Search Results (11)

This study explores the impact of cybersecurity practices on supply chain performance in the Jordanian banking sector. A survey was used to obtain data from managers and customers. Data from 40 managers’ and 250 digital banking customers’ surveys were collected, of which 220 were valid to be analyzed using IBM SPSS V26 and PLS-SEM V4; 30 responses were excluded due to invalidity issues such as zero standard deviation and outliers identified using Cook’s distance. This study empirically demonstrates the significant positive impact of cybersecurity practices on Jordanian banking supply chain performance. Specifically, the confidentiality, integrity, and availability dimensions strongly correlate with the banks’ supply chain performance. The results indicate that managers have a high degree of cybersecurity awareness and implementation, emphasizing the significance of regular cybersecurity practice training and discussions. Customers desired improved communication and explanation on cybersecurity issues from their banks despite being generally satisfied with cybersecurity. This study’s significant contribution lies in identifying the actual levels of cybersecurity practices and supply chain performance in the Jordanian banking sector and their interaction from both managers’ and customers’ perspectives. Future investigations into the long-term impacts of cybersecurity investments and the comparative examination of cybersecurity methods across other sectors or locations would benefit greatly from this research’s insightful findings. Practically, the results highlight the value of investing in cutting-edge cybersecurity measures, training staff, and effectively explaining procedures and protocols to clients. All of these measures together improve efficiency, trust, and collaboration throughout the banking supply chain. Full article

Dynamic environmental changes continue to impact organizations’ performance and goals, prompting them to adapt and develop strategies that foster innovation continually. Thus, HRMS enables talented, retaining skilled, and innovative employees who contribute with creative ideas and creative problem-solving problems to enhance innovation practices in organizations. Therefore, the findings of previous studies are insufficient and considered as empirical evidence to investigate the research constructs relationship. This study aims to examine the gap in strategic adaptability via HRM strategies and innovation in Jordanian banks. The study employs data analysis and hypotheses testing, descriptive analysis approach, and (SEM) structural equation modeling through SPSS-24 and PLS-SEM-4 software. The research population includes 16 Jordanian banks, and a stratified sampling method conducted on 468 respondents resulted in 455 completed ones, the respondents are middle level managers and department heads. The findings reveal a positive significant impact of HRMS and innovation (INN), a significant positive impact of HRMS and strategic adaptability (SA), and a significant positive effect between strategic adaptability (SA) and innovation (INN). In addition, the findings indicate a partial indirect relationship effect between strategic adaptability (SA) via HRMS and innovation (INN). The conclusion shows that the bank’s performance is highly improved by strategic adaptability, which allows the bank to quickly respond to local and global environmental changes, challenges, crises, and market trends, and provides valuable theoretical and practical insights regarding the role of strategic adaptability (SA) relationship between HRM strategies (HRMS) and innovation (INN). These findings are relevant to the global banking sector due to the similar operating conditions and environments. Moreover, a better understanding of these relationships by practitioners and researchers for future studies in different environments, and sectors. Full article

Whilst research on Wasta has been improving in quantity and quality, there is still much more to know about the interactions between the different parties in Wasta transactions, the role of power in this process and how it impacts HR functions. As such, this research aims to address this gap by exploring the use of Wasta in human resources (HR) functions, drawing on 17 semi-structured interviews with HR, recruitment and line managers working in the Jordanian banking sector. This paper focuses on the roles of trust and power in the organizational transactions in which Wasta is positioned and identifies recruitment and selection (R&S) as one of the main human resource (HR) practices and procedures that are affected by Wasta. The findings shed light on the impact of Wasta on HRM practice on the micro and macro levels, highlighting the complex socio-economic needs for this practice which, whilst they might be beneficial on the micro level in terms of securing employment for job seekers and benefits for organizations in the Wasta exchange process, can also have some substantive negative outcomes in the forms of social and economic exclusion of others outside the Wasta network. By doing so, it develops the conceptualization beyond the often-simplistic view of Wasta as a negative (and sometimes positive) practice as viewed by previous research extending it to a practice that could have either impact on different stakeholders. Full article

