Enterprise resource planning success in Jordan from the perspective of IT-Business strategic alignment

Abstract

This research explores the implementation of Enterprise Resource Planning (ERP) success in an organizational setting that has been rarely explored. Owing to the lack of theoretical attention, the researchers decided to evaluate ERP success in the context of Jordanian-listed companies. This quantitative study employed the DeLone and McLean success model, while questionnaires were used to collect the data. The questionnaires were mailed to 388 CEOs and CIOs, and a total of 358 valid questionnaires were evaluated using Structural Equation Modeling (SEM). Information quality, system quality, training quality, and ease of use, all impacted manager satisfaction (here after known as user satisfaction) positively, while user satisfaction affected ERP success. Additionally, ERP success was influenced by the quality of training, system quality, and IT-business strategic alignment. The results show that service quality did not significantly affect user satisfaction. Furthermore, user satisfaction showed a mediating effect on the relationship between training quality and ERP success. However, user satisfaction did not mediate the relationship between ease of use and ERP success. The findings will aid managers and practitioners in better understanding the elements that influence ERP success among Jordanian-listed firms.

Keywords:

• Enterprise Resource Planning
• manager satisfaction
• training quality
• IT-Business strategic alignment
• Jordan

PUBLIC INTEREST STATEMENT

In recent years, the use of Enterprise Information Systems (ERP) has exploded around the world, allowing businesses to compete in a demanding business climate. Several firms are still trying to reap the benefits of ERP since the installation did not go as planned. Managerial dissatisfaction is one of the key causes of ERP failure. The purpose of this article is to look at the factors that influence ERP manager satisfaction in Jordanian businesses. User satisfaction was favorably influenced by information quality, system quality, training quality, and ease of use; whereas ERP success was influenced by manager satisfaction. The quality of training, system quality, and IT-business strategic alignment all played a role in ERP success. The findings suggest that service quality has no significance on manager satisfaction. Managers and practitioners will benefit from the findings as they gain a better knowledge of the factors that drive ERP success among Jordanian-listed companies.

1. Introduction

Enterprise Resource Planning (ERP) encompasses an innovative method employed by current organizations in dealing with the currently multifaceted business environment. ERP is a set of business software packages for integrating and optimizing the process of business management. Utilizing a single database, ERP incorporates the information flow and business processes. It allows organization to collect and store data obtained from different departments and locations via regular user interface (Al-Jabri & Roztocki, 2015; Ouiddad et al., 2020). ERP is grounded upon customary business rules, and this system provides a shared source for businesses in all domains (Nah et al., 2007; Raoof et al., 2021). The adoption of ERP, especially among leading companies, has been majorly linked to its transactional and operational aspects, as opposed to its capacities in decision-making support (Holsapple & Sena, 2005), and the link between ERP systems and decision-making support is more well-defined today as the progress and usage of real-time technologies and big data are becoming more expansive (Holsapple et al., 2017).

For an organization, a successful ERP system greatly facilitates business intelligence owing to its ability in furnishing managers with a cohesive analysis of the involved processes (Al-Jabri & Roztocki, 2015; Al-Sherideh et al., 2018; Fadlalla & Amani, 2015; S. Lee & Kim, 2007). Notably, ERP system demonstrates the ability to connect various organizational arenas like human resources, economic systems, order management, suppliers and customers, turning these areas into a strong unified system equipped with collective data and distinguishability (Chen, 2001; Pishdad et al., 2013). However, ERP system implementation is challenging, expensive and complex, and its incompatibility with the culture of business even that of society, which has frequently occurred, has led to disappointment and even abandonment of the system. In the context of Jordan, the use of ERP system is common among large businesses. On the other hand, its usage among SMEs is rather new. As such, the use of ERP among Jordanian SMEs becomes the focal point of this study, particularly on their information of value at the onset of ERP system usage. Clearly, organizations all over the world have been seeking for the methods for increasing the benefits that they could attain from ERP usage and the anticipated return of investment.

Accordingly, this study is motivated primarily by the hurdles faced by businesses in Jordan in their ERP implementation. Specifically, the study at hand seeks to evaluate the success of ERP at the organizational level, after its implementation, as perceived by Jordanian listed firms. For the purpose, the DeLone and McLean’s (2003) model, known as the D&M IS success model, becomes the theoretical base for this study. In the literature of ERP success measurement, the model has been frequently applied as a theoretical base, as can be referred in Ouiddad et al. (2020), and Sun and Mouakket (2015). However, to date, most studies that applied this model were only evaluating IS success relating to the individual impact rather than the organizational impact like ERP success (Almajali et al., 2016; Harr et al., 2019; Hawari & Heeks, 2010), in the context of ERP particularly (Ifinedo et al., 2010). This has resulted in a knowledge gap. Hence, this study will be the first one to examine whether information quality, system quality and service quality would positively affect manager satisfaction. Also, this study attempts to determine whether manager satisfaction has impact on ERP success. The impact of training quality, ease of use and IT-business strategic alignment on ERP success in Jordanian context is equally investigated since there is call from (Al-Okaily et al., 2021a) to study training quality and its impact on ERP implementation in organization. Also, in their study, Ouiddad et al. (2020) had proposed investigating the impact of IT-business strategic alignment on ERP implementation success.

