SMEs In Jordan Research Articles

The Effect of Tax Fairness, Peer Influence, and Moral Obligation on Sales Tax Evasion among Jordanian SMEs

Tax evasion remains a complex issue for tax authorities, policymakers, and researchers. While socio-psychological factors have been researched, their impact on tax evasion among SMEs has not yet been determined. This paper empirically analyses the effects of tax fairness, peer influence and moral obligation, on sales tax evasion among Jordanian SME owners/managers. A survey was used to obtain data from three regions of Jordan (north, middle, south). Random sampling was utilized in selecting the prospective respondents from SMEs in three sectors (trade, service, manufacturing). A total of 212 usable questionnaires retrieved from the SMEs were analysed using Smart-PLS 3.0. The results revealed that tax fairness and moral obligation had a significant negative effect on sales tax evasion behaviour among SME owner-managers. On the other hand, peer influence positively and significantly impacted sales tax evasion behaviour. Thus, policymakers and tax authorities should incorporate these factors in developing effective strategies to reduce tax evasion in Jordan, which could result in an improvement in the country’s overall revenue collection. The findings also contribute to the scarcity of literature about the significance of socio-psychological factors in mitigating tax evasion by examining the effects of tax fairness, peer influence, and moral obligation on sales tax evasion.

Cloud-based accounting information systems usage and its impact on Jordanian SMEs’ performance: the post-COVID-19 perspective

PurposeThe purpose of this study is to examine the factors influencing the usage of cloud-based accounting information systems (AIS) in the crisis era (i.e. the COVID-19 pandemic) by expanding the unified theory of acceptance and use of technology (UTAUT) with new related critical factors.Design/methodology/approachA quantitative research approach based on a cross-sectional online questionnaire was used for collecting empirical data from 438 potential and current users of cloud-based AIS. Structural equation modeling based on analysis of a moment structures 25.0 was applied in the data analysis.FindingsThe outcome of the structural path revealed that performance expectancy, social motivation, COVID-19 risk (COV-19 PR) and trust (TR) were significantly influencing users’ behavioral intention (BI) toward using cloud-based AIS and explained 71% of its variance. While, contrary to what is expected, the impact of effort expectancy and perceived security risk (SEC) on BI was insignificant. In addition, BI was revealed to influence the actual usage behaviors and explained 74% of its variance. The outcome factors: communication quality (CQ) and decision quality (DQ) were significantly influenced by the usage of cloud-based AIS.Practical implicationsThe current research would be valuable for small- and medium-sized enterprises officials and policymakers to illustrate the relatively low rates of cloud-based AIS and formulate strategies to boost the acceptance and use of cloud-based AIS by Jordanian users, where cloud-based services are still deemed as an innovation.Originality/valueTo the best of the authors’ knowledge, the current study is the first academic paper that extends the UTAUT by integrating additional factors: TR, SEC and COV-19 PR. In addition to two outcome variables: CQ and DQ, to study the cloud-based AIS in the Jordanian setting beyond the COVID-19 pandemic. The current research contributes to the academic knowledge on information technology information system adoption by considering cloud accounting acceptance and use and integration into the work practices of users through the BIs and actual use of cloud-based AIS in Jordan.

MODERATION OF TRUST IN GOVERNMENT IN MODELLING TAX COMPLIANCE BEHAVIOUR BASED ON TAX FEATURES

of tax revenue, Jordan government is haunted by a high rate of tax non-compliance behaviour that cost around JD1.4 billion in 2017. Thus, revealing the factors that determine the compliance behaviour has become imperative. Therefore, this study investigates the possible factors of tax compliance among SMEs in Jordan with consideration of trust in government as a moderator. The conceptual framework of this study include sales tax compliance behaviour as the dependent variable and the antecedents are tax knowledge, tax fairness, tax morale, tax authority, tax rate, and tax penalties. The population of this study is the small and medium size firms (SMEs) in Amman, Jordan. Approximately 59.9 percent (8,485 firms) of Jordanian SMEs are located in the capital city of Amman and the suitable sample size based on Morgan-Kerjice formula is 373. Unit of analysis for this research is the company principals (owners, CEOs, Financial managers) of the SMEs. The study adopts the direct collect survey technique to reach a relatively specific-target sample of SME principals. For data analysis, SmartPLS is used to do the regression-based analysis, but SPSS is used for data cleaning, demographic and descriptive analysis. Tax fairness has no significant impact while the other five antecedents have significant impacts. The precedence for the relations based on the path coefficient value is tax penalty (0.436), tax rate (0.233), tax authority (0.199), TK (0.142), and tax morale (0.103). Government trust have a significant moderation in two relationships that associated with tax authority and tax rate. KEYWORDS: tax compliance behaviour, tax knowledge, tax fairness, tax morale, tax authority, tax rate, tax penalties, trust in government, Jordan

