Jordanian Companies Research Articles

The impact of marketing information systems on the competitive advantage of Jordanian pharmaceutical companies

This study aimed to identify the effect of marketing information systems on the competitive advantage of pharmaceutical companies in Jordan. The study community and its sample were represented by all the employees in the Jordanian pharmaceutical companies which consisted of (400) employees who were chosen in a simple random manner. To achieve the objective of the study, the analytical descriptive method was used. After conducting the statistical analysis, the study concluded the following: There is a statistically significant relation between internal records, marketing research, marketing intelligence and competitive advantage in Jordanian pharmaceutical companies. Based on previous findings, the study recommends the following: The Company has to rely on many sources of marketing intelligence in the recruitment centers, employees and of the competing companies. Pharmaceutical companies should follow customer services through periodic reports on customer feedback, complaints and satisfaction with service performance.

Examining the Impact of E-Governance on the Performance of Corporations: A Case Study of Companies in Jordan

Examining the Impact of E-Governance on the Performance of Corporations: A Case Study of Companies in Jordan

The Impact of Lean Thinking on Strategic Planning in Industrial Companies in Jordan from the Upper and Middle Management: A Perspective Study

The Impact of Lean Thinking on Strategic Planning in Industrial Companies in Jordan from the Upper and Middle Management: A Perspective Study

Impact of earnings components on future profitability of banking and insurance companies in Jordan

This study aimed to examine the impact of a firm’s total accruals and operating cash flows on future profitability (one-year-ahead ROA) using a static model on unbalanced panel data for all the (15) banks and (18) insurance companies listed on the Amman Stock Exchange from 2002 to 2019. The final sample of the study, for analysis, consisted of 280 observations taken from the banking sector and 410 observations from the insurance sector. The pooled sample of banks’ observations showed no significant impact of a firm’s total accruals and operating cash flows on one-year-ahead ROA. This result is consistent with previous studies’ results, which are still under debate, especially in developed countries. The investors of the Jordanian banks are not counting on the accrual earnings components, which are affected by the different estimation procedures of GAAP and managerial discretion. The pooled sample of the insurance companies’ observations showed a significant impact of a firm’s total accruals and operating cash flows on one-year-ahead ROA. The result showed a higher variable value of a firm’s operating cash flow than the firm’s total accruals for the pooled sample of insurance companies. This result indicates a more incrementally negative relation between the growth in operating assets and a one-year-ahead ROA in addition to the probable impact of the lower rate of economic profits and the conservative bias in accounting.

How Company Characteristics Influence Measurement Practices and Disclosure Level Prescribed within IAS 41

This research paper describes the accounting practices of Jordanian companies engaged in agricultural activities, and identifies the influence of company characteristics on measurement practices related to asset pricing and level of disclosure required by IAS 41. Company characteristics were considered as: size, intensity of biological assets (BA), level of international activities, and audit for the Big Four. Dependent variables were considered measurement practices related to valuing BA as well as resultant harvest and disclosure level, the latter being measured by mandatory and voluntary disclosures. The entire population of companies that include one or more agricultural activities in their purposes and are considered reporting companies formed the research sample, giving a total of 259 companies. The findings revealed that both intensity of BA and level of international activities have a positive impact on measurement practices. Audit for the Big Four was the strongest variable influence, the overall disclosure level prescribed by IAS 41, followed by the level of international activities variable. However, the intensity of the BA variable affects only the overall disclosure level for companies that measure their BA based on the cost method. Firm size was found to have no influence on either measurement practices or disclosure level. The key value of this paper is its examination of the role of company characteristics on measurement practices and level of disclosure required by IAS 41 in the context of Jordanian companies. Through this examination, this study is helpful to standards setters and regulators who obligate and issue the financial regulation and reporting standards at a national or international level, supporting their understanding of measurement and disclosure practices adopted in agricultural companies in the developing country context of Jordan.