The DeLone and McLean’s (2003) model applied this study is referred as the Information System Success Model (ISSM). Several studies that investigated ERP success at organizational level using ISSM were primarily focusing on western and developed countries. On the other hand, developing countries such as Jordan have not been addressed in such context. Notably, Jordan embraces a unique culture and its IT infrastructure is rather weak. In their study, Pishdad et al. (2013) pointed to a number of challenges associated with ERP implementation. These challenges include lack of process, lack of technical competency, lack of knowledge on the change requirement, in addition to the lack of contextualization and organization support. Relevantly, Ouiddad et al. (2020) proposed looking into factors including strategic alignment of ERP system to increase the knowledge on the strategic benefits of ERP success. Accordingly, the study at hand examined the links between the latent variables of the established model as an attempt to cover all factors affecting the quality of the formed decisions.

The composition of this research is as follows: Section 2 discusses the study’s theoretical background, while the ensuing Section 3 delineates the hypothesis formulation. Section 4 presents the research method, followed by Section 5 that presents the data analysis. Section 6 discusses the results in detail, followed by section 7 that presents the study implications, while Section 8 as the ending portion of the research presents the limitations of the study and the future research directions.

2. Theoretical background

The D&M IS success model (DeLone & McLean, 2003) allows complex information systems to be evaluated. Additionally, it allows the formation, dispersal and implementation of procedural information and causal dimension with the potential to affect user of the system. The D&M model (DeLone & McLean, 1992) presents six latent variables relating to information system success as follows: system quality (SysQ), information quality (InfQ), use, user satisfaction (USat), individual impact and organizational impact. However, the D&M success model was revised in 2003 by its authors with the inclusion of the construct “service quality”, and the substitution of the constructs “individual impact”. Further, the construct “organizational impact” was taken out and replaced with the construct of net benefits. Grounded upon the task to be carried out, the revised D&M success model is applicable at multiple analytical levels, and as highlighted in various studies (e.g., Chou & Hong, 2013; Kharuddin et al., 2015; Wickramasinghe & Karunasekara, 2012), this model could function as a theoretical foundation in the evaluation of the effect of ERP systems on organizational performances. This model has been widely used in evaluating ERP success, but not at the organizational level (Almazan et al., 2017; Ifinedo et al., 2010).

Bernroider (2008) was among the few that applied ISSM in his study of ERP among small-to-medium and large firms in Austria. In this study, the author altered ISSM through the exclusion of system use and satisfaction in examining the effect of service quality, system quality and information quality on organizational benefits. The results demonstrated system quality, information quality and service quality being the major factors in gaining benefits both financial and non-financial. A model was proposed by Ifinedo et al. (2010) in their empirical study that evaluated ERP success in organizations in Sweden and Finland. Specifically, involving 109 firms as sample, the authors were looking at the interrelationship between system quality, service quality, information quality, individual impact, workgroup impact and organizational impact. The obtained results considerably supported the model proposed, excluding the factors of information quality with individual impact.

Involving manufacturing firms in Taiwan, the success model was applied by Chou and Hong (2013) in testing the impact of quality dimensions (information-system-service) on system use, satisfaction and organizational impact. The model proposed by the authors showed a good predictive value. Nonetheless, their analysis results showed no impact of system use on other dimensions in the model. Meanwhile, a theoretical model was constructed by Tsai and Cheng (2012) following ISSM and the balanced scorecard. Specifically, the authors examined the impact of ERP’s criteria of selection on the success of implementation. The attained results led to the deduction that firms generally would not take into account the success factors in their ERP implementation.

It was thus clear that findings on the subject at hand are mixed, in addition to the scarcity of relevant studies. As such, this study will measure ERP success within a different context, that is, the Kingdom of Jordan. As demonstrated, the success of ERP from an organizational viewpoint has not been examined within the context of this country, leading to a literature gap. Hence, a theoretically grounded research on ERP success would be valuable, considering that the construction of ERP systems in developing countries and developed countries is different. As a solution, and to address failure of ERP implementation in Jordan, this research will reexamine ISSM and come up with a theoretical model that evaluates ERP success post implementation as perceived by listed firms in Jordan.