A Call to Action to Save Jordanian SMEs during the COVID-19 Pandemic

A Call to Action to Save Jordanian SMEs during the COVID-19 Pandemic

Factors Influencing Cloud Computing Adoption Among SMEs: The Jordanian Context

Cloud computing technology has proved to be an important technological solution, especially for small and medium- sized businesses (SMEs), by providing many opportunities for companies to enhance their operations, reduce cost, improve scalability and flexibility, and make more efficient use of technology. Despite its benefits, most SMEs are still hesitant about adopting cloud computing. The purpose of this study is to assess the factors that influence cloud computing adoption among SMEs in Jordan. This study does so by developing a research model based on the Technology Organization Environment (TOE) and Diffusion of Innovation (DOI) .These theories overlap in terms of the characteristics that strengthen the explanation of adoption. An online questionnaire was used to collect data from 244 SMEs registered in Jordan. A multiple regression test was implemented to examine the proposed model. The results indicate that seven factors significantly affect cloud computing adoption among SMEs. Among these factors, cost reduction was found to be the strongest predictor, while the weakest predictor was firm size. However, the firm’s scope insignificantly influenced cloud computing adoption among SMEs in Jordan. This finding could provide insights for SMEs decision- makers when it comes to adopting cloud computing. In addition, it provides insights for practitioners in terms of recognizing the important factors that encourage or prevent SMEs from adopting cloud computing.

Factors Influencing the Adoption of Big Data Analytics in the Digital Transformation Era: Case Study of Jordanian SMEs

Big data (BD) analytics has been increasingly gaining attraction in both practice and theory in light of its opportunities, barriers and expected benefits. In particular, emerging economics view big data analytics as having great importance despite the fact that it has been in a constant struggle with the barriers that prevent its adoption. Thus, this study primarily attempted to determine the drivers of big data analytics in the context of a developing economy, Jordan. The study examined the influence of technological, organizational and environmental factors on big data adoption in the Jordanian SMEs context, using PLS-SEM for the analysis. The empirical results revealed that the relative advantage, complexity, security, top management support, organizational readiness and government support influence the adoption of BD, whilst pressure of competition and compatibility appeared to be of insignificant influence. The findings are expected to contribute to enterprise management and strategic use of data analytics in the present dynamic market environment, for both researcher and practitioner circles concerned with the adoption of big data in developing countries.

Determinants of Tax Compliance Intention among Jordanian SMEs: A Focus on the Theory of Planned Behavior

The present study aimed to adopt the extended theory of planned behavior (TPB) to determine the intentions of owner-managers in SMEs towards engaging in sales tax compliance. The study distributed a total of 660 questionnaire copies through systematic random sampling to the mangers/owners of Jordanian manufacturing SMEs, from which 385 questionnaire copies were retrieved and considered useable and appropriate for further analysis. The study made use of Partial-Least Squares-Structural Equation Modeling (PLS-SEM) for the validation of the measurement model and structural model, and to establish the predictive relevance of the proposed model. Based on the obtained findings, the attitude towards behavior, subjective norms, perceived behavioral control and patriotism were significant determinants of the intentions towards engaging in sales tax compliance among the examined enterprises.

Predicting the use of social media business models: The mediating role of organizational e-readiness

Social media is remarkably growing and shaping not only the lives of individuals but also the business domain by creating new paradigms of business. This study examines the interplay among some selected predicting organizational variables and the use of what are called Social Media Business Models (SMBMs). Furthermore, the study investigates the mediating role of e-readiness on the relationships among these organizational factors and the use of SMBMs. The study is a quantitative, descriptive and analytical study. Using a self-administered survey, primary data were collected from 150 employees from the Jordanian SMEs. Smart PLS 3 software was employed to validate the proposed study model using a Structural Equation Modelling (SEM). The findings confirmed that compatibility, innovativeness, cultural and management support, and e-readiness have a statistically significant direct impact on the use of SMBMs. Finally, the study confirms that e-readiness mediates the relationship between compatibility and innovativeness as predicting variables and the use of SMBMs.

