Jordanian Companies Research Articles

Artificial intelligence applications for enhancing organizational excellence: Modifying role of supply chain agility

The study’s goal was to demonstrate the modifying role of supply chain agility in the impact of artificial intelligence applications on organizational excellence in Jordanian e-commerce companies. The analytical and descriptive approach was adopted. The study population consisted of 160 companies operating in the e-commerce sector in Jordan. The sample comprised 400 respondents working in senior and middle management positions. The questionnaire was utilized to collect the data. The results showed an impact of artificial intelligence applications in all dimensions (expert systems and neural networks) on the organizational excellence of e-commerce companies in Jordan. The value of the adjusted coefficient of determination (Adj. R2) was .265%. Based on the model’s F value (4.1190) and its level of significance (P; 0.00), the impact of these techniques on organizational excellence is statistically significant. Additionally, the results displayed an impact of supply chain agility on improving the impact of artificial intelligence applications on organizational excellence. The value of the degree of influence ß after introducing the modified variable supply chain agility and the value of R Square increased by .11 at the significance level (Sig). = 0.000. This study recommended training workers to stay up to date with developments in artificial intelligence, expert systems, and neural networks in their operations, control of searching for this evidence within databases, and knowledge representation.

The Practice of Enterprise Risk Management and Sustainable Performance in Jordan

The primary objective of any organization is to minimize risks and losses while optimizing values, revenues and returns. Therefore, risk management, which is often referred to as risk identification, likelihood of occurrence, and impact on the business, is essential. Recent corporate catastrophes have brought to light how inadequately corporations handle risks. In reaction to these challenges, organizations have shifted from separate and personalized procedures to a more comprehensive and integrated enterprise risk management (ERM) perspective in their risk management strategies. To address these new global sustainable challenges which include hunger, poverty, high unemployment, climate change, and related issues, businesses should place a strong priority on environmental preservation and social responsibility. Jordan is one of the countries dealing with several issues related to sustainability. The sustainable performance of Jordanian firms deserves further attention. Managers in Jordanian industrial businesses must keep a close eye on how the company's environmental environment is being improved to reduce air pollution, the usage of hazardous materials, and other difficulties. Therefore, companies in Jordan must adopt strategies that will allow them to face this issue to improve their social, environmental, and economic performance. Jordan's manufacturing and service industries should be at the forefront of a comprehensive approach to risk management and board monitoring, given the growing concerns regarding the environment, society, and economy. Since ERM is a relatively new concept, its implementation in Jordanian industrial and service companies is still in its early stages. Moreover, there is a lack of comprehensive research regarding the ERM in Jordan.

Does corporate governance moderate the impact of earnings management on capital structure of the listed corporations on Palestine and Amman Bourses

The purpose of this research is to investigate the moderating role of corporate governance on the relationship between earnings management and debt level in capital structure. The paper used a hypothesis-testing research approach to gather data from the annual reports of 13 industrial companies listed on Palestine Exchange and 25 Jordanian companies listed on Amman Stock Exchange from 2013 to 2020. Descriptive and inferential statistics were employed, along with correlation analysis to evaluate linear relationships between variables. The fixed and random effect regressions were utilized to develop the research model. In the case of Palestinian manufacturing firms, the results revealed that Earnings Management (EM) had a significant negative impact on debt level. According to the moderating role of Corporate Governance (CG), larger boards and the existence of female members on the board of directors causes an increase in the high-leverage impact of EM, whereas CEO duality mitigates the high-leverage impact. However, in the case of Jordanian manufacturing firms, EM showed an insignificant impact on debt level. Regarding the moderating role of CG, it was proved that the presence of female members on the board of directors increased the firm’s reliance on debt financing as a result of EM practices, while institutional investors mitigate the effect of EM on debt financing, leading to a decrease in reliance on debt. The findings of this research are suitable for the regulators while formulating policies on the Corporate Governance and the Impact of Earnings Management on Capital Structure. These findings have guided the policymakers that they should enhance their focus on Palestine and Jordan companies to test Corporate Governance Moderates the Impact of Earnings Management on Capital Structure. This study is also helpful for the new researcher while investigating this area in the future.

