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

The paper addresses how technological factors influence the efficiency of ERP systems in Jordanian industrial firms amid rapid changes in information systems, globalization, competition, and the need for integrated management solutions. ERP systems integrate core functions across accounting/finance, sales/marketing, production, and HR, promising cost reduction and improved communication. The study focuses on four technological factors—ease of use, perceived usefulness, trust, and digital proficiency—and examines whether company size (measured by the logarithm of total assets) moderates these relationships. Guided by Diffusion of Innovations (DOI) theory, the research objectives are: (1) assess the effect of technological factors on ERP system efficiency in Jordanian industrial firms, and (2) assess these effects considering the moderating role of company size. Hypotheses posit positive links from ease of use, trust, perceived usefulness, and digital proficiency to ERP efficiency (H1–H4), and a moderating effect of company size on these relationships (H5 and H5.1–H5.4). The study is motivated by limited prior focus on technological factors in ERP efficiency, particularly in developing contexts like Jordan.

The literature review outlines the centrality of the industrial sector in Jordan (manufacturing and mining), its export orientation, and challenges such as financing, infrastructure, skills gaps, and geopolitical instability. ERP systems are presented as integrated solutions that centralize data, improve decision-making, compliance, and operational efficiency, though they entail high costs, complexity, training needs, and security considerations. Technological factors shaping ERP efficiency include: ease of use (user-friendly interfaces reduce resistance and learning curves), trust (confidence in data security and system reliability), perceived usefulness (value in supporting tasks and decision-making), and digital proficiency (users’ digital skills enabling accurate use and integration). The review emphasizes DOI theory as a framework for understanding adoption and efficiency outcomes and highlights a gap in prior studies which focused more on intention to use or general determinants, with limited attention to technological factors and moderating roles like firm size in developing countries. Hypotheses are developed: H1 ease of use → ERP efficiency; H2 trust → ERP efficiency; H3 perceived usefulness → ERP efficiency; H4 digital proficiency → ERP efficiency; H5 company size moderates the above relationships (sub-hypotheses for each factor).

Design: Descriptive-analytical, cross-sectional survey. Population and sample: All 55 Jordanian industrial firms listed on the Amman Stock Exchange. Target respondents were department managers (IT, Production, Human Resources, Financial). A total of 220 questionnaires (four per firm) were distributed electronically; 92 valid responses were returned (response rate 42%). Measures: Variables measured with items adapted from validated prior surveys (details in Appendix 1). Dependent variable: ERP system efficiency. Independent variables: technological factors (ease of use, trust, perceived usefulness, digital proficiency). Moderator: company size measured as the natural logarithm of total assets from each firm’s annual report. Respondent profile: Majority aged 41–50 (approx. 64%), 63% held a bachelor’s degree and 22% a master’s; 90% had ≥8 years of experience; job titles included HR (34%), Production (29%), Finance (20%), IT (17%). Analysis: SPSS 25 used for descriptive statistics, multiple linear regression, and hierarchical regression. Five-point Likert scale employed; means categorized into low (<2.33), moderate (2.33–3.67), high (>3.67). Moderation was tested via hierarchical regression by adding company size and interaction terms/models as reported.

• Descriptive means for constructs ranged from 3.54 to 4.48, indicating generally high perceived levels; ease of use was at a moderate-to-high level.
• Multiple regression results (ERP efficiency as dependent variable):
  • Ease of use: t = 3.415, p = 0.000 (significant positive effect; accepted H1).
  • Trust: t = 1.068, p = 0.331 (non-significant; rejected H2).
  • Perceived usefulness: t = 4.772 (also reported as 3.517 in Table 4), p = 0.000/0.001 (significant; accepted H3).
  • Digital proficiency: t = 2.718–3.574, p = 0.03/0.000 (significant; accepted H4).
  • Reported R^2 values: 0.329 (Table 3) and 0.408 (Table 4 first model); adding company size increased R^2 to 0.526.
• Hierarchical regression (moderation by company size):
  • Company size main effect: path coefficient = 0.362, t = 6.821, p = 0.000.
  • Moderation outcomes by factor:
    • Ease of use: no significant moderation (H5.1 not supported).
    • Trust: no significant moderation (H5.2 not supported).
    • Perceived usefulness: significant positive moderation (H5.3 supported; ΔF and significance reported; path and t-values significant).
    • Digital proficiency: significant positive moderation (H5.4 supported; ΔF ≈ 66.663, p = 0.000; company size path ≈ 0.467, p = 0.000 in that model).
• Overall, ease of use, perceived usefulness, and digital proficiency positively predict ERP system efficiency; trust does not. Company size strengthens the effects of perceived usefulness and digital proficiency on ERP efficiency.

The findings address the research question by showing that specific technological factors—ease of use, perceived usefulness, and digital proficiency—are critical drivers of ERP system efficiency in Jordanian industrial firms, consistent with DOI theory’s emphasis on relative advantage, complexity, and user capability. Ease of use reduces learning costs and fosters adoption, perceived usefulness motivates effective utilization aligned with performance goals, and digital proficiency enables accurate, efficient system interaction and data quality. Trust did not significantly affect ERP efficiency, which may reflect robust security practices in the sampled firms, sector-specific priorities emphasizing technical performance, or measurement/contextual nuances whereby trust is not a salient differentiator of efficiency outcomes. The moderating effect of company size suggests resource availability and organizational capacity in larger firms amplify the benefits of perceived usefulness and digital proficiency—through better change management, training, and tailored configurations—while ease of use and trust effects remain relatively uniform across firm sizes. These results reinforce the relevance of DOI theory in a developing-country industrial context and underscore the importance of investing in user-centric design and workforce digital skills to maximize ERP efficiency.

This study demonstrates that ease of use, perceived usefulness, and digital proficiency significantly and positively influence ERP system efficiency in Jordanian industrial firms, while trust does not. Company size plays a significant moderating role for perceived usefulness and digital proficiency, amplifying their positive effects on ERP efficiency, but does not moderate ease of use or trust. The research contributes by centering technological factors in ERP efficiency, validating DOI theory in a developing-country context, and highlighting firm size as a boundary condition. Practically, firms should prioritize user-friendly ERP interfaces, communicate clear performance benefits, and invest in digital skills training—particularly in larger organizations where gains may be greater. Future research can extend the model with additional technological, organizational, and environmental factors, examine cross-country and cross-sectoral contexts, and link ERP efficiency to financial performance and other outcomes.

• Focus limited to technological factors; other determinants (organizational, environmental, process) were not examined.
• Single-country context (Jordan) limits generalizability; cultural and institutional differences elsewhere may yield different results.
• ERP utilization in Jordan is still developing; effects may evolve over time.
• Control variables were not comprehensively modeled; future work should incorporate and report controls rigorously.
• Sample restricted to publicly listed industrial firms; results may differ in unlisted firms or other sectors.
• Cross-sectional self-reported survey limits causal inference and is subject to common method bias; longitudinal or multi-source designs are recommended.