates the relationship between IT infrastructure and AIS efficiency; it is based on the idea that the use of IT infrastructure, such as networks, hardware, and software to support business processes has a direct impact on the efficiency of AIS. Accordingly, this study recommends focusing on the role of IT infrastructure and the mediating role of technological vigilance in achieving AIS efficiency in Jordanian commercial banks. The originality of the study lies in its ability to address the role of IT infrastructure in increasing AIS efficiency, as well as its focus on the mediating role that technological vigilance. The study also has a novel contribution to the field by exploring the interconnectedness between technology, operational efficiency, and watchfulness. Through an in-depth analysis of empirical case studies, a deeper understanding of the interplay between these three variables was presented.

The impact of corporate governance on the financial performance of banks

The paper aimed to examine the impact of corporate governance on the financial performance of commercial banks in Jordan. The variables used to measure corporate governance were the board of directors' size, independent members of the board of directors, and the number of audit committee members, while those used to measure financial performance were return on investment, return on equity and earnings per share. The study used a quantitative approach based on the data of 12 commercial banks in Jordan during the period 2005-2022. The panel data were analyzed using the EViews software based on the ordinary least squares time series technique. The paper found the effect of all corporate governance variables on both return on investment and return on equity. However, it indicated that the board of directors' size and the independent members of the board of directors had an impact on earnings per share. This study highlighted corporate governance variables in one of the significant sectors of developing economies. Moreover, it recommended the need to review the principles used in selecting members of the audit committee for commercial banks in Jordan, due to their importance in developing long-term financial performance.

How cybersecurity influences fraud prevention: An empirical study on Jordanian commercial banks

In this digital age, fraudulent practices are among the most challenging that organizations must be aware of due to the increasing use of online transactions. This also applies to the banking sector whose business has become more complex with the recent developments in information and communication technology, which has changed the nature of bank fraud requiring advanced prevention measures. From this perspective, this paper aims to determine how cybersecurity affects fraud prevention for Jordanian commercial banks. A five-dimensional NIST cybersecurity framework was used. The research data was collected from 173 information technology managers in commercial banks listed on the Amman Stock Exchange. Structural equation modeling (SEM) was applied to investigate research hypotheses. The results of the research demonstrated the significant impact of cybersecurity in fraud prevention, especially detect function which had the largest impact among the dimensions of cybersecurity. Therefore, a set of recommendations were formulated for policymakers in Jordanian commercial banks, the most important of which is the adoption of multi-factor authentication (MFA) approaches for customer accounts, employee access, and biometric systems that add an additional layer of protection and make access to sensitive information to unauthorized individuals more difficult.

Individual and Technological Factors Affecting the Adoption of AI-Powered Remote Auditing in the Jordanian Banking Sector

IntroductionArtificial intelligence technologies have recently contributed to the field of remote auditing and have led to significant improvements in the efficiency and outcomes of the audit process. However, this professional technological integration remains unexplored in the Jordanian banking sector. Accordingly, understanding the mechanism of integration between these factors is essential to keep pace with the evolving work environment. This study aims to examine how these factors affect the adoption of remote auditing supported by artificial intelligence in Jordanian banks. MethodsA quantitative approach consistent with a cross-sectional design was used to collect primary research data. A structured questionnaire was distributed to 158 decision-makers in various commercial banks in Jordan. The questionnaire measured individual factors (e.g., skill level of users and Attitude towards technology) and technological factors (e.g., technology readiness, data security and privacy, and integration capabilities). Structural equation modeling (SEM) was used to test the relationships between these factors and intention to adopt AI-powered remote auditing using SMART PLS. ResultsThe results depicted that all factors, including individual and technological factors, significantly influenced the adoption of AI-powered remote auditing. Attitude towards technology and integration capabilities were the strongest predictors. Additionally, technology readiness, data security and privacy, and skill level of users had moderate but significant, effects on adoption intention. ConclusionThe findings emphasize that both individual perceptions and technological robustness are crucial for adopting AI-powered remote auditing in Jordanian banks. Improving system reliability and showcasing the benefits of AI tools can significantly boost adoption rates

The moderating role of internal control system on the relationship between service quality of accounting information system and customer satisfaction: a study of some selected customers from commercial banks in Jordan

The purpose of this empirical study is to determine how Jordan's internal control system affects the efficiency of accounting information systems (AIS) services and client satisfaction. The study's goal is to shed light on how important a robust internal control system is for increasing customer satisfaction with AIS services. A quantitative research methodology is used to collect data from a survey of 265 representative customers of Jordanian enterprises (Commercial BANKS). Data is analyzed using second generation analysis technic (SmartPLS) software. In the context of AIS, the findings emphasize the significance of the internal control system in bolstering the link between service quality and customer satisfaction. The research advances our understanding of AIS and has significant ramifications for companies seeking to improve customer satisfaction and service quality. The researcher also offered suggestions for further research.