3. Hypothesis formulation and research model

As mentioned by DeLone and McLean (2016), ISSM success factors are reliant on the system’s character and the level of analysis of the empirical enquiry in question. Prior to commencing the operations, managers of ERP system in Jordanian firms must already have received correct training from within or outside the organization. This is so that the managers will become accustomed with the modified procedures of the operation and the associated terminology to prevent frustration towards the system. Relevantly, Nwankpa (2015), and Venkatesh et al. (2003) have examined the end users of ERP system across the USA and found a direct link between ERP system usage and ERP benefit. This means that ease of use of ERP system is antecedent to ERP success, and consequently, manager satisfaction. Ease of use will familiarize the managers more towards the input and output of the system, especially if their knowledge of the systems is rather rudimentary. Also, the achievement of alignment is a primary objective of IS planning (King, 1978) because organizations with aligned organizational strategy and IT capability could improve their performance. For organizations, IT could increase performance to a certain extent, especially to those focusing on the critical areas (Sa & Hambrick, 1989).

The theoretical model of this study can be viewed in figure 1. As displayed, this study proposes a total of nine research hypotheses. The impact of manager satisfaction on performance has been affirmed in various studies (Organ, 1977). In this regard, increasing the satisfaction of sales staff will increase their readiness towards enriching their skills, leading to increased sales efficiency. Jaworski and Kohli (1991) relevantly found a positive link between user satisfaction and job performance. Additionally, personal response can be impacted by user satisfaction. Likewise, Seashore & Taber found that user satisfaction and performance were significantly correlated. Somehow, considering that individual performance can be influenced by user satisfaction, ERP user’s satisfaction greatly contributes to performance, as evidenced in studies including Al-Jabri and Roztocki (2015), Ifinedo and Olsen (2015), and Kositanurit et al. (2006). The hypothesis below is therefore presented:

H1. Manager satisfaction has a positive impact on ERP success.

Figure 1. Research model.

The direct impact of training, ease of use and IT-Business strategic alignment on ERP success was examined in this study. In their study, Krumbholz and Maiden (2001) reported that for the majority of ERP implementing companies, there was an unlikelihood of structuring and processing that are well-matched with ERP system’s tools, configuration and information types. This shows that ERP implementing firms need to alter their key processes to meet the requirements of their implemented ERP system. Notably, ERP system implementation requires significant revolution in the company. This could cause confusion and errors to the company. Hence, managers must be prepared to change through training quality. In fact, ERP implementing companies are required to undergo extra training to close the discrepancy between what knowledge the firm has, and what knowledge the firm should have when running ERP system (Al-Okaily et al., 2021a; Dezdar & Ainin, 2011). Hence, we formulate H2 below:

H2: Training quality has a positive impact on ERP success.

Based on past findings, ease of use is expected to affect ERP implementation success. However, as ERP software is complex, the enterprise staff must learn the new working methods and new tools. In this regard, Nah et al. (2007) mentioned that an organizational culture that supports open communications can ease the organizational learning process, and this will facilitate ERP system implementation success by way of enhanced rapport and increased communication between ERP ideas and end-users. This study therefore presents the following hypothesis:

H3: Ease of use has a positive impact on ERP success.

IT-business strategic alignment is expected to affect ERP success. To some considerable degree, IT may contribute to the performance of the organization, and this is particularly true among organizations that concentrate on more critical areas (Almajali & Dahalin, 2010; Sa & Hambrick, 1989). It was found that organizations with highly aligned business strategy and IT capability are more inclined to employ IT for strategic purposes (Sabherwal & Kirs, 1994). Considering the above findings, this study presents the following hypothesis:

H4: IT-business strategic alignment has a positive impact on ERP success.

Training programs are generally carried out to provide training to the newly hired and the current employees to impart them with the skills that would allow them to efficiently perform their tasks (Alavi & Leidner, 2001; Dessler, 1994). Employees could increase their knowledge, skills and abilities through training, and training could transform how employees feel aside from having their job performance improved (Masa’deh et al., 2014). User satisfaction can be increased through training as well (Bradley & Lee, 2007). Among enterprises with ERP system, superior or inferior training impact user satisfaction towards the use of the system. The hypothesis below is thus proposed:

H5: Training quality has a positive impact on manager satisfaction.

The construct ease of use relates to user’s certainty that a given technology has easy usage. In other words, it relates to the degree to which the use of the technology in question is effortless (Davis et al., 1989). Markedly, a technology or a system that is viewed as fully or in part complex to use is unlikely to be used especially when an alternative is available. As such, the review of technology usage of technology operator is difficult to execute, especially under purposeful settings (Abbas, 2016; Al-Sherideh & Ismail, 2020; K.C. Lee & Chung, 2009; Wixom & Todd, 2005). Hence, the hypothesis below is presented:

H6: Ease of use has a positive impact on manager satisfaction.