The Impact of Digital Entrepreneurship on Digital Leadership to Improve the Project Management of Solar Projects

The current study aimed to research the impact of digital entrepreneurship on digital leadership to improve the project management of solar projects, The study relied on the descriptive approach. The study population consisted of all project managers in solar energy companies in Jordan, pproximately 2,000 project managers in solar companies in Jordan. the study sample suggestion based on Laplace's equation is to randomly select 385 project managers from the study population. The results of the study shows that the mean values of the study sample's estimations were high for the independent variable (digital entrepreneurship), the overall mean was (4.08) with a high estimation score, also the mean values of the study sample's estimations were moderate for the dependent variable (digital leadership), and the overall mean was (3.05) with a moderate estimation score, the mean values of the study sample's estimations were moderate for the (project management for solar projects) variable, the overall mean was (3.60). Based on the findings of this study, the following recommends to conduct needs assessments to identify required hardware, software, and network upgrades, allocate sufficient budget for IT infrastructure development, and ensure reliable internet connectivity to support digital solutions.

Attitudes of auditors about employing artificial intelligence in the auditing process: Jordanian auditing companies are an example

Objective: This research aims to investigate the degree of attitudes of Auditors toward employing Artificial intelligence in auditing process. Also, it aims to investigate if there any statistically differences in a degree of auditor's attitude toward employing artificial intelligence in auditing process distribute to the gender and experience. Methodology: The study used a descriptive analytical approach. The data were collected from (94) auditors from four accounting company in Amman ، Jordan who were chosen randomly. using a questionnaire developed for this purpose. Findings: The findings of the study shows that the degree of attitudes of auditors in accounting companies in Jordan toward employing artificial intelligence in auditing process is high with mean (3.69) and Std. Dev (0.91)، Also ، the finding of the study shows that there no statistically differences at the level (a= 0.05) in degree of attitude of Jordanian auditors toward distributes to gender and experience year.

Why do people use a mobile wallet? The case of fintech companies in Jordan

Understanding consumer intentions regarding mobile wallet (m-wallet) adoption is paramount in the mobile commerce landscape, particularly in cash-centric economies like Jordan. Despite efforts to shift toward digital payments, cash transactions remain prevalent, highlighting the need to explore m-wallet service adoption dynamics in Jordan.This study aims to identify the factors influencing Jordanian consumers’ adoption of m-wallet services, focusing on the motivations and barriers. Utilizing the Unified Theory of Acceptance and Use of Technology (UTAUT2) as a theoretical foundation, the research integrates various models to assess technology acceptance. A questionnaire distributed among m-wallet users from fintech companies in Jordan garnered 421 responses, analyzed using the Smart PLS 3 software.The findings indicate a positive impact of all variables on the propensity for m-wallet adoption in Jordan. Notably, perceived usefulness, ease of use, and facilitating conditions significantly influenced user decisions, evidenced by R-square values of 0.78%, 0.758% and 0.684%, respectively. Meanwhile, perceived value, security, privacy, and social influence had a moderate effect. The attractiveness of alternatives and attitudes towards m-wallet usage showed lesser impact, with R-square values at 26.7% and 22.8%, respectively, illustrating varied influences on adoption rates in determining consumer adoption of m-wallet services in Jordan.This paper enhances research on mobile commerce in developing economies, focusing on Jordan. It explores the adoption of m-wallet services by fintech users, presenting a detailed model. The study provides valuable insights for advancing digital payment systems in this region.

Navigating Ethics: Insights into External Auditor Compliance from Financial Managers and Internal Auditors in Jordanian Companies

This study aims to assess to what extent Jordanian external auditors comply with the Code of Ethics for Professional Accountants, as perceived by financial managers and internal auditors. The hypotheses are tested using one sample and an independent sample t-test for a sample of 53 industrial public shareholding companies listed on the Amman stock exchange during 2020–2023. The study utilized the survey instruments to collect the necessary data from 200 participants. The findings show that the external auditor complies with the code of professional ethics at a high to moderate level per the Relative Important Index from the viewpoint of both financial managers and internal auditors. Moreover, the outcomes also show there are no significant variances between their beliefs regarding the adherence of external auditors to the code of ethics. The study consequences indicate that the enacted regulations that organize the work of the auditors can effectively enhance the compliance of Jordanian auditors with the code of professional ethics. Nevertheless, it emphasized the need for more shared efforts for more compliance with professional ethics in the auditing profession. The study suggests Many recommendations to enhance auditors’ compliance such as continuous oversight of auditor compliance from the Jordanian Association of Certified Public Accountants, ethical awareness, research and development in the area of ethics, and training programs to explain ethical complexities. This study assures the importance of enhancing ethical compliance in the auditing profession in an emerging country to increase public trust, attract investment, and improve financial statements integrity.

