Jordanian Industrial Sector Research Articles

Examining the quantity and quality of online sustainability disclosure within the Jordanian industrial sector: a test of GRI guidelines

Reporting on corporate sustainability practices as being in congruence with social expectations is the core idea of legitimacy theory. Therefore, nowadays many organizations are making efforts to inform their stakeholders about the social, environmental and economic changes in their performance. Consistent with the argument above, this paper aims to examine the quantity and quality of corporate online sustainability information of the industrial sector in Jordan based on the Global Reporting Initiative guidelines. In line with content analysis method, this paper analyzes the quantitative sustainability indicators disclosed during last 7 years (2012–2018) by all the industrial sub-sectors listed on the website of Amman Stock Exchange. The results revealed that although all Jordanian industrial sub-sectors practice of the quantitative sustainability disclosure is in a modest degree in the period of 2012–2018, the emphasis on environmental and economic indicators was less than on social indicators in the corporate online reports. Results on qualitative analysis indicated that, considering all sustainability indicators, only the disclosure on indirect economic impacts, procurement practices, product responsibility, and economic performance have been reported at satisfactory levels of quality but with no compliance of GRI guidelines. According to the obtained results, policy makers in the Jordanian industrial sector should be very important players in order to open the channels of dialogue with corporate managers on the importance of their role in taking more responsibility for their non-financial operations. Consequently, this should ensure more transparent accountability through more quantitative and qualitative sustainability disclosure in the corporate reports.

Reality of the Industrial Sector in Jordan

The study aims to examine Jordan's industrial sector by using descriptive statistical and econometric methods. For the purposes of analysis, we used a time series data for the Jordanian industrial sector (Mining, manufacturing, and electricity) from 1990 to 2017. The study came out of the importance of the Jordanian industrial sector. During the study period, the industrial sector ranked first among the sectors in terms of relative importance in its contribution to GDP at an annual average rate of 16% . Comparing the industry's contribution to Jordan's GDP with other countries, Jordan is still relatively late compared to semi-industrialized developing countries, like Singapore, Indonesia, South Korea, Thailand, Malaysia, and Egypt. In addition, there was a fluctuating rise in labor productivity in the industrial sector, this may be due to the increase in the amount of fixed capital, as expressed by high capital intensity technology, or to the development of labor’s skills and competencies. The study recommended the need to work to improve the output of the educational system in line with the requirements of revitalization of the industrial sector, and work to increase the efficiency of vocational training institutions in order to raise the productive efficiency of local labor because of the impact of the revitalization of the industrial sector. Keywords: industry , manufacturing, Mining, market , Jordan, electricity, Value added DOI : 10.7176/JESD/10-18-11 Publication date :September 30 th 2019

The effect of supply chain agility on export performance

Purpose The purpose of this paper is to examine the effect of supply chain agility (SCA) on supply chain responsiveness (SCR), supply chain innovativeness (SCI) and export performance (EP) in the industrial sector in Jordan. It also explores the effects of SCR and SCI on EP. In addition, the study investigates the mediating effects of SCR and SCI on the relationship between SCA and EP. Design/methodology/approach A questionnaire was prepared based on the extant literature. Data were gathered from 290 companies representing various types of manufacturing in Jordan. The appropriate tests were employed to ensure the validity of the study constructs and their reliability. Hypotheses were tested using structural equation modeling. Findings SCA was found to directly and positively affect EP. It also positively affected SCR and SCI. In addition, SCR and SCI fully mediated the SCA–EP relationship. Originality/value This study is one of the first to investigate the effect of SCA on EP. Also, it is the first, to the best of the authors knowledge, to highlight the effect of SCA on SCI. Further, this is the first study to examine the mediating effect of SCI on the SCA–EP relationship. Similarly, the mediating effect of SCR on the SCA–EP relationship has rarely been investigated in the literature.

Factors that affect Employees Job Satisfaction and Performance to Increase Customers’ Satisfactions

In order to help the Jordanian industrial sector to minimize the amount of time and money currently spent on recruiting and training new employees due to the rapid employee turnover rate, this study aims to identify the factors which encourage employees to remain in their jobs for a long-term as opposed to those that create negative sentiments thus, leading employees to quit. The factors under focus are wages, organizational culture, benefits, job satisfaction, stress, training and development, promotion prospects, and job security. The study measures the impact of each factor on employee satisfaction. The research population is the body of employees in Jordan’s industrial sector, with a random sample of industrial employees representing the population. The quantitative method is used to examine the research question. The study found that Jordanian employees care the most about their salaries and position more than any other factors. Therefore, we recommend that Jordanian manufactures consider studying the range of salary for each position, so they do not miss out on talented people or lose a good employee.