The impact of earnings quality on corporate cash holdings: evidence from an emerging economy

Purpose This study aims to inspect the impact of earnings quality on corporate cash holdings of Jordanian companies listed on the Amman Stock Exchange. Design/methodology/approach This study examines a large sample of (98) Jordanian companies listed on the Amman Stock Exchange during the period that ranges from 2009 to 2019. Earnings quality was computed using two different methods; firstly, through the absolute abnormal discretionary accruals (as an inverse measure of earnings quality), which were estimated using the Dechow et al.’s (1995) cross-sectional version of the Modified Jones model and the Kothari et al. (2005) model; and secondly, through earnings persistence as a direct measure of earnings quality. Findings The empirical results of this study reveal that poor accounting quality (high levels of abnormal discretionary accruals) is associated with higher levels of cash holdings, implying that as the quality of earnings decreases, the harmful effects of information asymmetry and adverse selection costs will increase, leading, therefore, Jordanian companies to increase their corporate cash holdings levels to act as a buffer against any cash shortages. Further, the authors document that higher accounting quality (more persistent earnings) is associated with lower levels of cash holdings. In addition, this study found that earnings quality negatively and significantly affects the cash holdings of profitable companies in Jordan. Thus, earnings quality appeared to be a significant determinant of cash holdings for profit-making companies but not for companies enduring losses. Originality/value This study contributes to the limited evidence that investigates the relationship between earnings quality and corporate cash holdings. Where the majority of previous studies have focused on developed economies, to the best of the authors’ knowledge, this study is the first in Jordan to comprehensively explore the relationship between earnings quality, computed by the absolute abnormal discretionary accruals and earnings persistence, and corporate cash holdings. Also, it is the first to explore the nature of the earnings quality-cash holding nexus in loss-making companies compared with their profit-making counterparts to the best of the authors’ knowledge. The results of this study have important policy implications for managers, creditors, investors and academics in Jordan and other emerging economies that share similar characteristics.

Factors Affecting Risk Management in Industrial Companies in Jordan

This study aims to identify and rank the critical factors affecting risk management from the perspective of top and Lower Management in Jordanian industrial companies. Based on a rigorous literature review, critical factors affecting risk management are factors related to (1) flexibility and adaptation in the economic environment; (2) company characteristics; (3) external audit quality; (4) government rules and regulations; (5) top management and the board of directors; (6) organizational structure; (7) internal audit effectiveness; (8) trust; (9) human resources efficiency and training (10); communications (11); information technology (12); and the company’s culture. Quantitative research methods were used. A questionnaire was developed and distributed to a random sample of senior managers of industrial companies in Jordan. Kendall and Mann–Whitney tests, RII, and EFA were used to analyze the acquired data. The results show that all discussed factors have an effect on risk management, and there is no difference between top and Lower Management’s opinions regarding the ranking of the importance of those factors on risk management. This study provides an original perspective on the concept of risk management and the factors that impact it. These findings have important implications for Jordanian industrial companies’ decision makers. Companies should apply the results to their strategies and policies to reduce risks.

The value relevance of accounting information: empirical evidence from Jordan

PurposeThis empirical study’s primary goal is to examine the connection between accounting information and share price for financial companies listed on Jordan’s expanding Amman Stock Exchange (ASE) between 2014 and 2018.Design/methodology/approachThe correlation between accounting data and share price was investigated using multiple regression analysis. In this vein, “pooled ordinary least squares (OLS), fixed effect and random effect” static panel data estimators were used. The OLS model was chosen as the best model after a series of diagnostic tests.FindingsThe multiple proxies of accounting information value relevance have a positive and considerable impact on the market value per share, according to panel data research. Comparatively, the authors find proof that among the other accounting data – earnings, dividends and cash flow from operations – book value is statistically the most value-relevant.Research limitations/implicationsThis empirical investigation was only conducted in Jordan. Because it is very likely to obtain different results in other nations, the findings cannot be applied to other business environments.Practical implicationsThe findings of this paper may highlight the amazing relationship between accounting information and share price for policymakers, regulators and other stakeholders in developing nations, notably in Jordan. This could pave the way for effective accounting disclosures.Originality/valueSeldom does empirical research on the relationship between accounting data and share prices from publicly traded companies on ASE exist. So, by demonstrating empirical findings from Jordanian companies, this study fills the gap in the existing literature and knowledge.