Occurrence, virulence, and resistance genes in Salmonella enterica isolated from an integrated poultry company in Jordan

Salmonella is considered one of the most common foodborne pathogens worldwide. The annual number of hospitalizations and deaths related to zoonotic salmonellosis, which is transmitted from animals to humans and infects poultry and meat, is expected to be significant. Hence, the primary aims of this research were to isolate and characterize Salmonella species obtained from an integrated poultry company and identify some virulence, and antimicrobial resistance, with a specific concern about colistin resistance genes. A total of 635 samples collected from various sources in an integrated company in Jordan were screened for Salmonella species accompanying their virulence and antimicrobial resistance genes. Samples were collected from parent stock house drag swabs, broiler farms, premix, cecum at the slaughterhouse level, pre-chilling and post-chilling stages, and the final product. Salmonella species were detected in 3% (6\\200) of investigated parent stock house drag swabs, 13.8% (11/80) from cloacal swabs from broiler farms, 16.9% (11/65) from boiler farms premix, 24.4% (11/45) from the cecum at slaughterhouse level, 16.4% (9/55) from the pre-chilling stage, 37.8% (17/45) from the post-chilling stage and 53.3% (24/45) from the final product stage. No isolates were detected in feed mills (0/20), parents' premix (0/40), or hatcheries (0/40). Salmonella isolates were resistant to ciprofloxacin (91.0%), nalidixic acid (86.5%), doxycycline (83.1%), tetracycline (83.1%), sulphamethoxazole-trimethoprim (79.8%) and ampicillin (76.4%). Serotyping shows that S. Infantis was the predominant serovar, with 56.2%. Based on the minimum inhibitory concentration (MIC) test, 39.3% (35/89) of the isolates were resistant to colistin; however, no mcr genes were detected. Among antimicrobial-resistant genes, blaTEM was the most prevalent (88.8%). Furthermore, the spvC, ompA, and ompF virulence genes showed the highest percentages (97.8%, 97.8%, and 96.6%, respectively). In conclusion, Salmonella isolates were found at various stages in the integrated company. S. Infantis was the most prevalent serotype. No mcr genes were detected. Cross-contamination between poultry production stages highlights the importance of good hygiene practices. Furthermore, the presence of virulence genes and the patterns of antimicrobial resistance present significant challenges for public health.

The impact of audit committee dimensions on financial reporting efficiency of limited partnership companies listed on the Amman Stock exchange

Currently, the Jordanian economy needs more investment due to the growing financial deficit facing the Jordanian state. Therefore, this study came to increase investors' trust in financial reports issued by Jordanian companies to attract more investments. Based on that, this study will investigate the impact of audit committee dimensions on the efficiency of financial reports of limited partnership companies listed on the Amman Stock Exchange. The data were collected from financial reports issued by 52 limited partnership companies for the year 2021. The study used multiple regression to test the hypotheses. Based on the findings, audit committee dimensions explained the variation in financial reports' efficiency which reached 0.629. The audit committee members' size does not significantly affect the financial reports' efficiency. The significance reached 0.287. However, the knowledge of financial management has a significant positive effect on financial report efficiency; the significance reached 0.000 and the effect volume arrived at 0.699. Also, the findings showed that audit committee meetings have a greater effect on financial reporting efficiency than financial management knowledge. The impact was significantly positive, arriving at 0.790, while the significance reached 0.000. The main research conclusion is that limited partnership companies listed on the Amman Stock Exchange adopt corporate governance to achieve control effectiveness of audit committees to increase financial reporting efficiency to achieve more investments. AcknowledgmentThe publication of this research has been supported by the Deanship of Scientific Research and Graduate Studies at Philadelphia University – Jordan.