A study on the relationship between supply chain integration and firm performance

This study aims to develop a measurement scale for Supply Chain Integration (SCI) and Firm Performance (FP) in Jordanian SMEs. The study instrument was developed based on the previous studies and the survey included 284 companies in Jordan. A sample of 263 responses were used for exploratory analysis. Results show that the 46-item instrument was loaded on four factors. During this phase, the measurement scale was purified to 36 items, and characterized with a high degree of reliability. The results were confirmed using confirmatory factor analysis and showed that the 36-item measurement model met the empirical requirements namely, convergent, construct, and discriminant validity. The fitness indicators test for the model shows that it is applicable in SMEs companies’ environment in Jordan. The study presented implications for decision-makers in SMEs companies. The limitation of this study was presented which were relied on to develop directions for future research.

Factors that influence employees' acceptance of e-accounting: evidences from Jordanian SMEs

Factors that influence employees' acceptance of e-accounting: evidences from Jordanian SMEs

Factors Affecting the Adoption of Cloud-Based Human Resource Management on Innovation Behaviour among SMEs in Jordan

Innovative behaviour is attracted research interest. The research draws on Theory of Planned Behaviour (TPB) and Diffusion of Innovation (DOI) frameworks to examine the impacts of technology factors and intention to adopt Cloud-based Human Resource Management Systems on innovative behaviour. The mediating variable of intention to adopt Cloud-based HRMS was examined. Data were collected and analysed from 366 full-time employees who are working within the information and communication sector in SMEs in Jordan. The outputs from smart partial least square (SmartPLS) analysis reveal that technology factors effects intention to adopt Cloud-based HRMS, which consequently affects innovative behaviour. Whereas, leadership support was found to play a significant role in the relationship between intention to adopt Cloud-based HRMS and innovative behaviour, it has a positive effect. These results provide the relevance of the technological factor on how to foster innovative behaviors through intention to adopt Cloud-based HRMS and leadership support.

Social media usage and innovation performance: the case of fashion SMEs in Jordan

ABSTRACT This study aims to analyze the impact of using leading social media platforms (SMPs) on the innovation performance of the fashion SMEs in Jordan. A theoretical model has been developed and validated empirically using a survey of 217 fashion SMEs. The results highlight the positive significant impact of SMPs’ usage on the innovation performance. This research has distinctly contributed to the existing literature by considering the SMPs’ usage in the context of developing fashion SMEs, thereby contributing to filling a literature gap. Finally, research limitations, managerial implications, and future research suggestions are presented.

A study of employees at SMEs in Jordan shows employee engagement fully mediates the relationship between HPWS and employee creativity

Purpose The author said his study suggested a unique mechanism for the link between HPWS and organizational innovation and also filled a gap in existing research. Previous studies have tended to concentrate on outcomes at the organizational level rather than individual level. Design/methodology/approach The author sent the questionnaire to employees at R&D centers, where employees are expected to produce a lot of creative ideas. Each organization in the study had a maximum of three employees responsible for R&D. In total, 272 complete questionnaires were collected from 159 SMEs in Amman, in Jordan. Findings The study confirmed that employee engagement fully mediates the relationship between HPWS (high-performance work systems) and employee creativity. Results showed it accounted for 69.5% of the variance. The author of the report also revealed that perspective-taking also moderated the relationship between HPWS and employee engagement, and employee creativity predicted organizational innovation to moderate levels. Originality/value The positive results of the study have theoretical implications, the author argues. It proposed a causal mechanism of mediation, which was an original contribution. And it also focused on individuals, whereas other studies have tended to concentrate on outcomes at the organizational level. Management must also take into account the vital role HPWS play in shaping creativity and engagement. On the other hand, training can’t be offered for the sake of it, but in order to influence the employee’s view of the organization.