The role of the audit committee in moderating the negative effect of non-audit services on earnings management among industrial firms listed on the Amman Stock Exchange

This paper examines the effectiveness of the audit committee in limiting the adverse effects of the provision of non-audit services (NAS) on earnings management. In addition, the current study examines the effect of surplus free cash flow and NAS on earnings management. Earnings management occurs less frequently when the audit committee is effective. In this study, audit committee effectiveness refers to the overall effectiveness of the committee that was measured using a composite measurement of effectiveness. The sample comprised 336 industrial firms listed on the Amman Stock Exchange from 2014 to 2016. The results documented that the positive relationship between surpluses free cash flow and earnings management. This study contributes to the literature by providing evidence that investors realise that NAS harms the independence of the auditor by creating an economic bond between the auditor and client that could negatively affect audit quality and hence earnings credibility. As does all research, this study suffers from limitations, including the fact that this study sheds the light only on the industrial sector in Jordan, Thus, the need exists for more research to be conducted using other sectors in Jordan and other countries as well to determine the effects of other variables on earnings management from other perspectives.

The role of the audit committee in moderating the negative effect of non-audit services on earnings management among industrial firms listed on the Amman Stock Exchange

This paper examines the effectiveness of the audit committee in limiting the adverse effects of the provision of non-audit services (NAS) on earnings management. In addition, the current study examines the effect of surplus free cash flow and NAS on earnings management. Earnings management occurs less frequently when the audit committee is effective. In this study, audit committee effectiveness refers to the overall effectiveness of the committee that was measured using a composite measurement of effectiveness. The sample comprised 336 industrial firms listed on the Amman Stock Exchange from 2014 to 2016. The results documented that the positive relationship between surpluses free cash flow and earnings management. This study contributes to the literature by providing evidence that investors realise that NAS harms the independence of the auditor by creating an economic bond between the auditor and client that could negatively affect audit quality and hence earnings credibility. As does all research, this study suffers from limitations, including the fact that this study sheds the light only on the industrial sector in Jordan, Thus, the need exists for more research to be conducted using other sectors in Jordan and other countries as well to determine the effects of other variables on earnings management from other perspectives.

The impact of the liberalization of foreign trade in the growth of the industrial sector in Jordan For the period (1990 – 2012)

The foreign trade sector is considered one of the important sectors due to effective role in various fields, as is the importance of research that deals with an important topic, and a contemporary and high impact economic, social and political is represented by liberalization Foreign Trade of Jordan and resulting from the effects of realized and the future , one of the threads that combine tradition and modernity at the same time in the economic literature. The hypothesis of the research is that the liberalization of foreign trade had a positive impact on economic growth, and after the economic reforms and structural adjustment programs and bring about structural changes in the industrial structure and foreign trade sector there was a positive relationship between liberalization of foreign trade and the growth of the industrial sector in Jordan . The research aims at studying and analyzing the impact of liberalization of foreign trade in the growth of the industrial sector in Jordan within the framework of a typical econometric applied to collect information and data from official sources and Internet web sites as well as usage of the method of theoretical and quantitative analysis to reach at a set of conclusions and proposals. .

The determinants of employee performance in Jordanian organizations

Purpose - The study aims to explore the determinants of employees’ performance in Jordanian industrial sector specifically exploring the impact of employees’ satisfaction, management standards and trainings on employee’s performance while exploring the mediating impact of employees’ engagement. Methodology - Thus, a sample of 100 administrative and executive managers is selected from industrial sector of Jordan through convenient sampling. Primary data is collected, distributing 2 questionnaires to each organization; one for the administrative manager and one for the executive manager individually. Quantitative data analysis technique is adopted while implementing structural equation modelling through AMOS. Findings- The study found that employees satisfaction, management standards and trainings are significant factors for employees’ performance; having significant impact on employee engagement that ultimately leads towards employees’ performance. But the most significant among these three is the employee satisfaction. Conclusion- Organizations should focus on employee satisfaction, management standards and trainings to enhance their engagement towards work, hence improving their performance.