Predicting Risk of and Motives behind Fraud in Financial Statements of Jordanian Industrial Firms Using Hexagon Theory

This study intends to identify the motives that lead to increasing or fighting the fraud risk in the Financial Statements (FSs) of industrial companies whose shares are traded in regulated and unregulated markets at the Amman Stock Exchange (ASE) based on the Hexagon theory, which divides the motives for fraud into six factors. The study relied on secondary data to collect and measure the study variables by extracting them from the annual reports that were published by those companies on the website of the ASE during the period of 2012–2017. The collected data were analyzed using the logistic regression model on the SPSS program. The results confirmed that the return on assets (ROA), percentage of independent members in audit committees, and tone-related party transactions had a statistically significant relationship with predicted fraudulent FSs, where these three variables belong to pressure, opportunity, and collusion fraud motives, respectively. Thus, it is worth mentioning that this study is distinguished from previous studies that examined the issue of fraud in Jordanian companies by detecting the motives of fraud according to the Fraud Hexagon theory. Moreover, some of the fraud motives were measured using new variables such as a change in inventory, the age of auditing committee’s members, and tone-related party transactions.

The Adequacy of the Jordanian Regulations in Regulating the Operation of Small and Medium-Sized Enterprises

Small and medium-sized enterprises (SMEs) play a prominent role in the national economic growth and employment, provided they do not experience legal obstacles. This research aimed to investigate the adequacy of the current Jordanian legislation in promoting the operation of small and medium enterprises in Jordan and to identify its shortcomings, which may threaten their continuity. This study used a descriptive and analytical comparative legal approach to investigate global trends in small- and medium-sized company regulation, including the UN Commission on International Trade Law directives. The study also examined Jordanian legal frameworks, particularly those pertaining to companies and trade. The research discussed this issue in two sections. The main question was whether the laws regulating SMEs were adequate. The study concludes that although these projects can be partially covered by current legislation, their particularity and uniqueness necessitate the creation of special regulations that provide extra incentives and maintain their sustainability. As a result, the study suggests amending the Trade Registry System No. (130) of 1966 and the Jordanian Companies Law No. (22) of 1997, among other existing legal frameworks, and to dedicate special provisions that cater to the requirements for the success of these enterprises.

The Specificity of the Error Element in Civil Liability for Companies Dealing in Foreign Stock Exchanges

Jordanian companies deal in the foreign stock exchanges and taking into account the interests of customers require special attention from the legislator, as it is one of the most important transactions that are characterized by modernity, which need specialized legal studies due to the difficulty and complexity of these transactions and the very high risks they face due to their nature, these companies may violate the laws and regulations and the obligations they dictate and cause serious harm to investors in the absence of technical parity between the parties to the contract and in the absence of model contracts. It protects the parties alike, and also the nature of serious risks in trading imposes the question of error as a pillar in the civil responsibility of companies dealing in foreign stock exchanges because of its privacy stemming from the regulatory nature of the obligations of companies dealing in foreign exchanges, taking into consideration that these companies are professional for this work and have a technical privilege, as well as have control that enables them to intervene in trading operations in the event of a breach of their obligations, and a conflict of interest may occur at times. Especially if the ownership of the local and foreign intermediary is for the same legal person.From this point of view and as a result of the danger of trading in foreign stock exchanges and because of its impact on economic and social security in the Kingdom, it was necessary to search for the corner of error and a statement of its privacy.

Supply chain partnership and sustainable performance: does TQM mediate the relationship?

PurposeThe purpose of this study is to assess the effect of supply chain (SC) partnerships on sustainable performance (SP) and investigate the potential mediating role of total quality management (TQM).Design/methodology/approachA total of 185 responses were collected from pharmaceutical industry employees. The research data were analyzed using the partial least squares structural equation modeling approach.FindingsThe results reveal that relationships with suppliers (RS), distributors (RD) and intermediaries (RI) have a direct impact on SP. In addition, this study found that TQM serves as a mediator between RS, RD, RI and SP. This study enhances the understanding of the significance of TQM, SC and SP in business environment development. The findings suggest that organizations in the Jordanian pharmaceutical industry should prioritize the enhancement of their RS, intermediaries and distributors to improve their SP.Originality/valueBy providing decision-makers with valuable information, this study enables them to identify and implement TQM and SC practices to enhance the SP of pharmaceutical companies in Jordan.