The Impact of Audit Quality on Firm Performance: the Moderating Role of Ownership Concentration

Purpose: The main objectives of this research were to study the direct relationship between audit quality (AQ) and the performance of non-financial Jordanian companies and to look into how ownership concentration affects this relationship. Theoretical framework: This research focuses on AQ, FP, and ownership concentration. Ownership concentration moderates the relationship between AQ and FP, according to the framework. Audit fees are used to evaluate AQ and lend credibility to financial reports, protecting shareholders' interests. Design/methodology/approach: The study was conducted on public companies listed on the Stock Exchange of Amman (ASE) in the services and industry sectors, with a total of 92 firms, from 2014 to 2018. The data analysis method used was partial least squares structural equation modelling (PLS-SEM). Findings: The study's findings suggest that AQ is positively linked to FP, and ownership concentration has a positive and significant effect on FP. Additionally, the moderating influence of ownership concentration confirms that AQ has a statistically significant impact on FP. Research, Practical & Social implications: The result of this article helps firm managers, regulatory agencies, and market participants on the ASE, as well as nations with highly concentrated ownership and policymakers, understand governance. Originality/value: This study is one of the first papers in the Jordanian context to address the role of moderating the effect of ownership concentration between AC and FP.

The role of sticky cost behavior in supply chain management: Evidence from Jordan

This study aims to examine the relationship between sticky cost behavior and supply chain management of Jordanian manufacturing firms. The data are collected using a questionnaire targeting 25 Jordanian manufacturing firms. The data were analyzed using multiple regression analysis and correlation. The results reveal a positive relationship between supply chain management and sticky cost behavior (the correlation factor is 81.2%), indicating that the higher the level of sticky costs, the higher the supply chain management level. Moreover, the study found a positive and significant link between target costing and supply chain management (the correlation factor is 68.1%). The findings suggest that manufacturing companies in Jordan should consider the impact of sticky cost behavior on their supply chain management practices and that target costing can be an effective approach to improve supply chain management. The study adds to the previous studies on cost behavior and supply chain management, providing insights for manufacturing companies in Jordan and beyond on improving their supply chain management practices. Acknowledgment I want to thank Amman Arab University for funding this study.

Realistic performance evaluation and optimal energy management of a large-scale bifacial photovoltaic system

This paper introduces an optimal energy management and a comprehensive innovative comparison between on-grid monofacial and bifacial solar photovoltaic systems in terms of energy production, reliability, economic feasibility, ecological impact, footprint area, and other performance indicators. This is to satisfy the load demand of Al-Husainya city, Jordan. Realistic measured data are obtained from authoritative companies in Jordan. This includes ambient temperature, solar irradiance, and a utility-scale load demand. The optimal sizing and energy management strategy are achieved using Marine Predators optimization algorithm. This is done by minimizing Loss of Power Supply Probability. The decision variable is the number of photovoltaic modules. The unit investigation shows that the maximum power of the bifacial panel is increased compared with a monofacial module. So, this will highly affect system size and hence reliability, footprint required area, cost and ecological indicators are impacted too. Results show that the minimized values of the objective function of Loss of Power Supply Probability for monofacial and bifacial systems are 0.3534 % and 0.2511 %, respectively. The number of monofacial and bifacial panels are 12,940 and 11,584 respectively. In addition, the area required to install the bifacial array is decreased by 10.4791 % compared with the monofacial array. Finally, four additional optimization algorithms were used to validate and compare with the obtained results using the Marine Predators algorithm. The methodology described in this paper, which adopts the bifacial photovoltaic technology, is recommended and it can be applied anywhere to get highly reliable, feasible, and more environmentally friendly solar energy systems.

COVID-19 Pandemic and Financial Performance

Purpose: This study aims to illustrate the impact of the corona pandemic (COVID-19) on the financial performance in industrial companies in Jordan. Theoretical framework: This study depend on review of literature review to determine variables of study and its relationship, has been determined all variables: corona pandemic (COVID-19) is independent variable, dependent variables was divide into three axes: profitability, liquidity and debts each of them was measure by some financial ratios that its will show later in hypotheses. Design/Methodology/Approach: The study was applied on 16 industrial companies in Jordan, their quarterly financial statements were collected from Amman’s stock exchange from the first quarter of the year 2017 to the end of the third quarter of the year 2021. Finding: It concluded to the fact that there is a negative impact on profitability reflected by the corona pandemic (COVID-19), and another positive impact on debts, and has no impact on the liquidity. Research, Practical & Social implications: The implication drawn from this study is that it show to researchers and interested of investment, that causes it corona pandemic (COVID-19) impact on performance of companies listed on important sector in Jordan is industrial Sector, which is represented 60% from all investments. Originality/value: The value of the study's originality in the past two years is the world was invaded by a new disease called Corona (COVID-19), and the disease enforced some changes on companies activities and performances it due to the closure works of companies.