The Role of Knowledge Management Process and Intellectual Capital as Intermediary Variables between Knowledge Management Infrastructure and Organization Performance

Aim/Purpose: The objective of this study was to assess the interrelationships among knowledge management infrastructure, knowledge management process, intellectual capital, and organization performance. Background: Although knowledge management capability is extensively used by organizations, reaching their maximum financial and non-financial performances has not been fully researched. Therefore, organizations need to optimize their performance by exploiting knowledge management capability through the accumulation of intellectual capital, where the new competitiveness is shifting from tangible to intangible resources. Methodology: This study adopted a positivist philosophy and deductive approach to accomplish the main goal of this research. Moreover, this research employed a quantitative approach since this study is concerned with causal relationship between variables. A questionnaire-based survey was designed to evaluate the research model using a convenience sample of 134 employees from the food industry sector in Jordan. Surveyed data was examined following the structural equation modeling procedures. Contribution: This study highlighted the potential benefits of applying the knowledge management capabilities, intellectual capital, and organizational performance to the food industrial sector in Jordan. Future research suggestions are also provided. Findings: Results indicated that knowledge management infrastructure had a positive effect on knowledge management process. In addition, knowledge management process impacted positively intellectual capital and organization performance and mediated the relationship between knowledge management infrastructure and intellectual capital. However, knowledge management infrastructure did not positively associate to organization performance. Recommendations for Practitioners: The current model is designed to help managers and decision makers to improve their management capabilities as well as their organization financial and non-financial performance through exploiting the organizational knowledge management infrastructure and intellectual capital approaches. Recommendation for Researchers: Our findings can be used as a base of knowledge to conduct further studies about knowledge management capabilities, intellectual capital, and organization performance following different criteria and research procedures. Impact on Society: The designed model highlights a significant organizational performance approach that can influence Jordanian food industrial sector positively. Future Research: The current designed research model can be applied and assessed further in other sectors including banking and industrial sectors across developed and developing countries. Also, we suggest that in addition to focusing on knowledge management process and intellectual capital as mediating variables, future research could test our findings in a longitudinal study and examine how to affect financial and non-financial performance.

Dose Listed Jordanian Manufacturing Firms’ Profitability and Size Affecting External Audit Fees?

The external audit services and fees charged by clients to their auditors are clearly of benefit to both clients and auditors: Clients are legally required to have their financial statements audited and desire the fees they pay to be plausible, auditors render such services and care to ensure that the fees they charge are enough to qualify a favorable and pleasant service to be provided (Kikhia, 2014). What distinguish the current investigation is the empirically examination of profitability and size and how affecting the external audit fees in industrial sector in Jordan for a total of five years, also the current investigation is prompted by the absence of studies on auditing and consulting expenses in Jordan, especially in manufacturing sector, which leads in this study to examine the effect of Profitability and size of listed Jordanian Manufacturing firms on External Audit Fees. To achieve this target the study used quantitative techniques by using the (Eviews) software during the period from 2010 to 2015. The outcomes showed that there is no significant effect of return on asset (ROA) of listed Jordanian Manufacturing firms separately on external audit fees, also, there is a significant effect of size of listed Jordanian Manufacturing firms separately on external audit fees, and finally, there is a significant effect of Profitability and size of listed Jordanian Manufacturing firms jointly on external audit fees.

A Comparison of Jordanian Bankruptcy Models: Multilayer Perceptron Neural Network and Discriminant Analysis

<p>The main purpose of this study is to develop and compare the classification accuracy of bankruptcy prediction models using the multilayer perceptron neural network, and discriminant analysis, for the industrial sector in Jordan. The models were developed using the ten popular financial ratios found to be useful in earlier studies and expected to predict bankruptcy. The study sample was divided into two samples; the original sample (n=14) for developing the two models and a hold-out sample (n=18) for testing the prediction of models for three years prior to bankruptcy during the period from 2000 to 2014.</p><p>The results indicated that there was a difference in prediction accuracy between models in two and three years prior to failure. The results indicated that the multilayer perceptron neural network model achieved a higher overall classification accuracy rate for all three years prior to bankruptcy than the discriminant analysis model. Furthermore, the prediction rate was 94.44% two years prior to bankruptcy using multilayer perceptron neural network model and 72.22% using the discriminant analysis model. This is a significant difference of 22.22%. On the other side, the prediction rate of 83.34% three years prior to bankruptcy using multilayer perceptron neural network model and 61.11% using discriminant analysis model. We indicate there was a difference exists of 22.23%. In addition, the multilayer perceptron neural network model provides in the first two years prior to bankruptcy the lowest percentage of type I error.</p>