Factors influencing e-business adoption by Jordanian SMEs

Factors influencing e-business adoption by Jordanian SMEs

Enhancing business entrepreneurship through open government data

Small and medium enterprises play a very important role in today’s economy and contribute heavily on a national economy specially in developing countries like Jordan, but they are still facing many challenges, and need support from government specially in data availability. This study aimed to know the impact of open government data (OGD) on business entrepreneur-ship from Jordanian Irbid State entrepreneurs’ point view. To achieve this, (600) questionnaires were distributed to the sample of Jordanian entrepreneurs in Irbid state and (536) valid questionnaires were recovered. The study indicates that OGD and entrepreneurship had a moderate level. There is a significant statistical effect of OGD on business entrepreneurship (α ≤ 0.05) in Jordanian SMEs Irbid state. At the end researchers recommend government and entrepreneurs to adopt OGD as a strategy to maximize benefits gained from open government data strategy, improve the quality of published data, and recommended entrepreneurs to increase the level of relying on OGD to get information about materials, markets, competitors, legislations and so on to get benefits for their companies.

Developing Items for Organizational Culture among SMES in Jordan: An Exploratory Factor Analysis

Developing Items for Organizational Culture among SMES in Jordan: An Exploratory Factor Analysis

REVIEW PAPER: THE MEDIATING ROLE OF CREATIVITY ON THE RELATIONSHIP BETWEEN KNOWLEDGE MANAGEMENT AND HUMAN RESOURCE MANAGEMENT TOWARD INNOVATION PERFORMANCE IN THE JORDANIAN SMES

This study aims to review around 100 previous studies in the SMEs in Jordan. The economic revolution at the current moment is relying on the SMEs industry to handle the crucial business in the countries. The main concern of this study is the innovation performance in the SMEs in Jordan, which is a need to compete in the current competitive business world nowadays. This study found the innovation performance is needed in the SMEs in Jordan. The study found human resource management, knowledge management, and creativity are among the variables that must be included toward the prosperity of the industry to be able to assist the country’s economy. Moreover, there is a relationship found between activating the role of human resource management on the intellectual capital, creativity, and innovation in the Jordanian SMEs.

Lean bundles within Jordanian manufacturing SMEs and their effect on business performance

Maximizing customer value and minimizing waste have become the heart of the formulation of SMEs in the manufacturing sector of Jordan to survive in the new global marketplace. Therefore, lean manufacturing philosophy is used in SMEs to improve performance regarding quality, delivery, and costs to become efficiently competitive, thus accomplishing sustainable economic growth. The current study was designed to analyze the extent to which lean management bundles are adopted by SMEs manufacturing organizations in Jordan and the effect on their performance. Data were collected from 278 manufacturing SMEs in Jordan based on a structured questionnaire. The theoretical relationships were examined using structural equation modeling. The results show that Total Quality Management (TQM) and Human Resources Management (HRM) lean bundles are positively associated with manufacturing SMEs’ performance. The outcomes of this study may be considered as incentives for other practitioners and entrepreneurs of SMEs when implementing lean bundles by acknowledging the positive effect on their performance. Moreover, the findings of this study could be used in an internal checklist before and during the implementation of Lean Manufacturing (LM).

Can high-performance work systems (HPWS) promote organisational innovation? Employee perspective-taking, engagement and creativity in a moderated mediation model

PurposeReviewing Human Resource Management (HRM) and innovation literature, an identified gap exists in the mechanism in which the association between HRM and innovation is happen. To respond, the current study has suggested a moderated mediated mechanism to explain the link between HRM, through its new High Performance Work Systems (HPWS) and organisational innovation, as employee engagement mediates the relationship between HPWS and employee creativity. Then later one has subsequent influence on organisational innovation; moreover, the model also considers the moderating role of employee perspective-taking between HPWS and employee engagement.Design/methodology/approachA quantitative-deductive causal method, along with a cross-sectional approach was adopted, and SMEs in Jordan were the focus for the present study, through targeting employees in Research and Development centres. Data were collected through a self-administered questionnaire answered by 272 employees and Structural Equation Modelling using SMART-PLS was used for the statistical analysis.FindingsThe results confirmed that employee engagement fully mediated the relationship between HPWS and employee creativity and accounted for 69.5% of the variance; additionally, perspective-taking as a moderator of the relationship between HPWS and employee engagement was confirmed. Moreover, employee creativity significantly predicted organisational innovation to moderate levels.Originality/valueThe study suggested a unique mechanism for the link between HPWS and organisational innovation, contributing to the suggested gap that could have numerous variables acting as mediators or moderators which require further investigation to explore other possible mechanisms.

The Influence of Tax Complexity on Sales Tax Compliance among Jordanian SMEs

The Influence of Tax Complexity on Sales Tax Compliance among Jordanian SMEs