The impact of digital corporate social responsibility on social entrepreneurship and organizational resilience

PurposeThis study examines the impact of digital corporate social responsibility (CSR) on social entrepreneurship, organizational resilience and competitive intelligence during the coronavirus disease 2019 (COVID-19) crisis. It also examines the impact of competitive intelligence on social entrepreneurship and organizational resilience.Design/methodology/approachData were collected from telecommunication companies in Jordan with a sample of 223 managers, using Smart-PLS for analysis and testing the research model and hypotheses.FindingsThe results reveal a significant impact of digital CSR on social entrepreneurship. They show that digital CSR significantly impacts organizational resilience. The findings also indicate a significant role of digital CSR in competitive intelligence. This study shows that social entrepreneurship significantly impacts organizational resilience. The results also confirm the impact of competitive intelligence on social entrepreneurship. Finally, the results confirm that competitive intelligence significantly impacts organizational resilience.Originality/valueThis study provides valuable academic and practical insights into digital CSR practices, social entrepreneurship and how to support organizational resilience during crises.

The Effects of the Use of 3D Printing Technology on the Entrepreneurs’ Operational Effectiveness

This paper examines the effects of the use of 3D Printing Technology (3DPT) applications on entrepreneurs’ operational effectiveness. For this purpose, a study model based on the relevant previous studies was proposed. The data for this research was collected using a self-administered questionnaire given to 161 respondents. The target respondents were those employed in entrepreneurial companies in Jordan and the data was analyzed using simple and multiple regression techniques.
 The findings indicate that the extent of 3DPT being used by entrepreneurial companies in Jordan was considered to be moderate at this stage and it varied among them in terms of their size and business experience. Further, all integrated effectiveness indicators (time, cost, quality, competitiveness and management processes) were significantly influenced by the level of the use of 3DPT; the most important effectiveness indicators were found to be time, cost and quality due to the business environment context found in Jordan.

Prioritization of Supply Chain Capabilities Using the FAHP Technique

With the great challenges that the latest pandemic (COVID-19) has imposed on manufacturing companies, the need to overcome and cope with such situations is becoming crucial. Supply chain resilience is one of the main aspects that enables manufacturers to cope with change and uncertainty; therefore, it is essential to develop the capabilities necessary to do so. This study aimed to ensure supply chain resilience in light of the COVID-19 pandemic through prioritizing main supply chain capabilities. After surveying (30) experts in supply chain from leading manufacturing companies in Jordan, a Fuzzy Analytic Hierarchy Process (FAHP) analysis was conducted to prioritize main supply chain capabilities that were derived from the related literature. The results of this study showed that proactive capabilities, followed by reactive capabilities, were the most dominant capabilities that could ensure supply chain resilience, while efficiency-based capabilities were the least significant. Therefore, manufacturing companies should place their focus and emphasis on reacting to this pandemic in a more systematic manner.

Investigating the Influence of Chief Executive Officer Characteristics on Accounting Software Technology Use among Jordanian Firms

This study aims to examine the influence of chief executive officer (CEO) characteristics (i.e., CEO innovativeness, CEO information system (IS) knowledge, and CEO trust in technology) on accounting software technology use in Jordanian companies from different industrial sectors. Data were gathered through a structured questionnaire distributed to CEOs/owners of small, medium, and large companies in Jordan. The Partial Least Squares Structural Equation Modeling (PLS-SEM) technique was employed on 315 usable questionnaires received. The finding reveals that CEO IS knowledge and CEO trust in technology have a significant positive impact on accounting software use. Surprisingly, CEO innovativeness has an insignificant impact on accounting software use due to the prevalence of avoiding uncertainties in undertaking a new system. The outcomes of this study can assist the government in devising relevant policies and support initiatives to encourage firms to adopt accounting software technology. Similarly, CEOs can benefit significantly from gaining a deeper understanding of the principal factors influencing accounting software use.