This comprehensive study explored the efficiency landscape of the Jordanian banking industry from 2006 to 2021, utilizing a dual-pronged approach. First, we assessed the efficiency scores of 15 commercial banks, comprising 13 conventional and 2 Islamic institutions, through data envelopment analysis (DEA). Secondly, we investigated the determinants influencing relative efficiency using the Tobit regression model. Our dataset, spanning 240 observations over 16 years, provides a nuanced examination of industry dynamics. DEA, specifically focusing on variable return to scale (VRS), unveils efficiency scores by accounting for scale inefficiencies. The research contributes insights into the operational efficacy of Jordanian banks and provides a robust methodology for understanding efficiency dynamics in the broader financial landscape. The results reveal significant relationships between return on assets, return on equity, GDP growth, and efficiency. Furthermore, it is noteworthy that Islamic banks demonstrate higher efficiency compared to conventional banks. Additionally, non-significant associations were observed with credit risk, bank size, and the ratio of loan loss provision over net income. The findings hold implications for policymakers, industry stakeholders, and researchers aiming to bolster the resilience and competitiveness of Jordan’s banking sector. Full article

This paper presents a comprehensive analysis of key financial indicators influencing the operational efficiency of banks in Jordan over the period 2006 to 2021. The study, focusing on fifteen commercial banks, employs seven regression models to assess the impact of selected variables on bank operating efficiency. Our findings reveal novel insights with substantial contributions to banking practice. We identify a statistically significant influence of both bank-specific factors and temporal effects, demonstrating the nuanced dynamics shaping the operational efficiency of Jordanian banks. Notably, a positive and significant correlation is established between the operating efficiency ratio and return on assets, bank size, and the ratio of loan loss provisions to net interest income, providing valuable strategic guidance for effective management. Conversely, a significant negative relationship is observed between the operating efficiency ratio and the total expense ratio, underscoring the critical importance of careful cost management. No significant associations are found between the operating efficiency ratio and credit risk, the equity-to-asset ratio, the deposit-to-liability ratio, and the equity-to-liability ratio. This study makes a unique contribution by shedding light on these previously unexplored correlations, offering actionable insights for enhancing operational efficiency in the banking sector. Additionally, our research advocates for the Central Bank of Jordan (CBJ) to persist in adaptive policy measures, which are crucial for ongoing banking reforms and improved monitoring practices. Based on our empirical findings, these recommendations aim to fortify the resilience and adaptability of Jordan’s banking sector, contributing both academically and practically. Importantly, they reinforce the symbiotic link between a stable banking sector and sustained economic development in Jordan. Full article

This research will examine the impact of the adoption of financial technology on conventional banks’ financial performances. The research will place emphasis on the listed commercial banks at Amman Stock Exchange—ASE, using financial data for the period 2012–2020. The main study tool was a questionnaire that focuses on three main dimensions: financial inclusion—(FI), alternative payment methods—(APMs) and automation—(Auto). A total of 115 questionnaires were distributed to all commercial banks listed at Amman Stock Exchange—ASE. Multivariate regression analysis was employed to test the impact of the FinTech dimension as a proxy for independent variables on Jordanian commercial bank’s financial performance as a proxy for dependent variables. Based on the analysis results, the study concludes that all three FinTech dimensions: FI, APMs and Auto. reflected a positive significant impact on Jordanian commercial bank’s financial performance indicators (total deposit, total loans and net profit margin). Therefore, banks in general should invest more and more into financial technology tools and applications, in order to recruit potential clients and retain their current clients, to be able to sustain under fierce competition within the banking sector. Full article

This study determines to what extent Jordanian banks refer to and use artificial intelligence (AI) technologies in their operation process and examines the impact of AI-related terms disclosure on financial performance. Content analysis is used to analyze the spread of AI and related information in the annual report textual data. Based on content analysis and regression analysis of data from 115 annual reports for 15 Jordanian banks listed in the Amman Stock Exchange for the period 2014 to 2021, the study reveals a consistent increase in the mention of AI-related terms disclosure since 2014. However, the level of AI-related disclosure remains weak for some banks, suggesting that Jordanian banks are still in the early stages of adopting and implementing AI technologies. The results indicate that AI-related keywords disclosure has an influence on banks’ financial performance. AI has a positive effect on accounting performance in terms of ROA and ROE and a negative impact on total expenses, which supports the dominant view that AI improves revenue and reduces cost and is also consistent with past literature findings. This study contributes to the growing body of AI literature, specifically the literature on AI voluntary disclosure, in several aspects. First, it provides an objective measure of the uses of AI by formulating an AI disclosure index that captures the status of AI adoption in practice. Second, it provides insights into the relationship between AI disclosure and financial performance. Third, it supports policymakers’, international authorities’, and supervisory organizations’ efforts to address AI disclosure issues and highlights the need for disclosure guidance requirements. Finally, it provides a contribution to banking sector practitioners who are transforming their operations using AI mechanisms and supports the need for more AI disclosure and informed decision making in a manner that aligns with the objectives of financial institutions. Full article

