Jordanian Industrial Sector Research Articles

Relationship between corporate governance and audit quality in the industry sector: Moderating role of firm performance

This study explores the relevance of corporate governance mechanisms in determining audit quality, with a specific focus on the moderating role of firm performance in the Jordanian industrial sector. Audit quality is essential for ensuring transparency and accountability in financial reporting, making this analysis highly relevant for stakeholders aiming to strengthen corporate governance. The study sample included 64 manufacturing companies listed on the Amman Stock Exchange for the study period (2014–2022), with a total of 474 firm-year observations. The regression analysis is used to investigate the study hypotheses, including the key variables related to corporate governance, board performance, and audit quality. The findings show that company size has a significant positive effect on audit quality. There is no significant impact of CEO duality, independent directors, and ownership concentration on audit quality within the Jordanian industrial sector. The R² value of 0.067 indicates that approximately 6.7% of the variance in audit quality is explained by the study variables, while the F-value of 6.633, with a significance level of 0.00, suggests that the overall model is statistically significant, even though the explanatory power is relatively low. The study shows that company size is important to improve audit quality; other governance mechanisms may not have the same impact in the Jordanian industrial sector.

Artificial Neural Networks Modeling of the Electricity Demands in the Jordanian Industrial Sector

Artificial Neural Networks Modeling of the Electricity Demands in the Jordanian Industrial Sector

Internet of Things "IoT" and the Quality of Decision-making during the Covid-19 Pandemic: A Perspective of Accounting Managers within the Jordanian Industrial Sector

Internet of Things "IoT" and the Quality of Decision-making during the Covid-19 Pandemic: A Perspective of Accounting Managers within the Jordanian Industrial Sector

The effect of financial reporting quality on earnings quality of industrial companies

This study investigates the relationship between financial reporting quality and earnings quality in Jordanian industrial companies. This paper used a survey-based approach, utilizing questionnaires to collect data from selected participants representing Jordanian industrial companies using SmartPLS 4. The study confirms a positive relationship between financial reporting and earnings quality in Jordanian industrial companies. Preparing accurate financial reports allows visualization of the company’s financial position and performance in accordance with accounting standards and disclosure practices. The findings offer valuable guidance to regulators, investors, and stakeholders in understanding the significance of financial reporting quality and its implications for evaluating financial performance and decision-making processes. In addition to promotes financial transparency and informed decision making in the Jordanian industrial sector. This study enhances understanding of the importance of financial reporting quality for ensuring reliable and accurate earnings information. The study’s PLS-SEM methodology also contributes to the methodological literature in this area.

Does the adoption of blockchain technology add intangible benefits to the industrial sector? Evidence from Jordan

PurposeThis study aims to examine the feasibility of adopting blockchain technology in Jordan’s industrial sector and its intangible benefits. It also analyzes the influence of factors like technological, process, cultural and leadership readiness on the willingness of enterprises to adopt blockchain.Design/methodology/approachTo gain insights into the potential adoption of blockchain technology and its intangible benefits for enterprises in the Jordanian industrial sector, this study gathered perspectives from a broad range of professionals, including financial managers, internal control staff, accounting departments, IT department managers and IS-related personnel. This was achieved through the administration of a comprehensive questionnaire designed to capture their opinions.FindingsThis study highlights the importance of technological and leadership readiness in adopting blockchain. It also shows that blockchain adoption can yield significant intangible benefits for enterprises. However, the study did not find a significant relationship between process readiness, cultural readiness and the intention to adopt blockchain.Practical implicationsThe study’s outcomes underscore the importance of prioritizing technological and leadership readiness for enterprises and policymakers intending to adopt blockchain technology. By doing so, they can increase their willingness to adopt this technology and leverage its benefits.Originality/valueThis pioneering study investigates the adoption of blockchain technology and its intangible benefits for Jordanian businesses. It also examines the influence of factors like technological, process, cultural and leadership readiness on the decision to adopt blockchain in the industrial sector.