The Impact of Technological Development on Jordanian Industrial Sector

<p>The technological advancement being considered as an essential core of economic development, whereby the introduction of new technology will not only reduce production costs, but could also lead to increasing the efficiency of production processes. Jordan is one of those countries that had made substantial progress in implementing new technology in various sectors, which reflected in a positive way on the Jordanian economy. This study aims to identify the effects of technological development on the industrial sector in Jordan during the period (1990-2014), and its role in the development and increase in the volume of industrial production in order to achieve self-sufficiency and providing job opportunities for the unemployed. The analysis used the method of Vector Error Correction Model (VECM) in estimating a function of the Cobb Douglas production. The study concluded that technology has a positive impact on the industrial sector in Jordan, and that the technological capital should be more intensive in the long term.</p>

Bankruptcy Prediction Using Multilayer Perceptron Neural Networks In Jordan

This study attempts to develop bankruptcy prediction model for the Jordanian industrial sector with a recent approach—neural networks. The multilayer perceptron neural network (MPNN) approach was used to develop the bankruptcy prediction model for the Jordanian industrial companies for the period from 2000 to 2015. The samples have been divided into two subsets: the first set for developing or building the model, made up of 14 companies, of which 7 are bankrupt and 7 are non-bankrupt; while the second is a hold-out sample for testing the model, made up of 18 companies, of which 9 are bankrupt and 9 are non-bankrupt. The main variables in predicting bankruptcy were ten financial ratios. The results show that the accuracy rate of final prediction model is found to be 100 percent. While the hold-out sample testing provides that the model correctly predicted all 18 test cases.

DEA window analysis and Malmquist index to assess energy efficiency and productivity in Jordanian industrial sector

This research evaluates the energy efficiency and productivity growth in the industrial sector over the period of 1999 till 2013 using data envelopment analysis (DEA). Two cases are analyzed; in the first case (GVA), the output is the gross value added, whereas two outputs are considered in the second case (GCO), CO2 emission and GVA. Five key input factors are considered in both cases. From DEA window analysis, the technical inefficiency (TIE) values are zeros in windows (2001–2005) till (2003–2007), (2007–2011), and (2008–2012), whereas the pure technical inefficiency (PTIE) values are zeros in windows (1999–2003) till (2003–2007). Finally, the scale inefficiency (SIE) values are zeros in windows (2001–2005) till (2003–2007). These results help policy planners on how to better utilize resources and management efficiency over time and guide operational managers when to increase or decrease the scale. Moreover, the averages of inefficiency values in the GVA case are smaller than their corresponding in the GCO case, which indicates the negative effect of CO2 emission on efficiency. Further, Malmquist index is estimated for three 5-year energy plans. The productivity index is found less than one for the third plan (2009–2013), which indicates a decrease productivity growth. In conclusions, research results provide valuable support when assessing the progress of energy efficiency and productivity in industrial sector.

Statistical Model Representing Workers Turnover Problem in Third Developing Countries: Jordanian Industrial Sector

Jordan as one example of Middle Eastern countries suffers from the problem of workers turnover. This paper analyzed this issue numerically and by building a statistical model to find out the main reasons causing this problem as a first step towards the right solution. Five main categories for workers turnover were studied and investigated. The salary, the working environment, the helpfulness and corporation of the management, the worker psychological state and relationships with surrounding environment, and the services provided by the employer to the employee. Statistical analysis of the results showed that the main reason for turnover in industrial cities is the salary.