Hierarchical hybrid simulation optimization of the pharmaceutical supply chain

In this paper, a global simulation optimization approach is developed to imitate and optimize the performance of the Pharmaceutical Supply Chain (PSC). Firstly, a hierarchical hybrid simulation model is developed in which aggregate and detailed data levels are addressed simultaneously. The model consists of two types of interdependent paradigms: the system dynamics paradigm, which depicts the echelons of pharmacies and wholesalers in the PSC, and the discrete event paradigm, which simulates the manufacturers with their detailed production operations, as well as the echelons of suppliers. Secondly, the "As is" scenario analysis and a screening process are performed to extract significant input parameters as well as sensitive outputs of the model. The final step optimizes the performance of PSC. The proposed approach validity is appraised by being applied to the PSC of a leading pharmaceutical company in Jordan. As a result, the opportunity loss cost has considerably decreased for both the manufacturer and wholesalers’ echelons and the service level has improved throughout the PSC.

The CSR‐19 scale: A measure of corporate social responsibility actions during COVID‐19 pandemic

AbstractIn this article, I developed the CSR‐19 scale to assess the perceptions company executives have of CSR actions during the COVID‐19 pandemic and to conceptualize the economic, legal, social, and environmental aspects of CSR actions as a high‐order construct. This paper's findings suggest that the legal, environmental, and social aspects of CSR actions are being perceived to positively contribute to companies' CSR actions, but the economic aspect of CSR actions is deemed to contribute negatively to companies' CSR actions. The 16‐item CSR‐19 scale shows strong evidence of reliability as well as content, convergent, and discriminant validity in a sample of 211 Jordanian companies. Managerial implications and suggestions for applying the CSR‐19 scale in future research are presented.

Exploring the Challenges and Opportunities of Implementing Industry 4.0 in Jordan: Public Shareholding Manufacturing Companies Perspective

Industry 4.0 (the fourth industrial revolution) involves swift and ongoing technological changes affecting industries and societies because of advanced automation, communication and data exchange, and global connectivity. While its implementation is necessary for organizational success in the face of international competition, many challenges arise with its opportunities. This research is an investigation of the challenges (employee qualification, employee acceptance, organizational, and production fit) and opportunities (strategic, operational, environmental, and social) in the implementation of Industry 4.0 in public shareholding manufacturing companies in Jordan. A questionnaire-based approach for primary data collection with analysis via Smart-PLS was taken. The results revealed that organizational and production fit challenges, strategic opportunities, operational opportunities, and environmental and social opportunities are positively associated with Industry 4.0 implementation, while employee qualification and acceptance challenges are negatively associated. The study explained that there is not enough knowledge about Industry 4.0. This study offers guidance for establishing regulations related to Industry 4.0 implementation by removing challenges and adopting opportunities. Also, this study is an approach for further research about the development of communications in Jordan and global connectivity.

Investigating the factors affecting the intention to adopt cloud-based ERP systems during the COVID-19 era: evidence from Jordan

PurposeGenerally, the use of cloud-based services has proliferated all around the world. This tendency increased dramatically during the coronavirus disease 2019 (COVID-19) pandemic when many people were obliged to conduct business remotely. This research study aims to investigate the intentions to adopt (IA) cloud-based enterprise resource planning (ERP) systems in Jordan, as this sort of research is scarce in developing countries. Specifically, this research study combined the model of Diffusion of Innovation (DOI) and the Technology-Organization-Environment (TOE) framework, in addition to looking at COVID-19 as a moderating variable.Design/methodology/approachData were collected from 60 participants working in Jordanian companies that currently use, or have the intention to use, cloud-based ERP systems. An online questionnaire was developed and used to collect responses. The study hypotheses were examined statistically using simple regression analysis and hierarchical multiple regression.FindingsThe study results clearly indicate that complexity, observability, employee information technology (IT) skills, organizational culture (OC) and top management support significantly affect the intention to adopt cloud-based ERP systems. In contrast, relative advantage (RA), compatibility, trialability, regulatory environment and competitive pressure had no significant effect on adoption intention. Interestingly, the advent of COVID-19 increased the intention to adopt cloud-based ERP systems.Research limitations/implicationsThe study's findings will provide theoretical and practical suggestions for the effective adoption of cloud ERP in Jordan, as well as aiding other developing nations in comparable situations in implementing cloud-based ERP systems.Originality/valueThe study enriches the knowledge and further examines the underlying reasons for adopting cloud-based ERP systems in a developing country.