The Effect of Corporate Social Responsibility on Competitive Advantage through Organizational Learning in the Jordanian Industrial Sector

This study not only attempts to stress the direct effect of corporate social responsibility on competitive advantage but also the mediating effect of organizational learning at Jordanian industrial companies. In order to evaluate the relationships, the researcher uses a quantitative research method in which a questionnaire is designed based on previous studies. The questionnaire included 38 Likert scale items distributed to 325 top and middle managers working at Jordanian industrial companies registered on ASE. Data is analyzed using SPSS. The results show that only two dimensions of corporate social responsibility (public, customer, and employee orientation, and fair operation) significantly impact competitive advantage. Also, it has been found that organizational learning mediates the impact of two dimensions of corporate social responsibility (public, customer, and employee orientation, and fair operation) on competitive advantage. The originality of this study stems from the mediating impact of organizational learning on the relationship between corporate social responsibility and competitive advantage, particularly in the manufacturing industry of Jordan. The researcher made some recommendations to management in which using organizational learning capabilities can explain the influence of corporate social responsibility on taking advantage of corporate resources.

The Role of Corporate Governance Principles on Improving Market Performance

Purpose: The study aims to clarify the role of corporate governance principles on improving market performance at Jordanian industrial sector by measuring the governance principles through board of directors members size (BSIZE), number of independent members (BCOMP), existence of an audit committee (AUDCOM), and ratio of institutional ownership (InstitOwn) while the market performance represented in dependent variable has been measured through modern indicators in evaluating market performance; such as market value added (MVA), economic value added (EVA) and return on assets (ROA), which considered one of the traditional indicators in evaluating market performance. Theoretical Framework: Due to the great role played by corporate governance on stabilizing financial markets, increasing the competitiveness of public shareholding companies by enhancing transparency, improving the financial performance of companies, and achieving a balance of interests between the company's management, shareholders, employees, creditors, and other related parties, which means reducing capital cost and the possibility of obtaining less expensive sources to finance company's future projects. Design/Methodology/Approach: The study sample consisted of (70) industrial companies that formulate (79%) of study population, during the study period of year 2022 Findings: The study results showed a statistically significant relationship between the market value added ratio of institutional ownership and return on assets, and nonexistence of statistically significant relationship between the institutional ownership ratio and economic value added. On the other hand, study showed no statistically significant relationship between the financial performance of industrial companies’ measures and the independent factors of board of directors’ size, number of independent members, and the presence of auditing committee. Research, Practical & Social Implications: The study relied on multiple regression analysis models to identify most important variables that govern companies’ performance.

The effect of big data on financial reporting quality

The current manuscript aimed to explain the impact of big data on the financial reporting quality of the industrial sector in Jordan. To achieve the manuscript goals and validate hypotheses, a field study was conducted by distributing a questionnaire to 325 financial managers in industrial companies listed on the Amman Stock Exchange during a specific period. Gathered data were analyzed using structural equation modeling (SEM). The manuscript concluded that the big data dimensions, including variety, volume, and velocity, had a positive impact on financial reporting quality. Therefore, a set of recommendations were provided to managers of the industrial companies in Jordan to put in place an extensive data governance system to as-sure data quality, security, privacy, and compliance. To ensure the integrity and dependability of financial reporting, define data ownership, create data quality standards, and develop processes for data access, use, and preservation.

The potential of energy efficiency measures in the industrial sector in Jordan

Industries around the globe share mutual challenges and interests. They strive to utilise their energy inputs better, considering that energy is crucial in many industrial sub-sectors. Industries always pursue a reduction in energy consumption to curtail costs and become more competitive. This paper presents a collaboration between industry and academia to study the energy efficiency measures given in Jordan's previously-done related projects and audits. This paper evaluates these measures’ outcomes by calculating the anticipated annual savings, the capital needed for the investment, and the payback period. The results show that if all the mentioned measures are implemented, a yearly saving of 60.5 GWh would be accomplished, corresponding to 8.5 million USD with an overall investment of 18.3 million USD, resulting in a payback period of 2.2 years.