The current study aims to examine the determinants of the capital adequacy ratio (CAR) in the context of Jordanian banks through a literature review and analysis of empirical evidence. The aggregate data were obtained from Globaleconomy.com, the Financial Soundness Indicators, the Central Bank of Jordan, and World Bank Data covering the period from 2003 to 2021. The aggregate data were analyzed using autoregressive distributed lag (ARDL), utilizing Econometric Views (EViews) software. The empirical results suggest a short-run causality relationship running from banks’ credit-to-deposits ratio, banks’ leverage ratio, banks’ liquidity ratio, and one-year-lagged ROE to the CAR. The results also suggest the existence of short-run causality running from the capital-to-assets ratio, one-year-lagged capital-to-asset ratio, liquid-assets-to-deposits ratio, and coverage ratio to CAR. In addition, the results show the leverage ratio and liquidity ratio as having positive long-run associations with CAR. A positive and significant long-run association was also found between CAR, on the one hand, and the capital-to-assets ratio and the liquid assets to deposits ratio; the coverage ratio, on the other hand, showed a negative and statistically significant long-run association with CAR. The pairwise Granger causality test results reveal that liquid asset to deposits, money supply, profitability, and the capital-to-assets ratio Granger cause CAR. The study findings emphasize the importance of understanding the factors impacting CAR, the direction of the influence, the magnitude of the influence of the determinants of CAR in emerging economies such as Jordan and taking appropriate measures to safeguard the stability and resilience of the banking industry. Full article

This study aims to examine the factors that influence business intelligence and analytics (BIA) usage in the banking sector. Based on a comprehensive literature review, a theoretical model was developed to explore the impact of three key factors on business intelligence and analytics adoption and usage in the banking sector, namely technological, organizational, and environmental factors. The study used the Statistical Package for the Social Sciences (SPSS) to analyze data collected from 120 employees of Jordan Arab bank. The results revealed the critical impact of not only the existence of data and technology infrastructure but also the importance and availability of management and human resources support and capabilities. This study suggests that, more importantly, successful planning for business intelligence and analytics should go beyond the technology aspects to gain the full benefits of such technology, especially in the banking sector. Yet, we argue that more research needs to be conducted, especially in the context of developing countries, to fully understand how banking sectors can successfully implement and utilize business intelligence and analytics. Full article

The aim of this paper is to use a recently developed framework of supply chain integration (SCI) to examine the influence of a set of relationships between SCI and internal control on financial performance in the Jordanian banking sector. SCI consists of external integration and internal integration. External integration includes customer integration and supplier integration. This study utilizes survey data from 249 employees in the Jordanian banking sector and tests the research framework and hypotheses using exploratory factor analysis. The impact of supply chain internal and external integration and internal control significantly affected financial performance. The impact of the examined factors on financial performance is as follows, in decreasing order: internal integration, supplier integration, customer integration, and internal control. This study’s contribution to supply chain management is in its integration of SCI and internal control variables to propose a practical framework for the banks to use, and its development of a measurement tool for managers to determine the effects of internal and external integration and internal control on financial performance. Full article

Banks must meet the needs of their customers in order to achieve sustainable development. The aim of this paper is to examine service quality dimensions, by using the modified SERVQUAL model, which can be used to measure customer satisfaction, and the effect of these dimensions (tangibles, responsiveness, empathy, assurance, reliability, access, financial aspect, and employee competences) on customer satisfaction in Jordanian banks. Data were gathered from 825 customers in the Jordanian banking sector. The sample data were statistically analyzed through exploratory factor analysis by the SPSS program to determine service quality perception and customer satisfaction. The results illustrate that the modified SERVQUAL Model extracted four subscales in the new model instead of eight in the initial model. The first subscale contains four dimensions—assurance, reliability, access and employee competences. The second subscale consists of two dimensions—responsiveness and empathy. The third and fourth subscales—financial aspect and tangibility—are separate factors. Further studies should consider the dimensions of access, financial aspect, and employee competences as essential parts of service quality dimensions with the other subscales, so as to improve wider customer satisfaction in the banking sector. In the authors’ opinion, the modified SERVQUAL model is useful for addressing customer satisfaction in the banking sector. Full article