Towards environmental sustainability: the nexus between green supply chain management, total quality management, and environmental management practices

PurposeWith the increasing concern over environmental pollution and global warming, companies are required to act responsibly to mitigate these environmental issues. Their activities should adhere to the standards of environmental sustainability. Thus, this study aimed to investigate the impact of green supply chain management (GSCM) and total quality management (TQM) on environmental sustainability, with environmental management practices (EMP) as the moderating factor.Design/methodology/approachA quantitative study was adopted using the management data from various manufacturing companies in Jordan. A total of 362 responses were collected, and the proposed hypotheses were tested using a structural equation model.FindingsThe study findings revealed that both GSCM and TQM significantly and positively influenced environmental sustainability. The impact of TQM on environmental sustainability was higher than that of GSCM. Moreover, no evidence was found on the moderating role of EMP.Practical implicationsThe study’s results highlighted to the decision-makers the main practices to expand the quality implementation across their supply chain to improve environmental sustainability. The study also demonstrated the reasons behind the insignificance of EMPs in strengthening the relationships between GSCM, TQM, and environmental sustainability.Originality/valueWhile there are very few studies examining the relationships between GSCM and TQM on environmental sustainability. This study adds to the literature body as one of a few empirical studies that tested the integrated effect of GSCM and TQM practices within the context of the manufacturing industry in a developing country. Moreover, this study takes a holistic approach by tapping into EMP to confirm whether it moderated the relationships between GSCM, TQM, and environmental sustainability.

The Impact of Strategic Agility on Environmental Sustainability: The Mediating Role of Digital Transformation

In today’s ambiguous and complicated business environment, businesses are required and mandated to be agile and think rapidly. Building on the theory of dynamic capability, the present research makes a strong argument that strategic agility is a key component in managing continuous change effectively. The primary objectives of this research are to examine the impact of strategic agility on digital transformation and environmental sustainability and to explore the effect of digital transformation on environmental sustainability. Additionally, we investigated the indirect impact of strategic agility on environmental sustainability via digital transformation. To achieve these objectives, a self-administered questionnaire was developed and used to gather data from 284 managers in manufacturing companies in Jordan. To test the research hypotheses, structural equation modeling (SEM) with Amos 24.0 was used. The results revealed that strategic agility positively impacted both digital transformation and environmental sustainability. Furthermore, digital transformation positively affects environmental sustainability. Additionally, digital transformation partially mediated strategic agility’s impact on environmental sustainability. The results indicate that businesses use and employ strategic agility as a means to achieve the desired results, and it may operate as a proactive facilitator and catalyst, allowing organizations to optimize most of their available resources, achieve the desired digital transformation, and accomplish the expected environmental sustainability objectives and results.

Lean vs agile project management in construction: impacts on project performance outcomes

PurposeThe present research aims to investigate how lean project management (LPM) and agile project management (APM) affect project performance outcomes in the construction sector in Jordan. This study focuses on six key project performance outcomes, namely cost, time, quality, client satisfaction, innovation and responsiveness.Design/methodology/approachThe present study employed a quantitative approach to achieve the research objectives. Accordingly, a multi-item survey questionnaire was prepared to gather data from 392 project managers from construction companies in Jordan. The study’s model showed acceptable levels regarding reliability, validity, fit indices and discriminant validity. In order to test the hypotheses of this study, path analysis was employed using Amos 24.0 software.FindingsLPM demonstrated a remarkably high positive impact on cost performance. It also positively affected quality performance and client satisfaction. However, LPM insignificantly affected time, innovation and responsiveness performance measures. On the other hand, APM showed a notably high positive impact on innovation and responsiveness. The findings also revealed that APM positively impacted quality performance and client satisfaction. In addition, APM negatively impacted cost performance and insignificantly impacted time performance.Originality/valueThis study is one of the first comprehensive studies to empirically examine the impact of both LPM and APM on various project performance outcomes in the construction industry in the context of a developing country. It reveals some similarities and differences between LPM and APM with regard to their impacts on project management outcomes. The findings are expected to guide managers in selecting the appropriate project management approach based on the desired performance outcomes. Accordingly, it offers important implications for project managers in construction companies.