Smart Business Characteristics as an Approach to Develop Business Performance

The current study aimed at examining the impact of smart business networks' characteristics on organizational performance from the perspective of industrial sector's decision makers in Jordan. Variables of (Adaptability, Agility, Innovation, Ability to meet requirements, and Robust Behavior) were adopted as the main and most obvious characteristics of SBN. Quantitative approach was adopted and (112) general managers, projects managers and operations managers responded to the questionnaire. Results of study indicated that respondents within industrial sector in Jordan had very positive and supportive attitudes towards the idea of SBN among organizations; they also seemed to have been a part of an SBN of an industrial nature and they have experienced its positive impacts on their and their organizational performance. Results of study also indicated that all hypotheses of study were accepted and characteristics of SBN were supportive in developing organizational performance, among the most influential variables of study appeared to be the robust behavior which seemed to have influences the long-term plans that are adopted by the organization through robustly supporting every milestone adopted. Study recommended granting extra attention to IT infrastructure within organizations in order to be able to cope with the concept of SBN and benefit from all its ramifications.

THE NEXUS BETWEEN ORGANISATIONAL CAPABILITIES, ORGANISATIONAL READINESS AND REVERSE SUPPLY CHAIN ADOPTION

Successful Reverse Supply Chain Adoption (RSC) adoption requires a clear identification and understanding of Organizational Capabilities, assets, and resources internally and externally. Towards this end, this research assesses the nexus between organisational capabilities and RSC Adoption with a focus on the mediation role of organisational readiness. A survey method was used to achieve the research objectives. Different manager levels from the Jordanian industrial sector were selected by using a convenient sample technique. SMART PLS 3 was used to conduct Structural Equation Modelling (SEM). The outcomes represent a significant influence for internal organisational capabilities on the RSC adoption. As a mediation result, organisational readiness has a mediation role between internal organisational capabilities and the RSC adoption.

Measuring financial fragility using the (MINSKY) model for a sample of Jordanian industrial companies for the period (2005-2019)

The research aims to measure the extent of financial fragility that companies operating within the Jordanian industrial sector may suffer from for the period (2005-2019) and registered on the Amman Stock Exchange. To this unobtrusive risk, which is (the risk of financial fragility) by managers and investors in order to hedge and avoid it, as it is one of the unsystematic risks that may afflict companies and institutions that appear to be sound and carry out their activities successfully, but in the event of their exposure The simplest financial shock may collapse and enter into financial problems that may lead it to bankruptcy and liquidation, which also contributes to the orientation of this concept, which is characterized by somewhat modernity of financial concepts, especially within the Arab community, to attract researchers and academics to study and analyze this risk and reduce it and its effects that it leaves from It could be a cause of public financial crises, and the Minsky accounting framework index was chosen to measure financial fragility, and the research reached a set of conclusions, the most important of which was that the majority of companies with The Jordanian Industrial Company, which is registered on the Amman Stock Exchange, is one of the small-sized companies based on the size of the assets it owns, as well as the majority of companies that suffer from financial fragility..

The value relevance of the revenue from contracts with customers standard (IFRS 15) and management motives: an empirical examination on Jordanian industrial companies

The study aims to evaluate the feasibility of applying IFRS 15 to improve the quality of accounting information. This improvement can be achieved via its relevance to investors’ decisions in the financial market and by testing two hypotheses. The first one shows the different ranges in Value-Relevance for revenue pre and post-application IFRS 15. The second attempts to know the difference in the management’s motives on the soothing revenue process pre and post the standard application. The quantitative analysis method uses the multiple regression analysis models for some companies in the Jordanian industrial sector. The study sample consists of 39 industrial companies registered in the Amman Stock Exchange for the first two periods from 2014-to 2016, while the second is from 2017 to 2019. The first period represents the period before the application of IFRS 15. In contrast, the second period represents the standard application period, whereas the second period represents the period of the standard application. The statistical analysis results indicate a decrease in the revenue response factor after the application of IFRS 15 and that its application did not undermine the management’s interventions in the practice of soothing revenue.

