Technology factors and ERP system efficiency in the Jordanian industrial firms: does company size matter?

Abstract

The study was structured to investigate the impact of technological factors on the effectiveness of enterprise resource planning (ERP) in Jordanian industrial firms, using a descriptive-analytical approach. This study also examines company size as a moderator variable, which has been measured using the logarithm of total assets extracted from each firm’s annual report. The study’s target population consisted of all Jordanian industrial firms listed on the Amman Stock Exchange, totaling 55 firms. Managers participated as respondents, with 220 questionnaires distributed electronically, averaging four questionnaires per company. After data collection, 92 valid questionnaires were used for statistical analysis. The findings indicate a significant and positive relationship between technological factors (such as ease of use, perceived usefulness, and digital proficiency) and ERP system effectiveness in Jordanian industrial firms. However, the study revealed that trust, as one of the technological factors, did not significantly impact ERP system efficiency. Additionally, it was found that the moderating role of company size moderates positively the relationship between two technological factors (i.e., perceived usefulness and digital proficiency), and ERP system efficiency. The research suggests that industrial firms in Jordan should take into account technological factors, including factors like ease of use, perceived usefulness, and digital proficiency, to remain current with advancements that can improve the efficiency of ERP systems. This is important due to the positive influence it can have on the operational effectiveness of Jordanian industrial companies, aiding them in their planning and decision-making processes.