COMPETITIVE CREATIVITY BETWEEN TALENT MANAGEMENT AND SERVICE QUALITY: EVIDENCE FROM JORDAN INFORMATION TECHNOLOGY SECTOR

Talent management encompasses a wide range of human resources management practices aimed at attracting and developing talented employees. This study examines the impact of talent management on service quality in Jordanian information technology companies, focusing on the perspective of talented employees and the role of competitive creativity. Data was collected from 341 employees at thirty different Jordanian companies using stratified random sampling techniques. The collected data was then analyzed using SPSS and AMOS SPSS analysis techniques to test the conceptual framework. The study findings demonstrate a significant positive impact of talent management on improving service quality, mediated through the indirect influence of competitive creativity. Furthermore, the direct effects of talent management practices such as talent attraction and talent succession planning were found to have a significant positive effect on service quality. On the other hand, the study reveals that other talent management practices, such as talent development, have a negative direct effect on service quality. Given that this study is the first to investigate the mediating role of competitive creativity between talent management and service quality in Jordan, the limitations of the study were carefully considered.

The Impact of Board of Directors and Islamic Shariah on Company Internal Control: Evidence from Jordan


 The purpose of this paper is to examine the impact of corporate governance and compliance with Shariah on internal controls over financial reporting. It also examines the moderating role of Shariah compliance on the relationship between corporate governance structures and internal reporting controls. Ordinary least square (OLS) models are applied to 94 listed Jordanian companies on Amman Stock Exchange over the period 2015-2021. The empirical evidence shows board size, board meetings, Shariah compliance, and auditor type have a negative impact on material weaknesses in internal controls (MWIC). Second, unitary leadership, where the same individual is both the chair and CEO, is positively correlated to MWIC. Third, Shariah compliance strengthens the effect of board meetings, suggesting that Shariah compliance and good corporate governance mechanisms reinforce each other to ensure higher-quality internal financial reporting controls.

Comprehensive board composition and corporate social responsibility disclosure: a case of Jordan before and after the Arab Spring crisis

PurposeThe purpose of this paper is to examine the impact of social movements engendered by the Arab Spring crisis on the relationship between corporate social responsibility disclosure (CSRD) and corporate governance attributes, particularly board composition, considering the importance of governance after the Arab Spring event.Design/methodology/approachContent analysis was used to examine the extent and nature of CSRD in annual reports of Jordanian companies listed on the Amman Stock Exchange covering the period 2009–2016. A dynamic regression model using panel data is then undertaken for a sample of 114 listed companies over the period to analyse the potential impact of board composition on the level of CSRD.FindingsThe results reveal that there was a significant increase in the level of CSRD post-the Arab Spring crisis; and that governance appears to be a key driver. Specifically, board age, directors educated in business and/or accounting-related fields and foreign members are found to have a significant positive relationship with CSRD.Originality/valueLooking at the Arab region pre- and after the Arab Spring helps to complete the global picture of how company governance can lead to improved CSR performance. Specifically, this region has been behind in developing rules and codes that include CSR. The results show that having a diverse board, with directors with expertise specific to the context, increases the effectiveness of stakeholder management through CSRD. The results, therefore, offer valuable insights for companies, policymakers and for the development of regulations.

IT Governance and Audit Risk in Jordanian Companies: The Moderating Role of Audit Quality

Purpose: In order to better understand how IT governance COBIT5 (planning and organization (PO), acquisition and implementation (AI), support and delivery (SD), monitoring and evaluation (ME), guidance and control (GC), and audit risks interact in Jordanian businesses, this study will examine the moderating role of audit quality. Design/methodology/approach: This study uses a mixed method combining quantitative and qualitative method. Primary data: IT governance and audit risk with questionnaires distributed to 528 workers from each of the 176 Jordanian companies. The three employees served as a representative sample from the finance, internal audit, and IT departments. Secondary data: Using SPSS software, the data was analyzed to determine the audit quality using the financial statements of Jordanian businesses listed on the Amman Stock Exchange for the year 2020. Results and conclusion: The results of this study have shown that the COBIT5 framework is an important accountability mechanism for motivating expected behavior in the workplace when it comes to technology use. Audit risk is directly affected by the IT governance structure. Practical implications: This study is important for companies in Jordan, by presenting an integrated framework in this study that combines IT governance, audit risks and audit quality. This study was expected to facilitate the companies' efforts by ensuring a sufficient degree of confidence in the applied accounting system and improving the information security within the system to maintain the organizations and audit quality at the same time. Originality/value: This study adds to the body of knowledge on IT governance, audit risk, and audit quality that has concentrated on developing nations, particularly Jordan.