The Impact of Organizational Ambidexterity on Competitive Advantage at Jordanian Commercial Banks

The Impact of Organizational Ambidexterity on Competitive Advantage at Jordanian Commercial Banks

Impact of Digital Marketing Strategies on the Entrepreneurial Orientations of Jordan's Commercial Banks

Technology finance has an increasingly significant impact on the state of the financial industry around the world, including Jordan. Digital marketing has the potential to improve the efficiency, creativity and value of financial services, which can contribute to the resilience and prosperity of customers. This research aims to determine digital marketing strategies (DMSs) and their impact on the entrepreneurial orientation (EO) of Jordan's commercial banks. To realize the dimensions of the digital marketing strategy. The study answers the main question addressed by this research, including whether there was a correlation and impact of the digital marketing strategy on the entrepreneurial orientation of commercial banks. The method uses a basic type with a quantitative, nonexperimental approach. Essential information obtained through the questionnaire was organized for this purpose and distributed to a sample of 137 staff at various levels. Descriptive and analytical statistical methods have been adopted, including computational media and standard deviations, and the correlations between variables and tests (t) have been used. All the variables have α (0.823 ~ 0.989); to ascertain the stability of the search tool, the value (F) achieved (241.359). The results reveal various perspectives on key business aspects and show that the correlation factor (R=.926) indicates that digital marketing affects entrepreneurial orientation. The results of this study explain the structural impact of the digital marketing strategy (targeting strategy, attack strategy, and proactive strategy) on the entrepreneurial orientation (proactive risk tolerance and creative and innovation) of Jordanian commercial banks. Thus, these tools are potentially effective and should be adopted by Jordanian commercial banks to improve existing strategies through investments in technology, data analysis and staff training.

The Impact of Technology and Digital Applications on Organizational Performance in Jordanian Commercial Banks

The Impact of Technology and Digital Applications on Organizational Performance in Jordanian Commercial Banks

The role of the core requirements of Basel 3 Committee's decisions in improving internal audit quality under corporate governance in Jordanian commercial banks

The role of the core requirements of Basel 3 Committee's decisions in improving internal audit quality under corporate governance in Jordanian commercial banks

The impact of cloud accounting on reducing creative accounting practices in commercial banks: The moderating role of internal audit

This study attempts to study the impact of the moderating role of internal audit between cloud accounting and limiting creative accounting practices in commercial banks. The study utilized a descriptive and analytical approach. The target population of this research consists of all employees of the 13 Jordanian commercial banks listed on the Amman Stock Exchange, while the number of employees in commercial banks is (22,407) employees. This led to the use of a simple random sample of (400) employees. The results found that there is a positive effect of the moderating role of internal audit on the impact of cloud accounting on reducing creative accounting practices in commercial banks. The study suggests that future studies should give recommendations and proposals to improve and develop cloud accounting and internal auditing in commercial banks, increase transparency, monitoring and compliance in accounting and financial operations, and reduce the risks associated with cloud accounting and creative accounting practices.

The impact of banking financial leverage on firm’s performance: The moderating role of artificial intelligence

Exploring the intricate and multifaceted dynamics between financial leverage (LEV), artificial intelligence (AI), and firm performance, this research paper delves into the complex relationship highlighted in the existing literature. To enhance comprehension, the study seeks to investigate the moderating influence of AI on this relationship, aiming to provide insights into how businesses can strategically optimize the interplay of leverage and AI to attain optimal performance levels. The study community consisted of all 13 Jordanian commercial banks listed on the Amman Stock Exchange (ASE) for the period from 2012 to 2021. The study sample consisted of 130 observations collected from the annual reports of the study sample. The method adopted in the study involved conducting a regression analysis to test the hypotheses and determine the strength and direction of the relationship between the variables. The main finding of the study was that there is a negative relationship between financial leverage and firm performance, as indicated by a negative coefficient for return on assets (ROA). Additionally, the study found that the use of AI has a positive moderating effect on the relationship between financial leverage and firm performance, as indicated by a positive coefficient for return on equity (ROE). The generalizability of the findings to other demographics or situations may be constrained by the study sample’s narrow focus, which may not necessarily be indicative of other types of businesses or industries.

Factors Affecting E-Banking Service in Jordanian Commercial Banks

This study aimed to determine the variables influencing electronic banking services in Jordanian commercial banks. The study sample consisted of 13 commercial banks, according to the study’s variables. The descriptive and analytical approach and other statistical techniques were employed, including the fixed effect test and descriptive statistics. No statistically significant impact at the level was found, according to the findings of significance (p < 0.05) for total assets on electronic banking services, and there is no statistically significant impact at the level of significance (p < 0.05) for total capital and provisions, total credit facilities, and total deposits on commercial banks in Jordan that offer electronic banking. The study recommended that the banking sector focuses on all the main elements related to electronic banking services by comparing traditional banking services with electronic banking services, knowing the factors affecting that, and paying attention to them to raise the profitability level.

The Effect of Entrepreneurial Orientation in Strategic Success at Jordanian Commercial Banks

The Effect of Entrepreneurial Orientation in Strategic Success at Jordanian Commercial Banks

Business Process Re-Engineering and its Impact on Business Intelligence at Jordanian Commercial Banks

Business Process Re-Engineering and its Impact on Business Intelligence at Jordanian Commercial Banks

The Impact of Cloud Computing on Enhancing the Performance of Financial Banking Programs in Jordanian Commercial Banks

The Impact of Cloud Computing on Enhancing the Performance of Financial Banking Programs in Jordanian Commercial Banks