Factors that catalyse, facilitate and motivate the decision to implement activity‐based costing in Jordanian industrial companies

PurposeIn spite of facilitating and motivating factors in the external environment, the implementation of new management‐accounting techniques as activity‐based costing (ABC) in companies is disappointing. The aim of the study is to determine factors that catalyse, facilitate and motivate the decision to implement ABC in Jordanian industrial companies. Additional objectives include determining the problems associated with ABC implementation and assessing the degree of success of ABC implementation in Jordan.Design/methodology/approachA sample of the Jordanian industrial companies was selected and a questionnaire survey was employed using a five‐point Likert scale to collect data from the financial managers, descriptive and analytical statistics were used to analyze the collected data.FindingsThe findings indicate that the most important factor that facilitates the decision to implement ABC was the provision of adequate training and the most influential factors which motivate the process of ABC implementation include an increasing proportion of overhead costs, and an increasing number of product variants. Consequently, this study found that the interaction of three types of factors (catalysts, facilitators and motivators) create the potential for change in these companies. Barriers to change could make the change process slower, hindering, and even preventing change; and barriers to change were identified that may explain the differing implementation rates of ABC in the Jordanian industrial sector. The greatest barrier to implementing ABC was found to be its high cost of implementation, followed by the high cost of ABC consultancy and computer staff time.Originality/valueThe study adds new elements to the institutional approach, and integrates it with concepts from psychology and organizational culture, to create a better understanding of management accounting. The results of study contribute to existing knowledge in the area of understanding the factors which act as catalysts, facilitate, and motivate ABC innovation and of those factors that create barriers to ABC implementation in Jordan.

Analysis of the potential use of major refuse-derived fuels in Jordan as supplementary fuel

The increasing energy demand in Jordan, compounded with the country's limited natural resources as well as its dependence on importing fuel oil from neighboring countries, makes it indispensible to search for alternative fuels. The objective of this study is to analyze the potential use of refuse-derived fuel (RDF) as a supplementary fuel in Jordan, for this purpose. Nine of the major RDFs generated in Jordan were chosen for this study: wastewater sludge, oil refinery sludge, olive oil husk, olive oil residue, chicken farm waste, sheep farm waste, used cooking oil, used oil, and waste tires. The energy content was measured for each one and the results were verified using five different empirical elemental analyses. Results of measuring and calculating the higher heating value (HHV) of the samples showed that used oil had the highest potential as an alternative fuel at 45.36 MJ/kg and the residual olive waste had the lowest heating content at 5.02 MJ/kg. Results also showed that there was a good agreement between the measured and calculated values. The calculating models showed that there was a positive correlation between the HHV and C% and negative correlation between HHV and ash%. Further research is planned to be conducted into the implementation of the concept of waste to energy in the Jordanian industrial sector. Implications: It has been necessary to measure the higher heating value (HHV) of different types of RDFs in Jordan to estimate their potential use as supplementary fuels. The amounts generated per year in Jordan are a crucial factor to make it feasible to use these. Used oil, used cooking oil, and waste tires could be the most promising supplementary fuels.

The Effect of the Financial Crisis on the Jordanian Industrial Sector

The International financial crisis caused the recession of the industrial sector in most developed countries. The effect of the crisis in the developing countries was different. This research aimed at investigating the effect of international financial crisis on industrial sector in Jordan. Different financial ratios were estimated using the financial statements of the industrial enterprises for the period 2000-2008. The financial data were classified to two periods. The first period 2000-2005 and 2006-2008 for this purpose. The results show very slight effect on the industrial sector in Jordan results of the limitations of most companies on their activities as a part of risk management policy.

Energy and exergy utilizations of the Jordanian SMEs industries

This study presents detailed analysis of the energy and exergy utilizations of the Jordanian Small-Medium Enterprises (SMEs) by considering the flows of energy and exergy through the main end uses in the Jordanian industrial sector. To achieve this purpose, a survey covering 180 facilities was conducted and energy consumption data was gathered to establish detailed end-use balance for the Jordanian industrial sector. The energy end-use balance provides a starting point to estimate the site and embodied energy and exergy efficiencies. The average site energy and exergy efficiencies of the Jordanian SMEs industries sector are estimated as 78.3% and 37.9% respectively, while the embodied energy and exergy efficiencies are estimated as 58.9% and 21.2% respectively. The low efficiencies values suggest that many opportunities for better industrial energy utilizations still exist.

An Empirical Examination of InterOrganizational Factors Influence on Green Marketing Adoption in Jordanian Industrial Sector

The aim of this research is to examine the factors affecting the adoption of green marketing concept among the industrial manufactures in Jordan. Data were collected from 92 industrial manufactures. Hypotheses were tested using multiple regression. The results indicated that social and environment responsibility have positive relationships with green marketing adoption. Lacks of significant relationships were found between managerial attitude, innovative management and green marketing adoption. These results provide significant managerial implications on how to build and foster the green marketing as an organizational culture and determine what factors should be considered in that regard.