E-HRM practices and sustainable competitive advantage from HR practitioner’s perspective: A mediated moderation analysi

This paper seeks to investigate the impact of Electronic Human Resource Management (e-HRM) practices on attaining Sustainable Competitive Advantage (SCA) in the context of the Jordanian Industrial Sector (JIS) and identify the mediating role of e-HRM Perceived Usefulness (PU) and e-HRM Perceived Ease of Use (PEOU). Furthermore, it investigates the moderating role of User Satisfaction and e-HRM Continuance Usage Intention. To achieve the paper objectives, a Mediated-Moderation Model was designed. The researchers distributed (750) questionnaires, (615) questionnaires were returned and validated for analysis in HRM and development divisions and based on a Census method with the response rate was about (82%). The ‘Structural Equation Modeling’ (SEM) methodology was used, and for analysis, SPSS and Amos were applied. The results indicated that e-HRM practices had significant influence on SCA. The paper also demonstrated that there was a significant mediate effect of TAM constructs on the relationship between e-HRM practices and SCA. Finally, the findings indicated that the user satisfaction and e-HRM continuance usage intention did not moderate the relationship between e-HRM-PEOU and PU and SCA path.

Do formal and informal institutions matter for firm-level strategic environmental actions?

We developed an overarching multi-level mediation model using 199 responses from 53 companies from the industrial sector in Jordan to examine (1) the mediation effect of firm-level environmental climate on the relationship between formal regulatory institutions and firm-level strategic environmental actions, and (2) the role that informal institutions conveyed via political, normative, and business connections plays on the environment-related cognitions of top managers. At the ‘within’ level, our results indicate that top managers with strong political connections develop negative environment-related cognitions while those with strong normative and business connections develop positive environment-related cognitions. At the firm-level, our results reveal that firm-level environmental climate – as an aggregated measure of the ‘within’ level environmental cognitions of top managers – fully mediates the relationship between formal regulatory institutions and firm-level strategic environmental actions. This study demonstrates how multilevel research is used to enrich understanding of firm-level strategic environmental actions, with implications beyond Jordan.

The Impact of Liquidity and Leverage on Profitability in Industrial Sector in Jordan

Financial leverage is linked to the funding structure in terms of the proportion of debt in the capital structure; the higher the financial leverage is, the more the company depends on debt in its financing structure. On the other hand, the lower the debt is, the more the company relies on equity funding. The company thus decides the optimal funding combination that minimizes the company's capital costs and maximizes shareholder returns.The aim of this analysis was to quantify the effect of the analysis on the profitability of the Jordanian industrial sector listed on the Amman Stock Exchange during the period (2008-2017) and on a sample of (54) industrial companies to assess the impact of leverage and liquidity. In order to evaluate the data obtained from the actual financial statements of the industrial companies listed on the Amman Stock Exchange, a descriptive and systematic methodology was used. As a result, the statistical conclusion showed that the effect of liquidity and leverage on profitability was a significant result.

Requirements for enhancing the standard of accounting education and its alignment with labor market requirements a case study hospitality and industrial sector in Jordan

ABSTRACT The purpose of this paper is to address the expectations of enhancing the quality and compatibility of accounting education in Jordan with labor market requirements. To accomplish this goal, a questionnaire was circulated to a group of (100) employees. The researchers used the questionnaire to assess the views of the survey group, having studied the scholarly literature on the topic of the study, whether it was given in sources or in scientific journals and theses. This research is an exploratory, empirical study which uses the methodology of data collection and interpretation to draw conclusions. The findings indicate that the content of the study plans is firmly and statistically substantially related to labor market requirements. Either after the expertise and specialization of the teacher. The research leads to debates on accounting education issues in particular accreditation challenges and a clear regulation of the academic interaction with the practice.

Do formal and informal institutions matter for firm-level strategic environmental actions? A multi-level perspective from Jordan

We developed an overarching multi-level mediation model using 199 responses from 53 companies from the industrial sector in Jordan to examine (1) the mediation effect of firm-level environmental climate on the relationship between formal regulatory institutions and firm-level strategic environmental actions, and (2) the role that informal institutions conveyed via political, normative, and business connections plays on the environment-related cognitions of top managers. At the ‘within’ level, our results indicate that top managers with strong political connections develop negative environment-related cognitions while those with strong normative and business connections develop positive environment-related cognitions. At the firm-level, our results reveal that firm-level environmental climate – as an aggregated measure of the ‘within’ level environmental cognitions of top managers – fully mediates the relationship between formal regulatory institutions and firm-level strategic environmental actions. This study demonstrates how multilevel research is used to enrich understanding of firm-level strategic environmental actions, with implications beyond Jordan.

The Effects of Intellectual Capital on Firm Performance of Industrial Sector in Jordan

This paper aims to examine whether intellectual capital (IC), measured through the value-added intellectual coefficient (VAICTM) affects the firm performance of the industrial sector in the Amman Stock Exchange (ASE). Methodology: The sample comprised 50 industrial companies listed in ASE over the period 2008-2017. The methodology included estimating the impact of IC, measured through VAICTM and its components on the market to book ratio (M/B) and earning per share (EPS). Research hypotheses were tested through the display of descriptive statistics, multicollinearity, normality tests, correlation matrix, and multiple regression models. Main Findings: The results indicate a positive relationship between VAICTM with the M/B ratio and EPS. As for the M/B ratio, the result is a positive significant relationship for the CEE but not for the SCE, and HCE. However, the results are counterproductive for EPS and found HCE, and SCE has a significant impact on the EPS but CEE not significant. Applications: The results suggest that industrial companies in Jordan must hold practical and knowledge experiences because it is vital for their competitive advantage, and must reduce unemployment rates by employing new employees with expertise and skills. The present study integrates previous methodologies in order to investigate the relationships between IC and firm performance of industrial companies listed on the ASE. Novelty/Originality of this study: This study extends previous studies on intellectual capital and firm performance in Jordan by incorporating more samples and the latest period of study. In addition, it also shed some new findings on the effect of intellectual capital on the M/B ratio and EPS.

Dynamic interactions among the industrial sector and its determinants in Jordan

The industrial sector is one of the most vital sectors in the national economy, so different local and global factors affect its performance. The study examines the impact of the global and local macroeconomic variables on the industrial index of the Amman Stock Exchange. This study covered the period from January 2007 to December 2016, which is considered as a crucial period in the Middle Eastern countries. This period encompasses the worldwide economic meltdown from 2007 to 2008, the Arab spring of 2010 and the wars in Syria and Iraq from 2012 to 2014. The macroeconomic variables used in this study as domestic variables from Jordan were the deposit interest rate (IN), inflation rate (INF), money supply 2 (MS2), trade balance (TR), producer price index (PPI) and the industrial production index (IPI). At the same time the global oil price (WTI) was used as a global factor to measure the external shocks. This study used the ARDL bound testing approach to examine the co-integration, short-run and long-run relationships. Moreover, Granger causality test was used to detect the causality relationship in the short and long run between the selected macroeconomic indicators and the industrial index. It was found out that the inflation rate positively influenced the industrial index, which provides some evidence that the industrial sector in Jordan acts as a hedge against inflation. In addition, the global oil price showed a significant negative impact on the industrial sector. Some important implications for investors, government bodies, and policymakers are discussed.