The extant literature regards user satisfaction as a variable with significant mediating effect (Masa’deh et al., 2014; Zhu et al., 2010). Studies on consumer behavior have affirmed the mediating role of customer satisfaction on the link between service quality and repeat consumption. Hence, in the context of this study, it is expected that user satisfaction would impart a mediating impact on training, ease of use and ERP success factor. In their study, Zhu et al. (2010) found partial mediation of user satisfaction on the link between training and job performance, and the result was justified by the partial mediation of job performance at this point. The authors further reported a direct linkage between training and user satisfaction, and a mediating link is present with user satisfaction. Furthermore, the authors found partial mediation of user satisfaction on the relationship between participation through ease of use and job performance. This result was justified by the partial mediation of job performance at this point. Further, the authors reported a direct linkage between participation and user satisfaction, and a mediating relationship appears to be present with user satisfaction. To this end, the study proposes two hypotheses as below:

H7a: Manager satisfaction plays a mediating role in the relationship between training quality and ERP success.

H7b: Manager satisfaction plays a mediating role in the relationship between ease of use and ERP success.

The authors DeLone and McLean (2003) described InfQ as the outputs’ semantic quality, and the outputs are formed by IS. InfQ, as perceived by user, refers to data that that correspond to their desires and needs. The D&M model (DeLone & McLean, 2003) proposes the direct effect of InfQ on ERP user’s satisfaction. Relevantly, Chou and Hong (2013), Gorla et al. (2010), and Lin et al. (2006) mentioned that in InfQ evaluation, factors like accurateness of information, understandability of information, timeliness of information delivery and the significance of the information associated with decision-making were created and tested within ERP setting. Correspondingly, the belief of user that the information is revised, precise, reliable, comprehensive, applicable and in an easy-to-comprehend format, will increase user satisfaction (Chou & Hong, 2013; Cidral et al., 2018; DeLone & McLean, 2016; Hsu et al., 2015; Ouiddad et al., 2020). Hence, this study came to the following hypothesis..

H8: Information quality has a positive impact on manager satisfaction.

System quality (SysQ) could increase the efficiency of system usage, especially in the execution of specific tasks and in the optimization of system settings. A good SysQ improves user experience and reinforces the actions of user as well. SysQ is quantifiable through perceptual measures represented by dependability, flexibility speedy system responses, and ease of use (DeLone & McLean, 2003; Lin et al., 2006; Rai et al., 2002). Similarly, Chou and Hong (2013) and Gorla et al. (2010) in their study stated that dependent on specific field of ERP, SysQ is observable via global system performance that is measurable via individual perceptions in regards to usage and satisfaction. DeLone and McLean (1992) in their study reported that system quality presents users with a vast gamut of attributes associated with system performance like reliability, flexibility and ease of use, all of which, affect user satisfaction. Relevantly, Costa et al. (2020), Shim and Jo (2020), Harr et al. (2019), and Hsu et al. (2015), and Sun and Mouakket (2015) found that improved system contributes to better user satisfaction. Hence, the hypothesis below will be put to test:

H9: System quality has a positive impact on manager satisfaction.

ERP managers may find system access or use difficult. For this reason, SerQ should be a primary indicator that assures that bugs issues are resolved and that users with technical difficulties are receiving assistance and support. The use of well-formulated service will increase USat (Petter et al., 2008; Pitt et al., 1995). As demonstrated by several ERP systems studies (e.g., Alzoubi, 2016; Chou & Hong, 2013; Ifinedo et al., 2010), SerQ and USat are positively correlated. Furthermore, DeLone and McLean (2003) had proposed in their revised model that the provision of timely solution to problems faced by user while also fulfilling their interests and needs, impacts user satisfaction. Similarly, Hsu et al. (2015), Rana et al. (2015), and Chou and Hong (2013) reported a significant impact of service quality on user satisfaction. As such, this study proposes the hypothesis below:

H10: Service quality has a positive impact on manager satisfaction.

4. Research method

4.1. Measurement

The items of measurement for each construct were adapted from past studies. Each of the items are as presented in the Table 1 below:

Table 1. Measurements and sources of research constructs

Construct	Code	Measurement for each construct
Training quality (Simon & Werner, 1996), verified by (Al-Okaily et al., 2021a)	TR1	Training helps my company to maintain security.
	TR2	Formatting destroys all the stored data on the disk.
	TR3	Training allows me to share my expert experiences with my colleagues.
	TR4	The training provided to me was realistic and practical.
	TR5	The context and process of the training are well matched.
Ease of use (Davis et al., 1989), verified by (Al-Sherideh & Ismail, 2020)	PE1	Learning to use ERP would be easy for me.
	PE2	It would be easy to get ERP to function as I wish.
	PE3	I would have clear and comprehensible interaction with ERP.
	PE4	I would have flexible interaction with ERP.
	PE5	I can easily become expert in ERP usage.
	PE6	I would find ERP easy to use.
IT-Business strategic alignment (Pierce, 2002), verified by (Almajali et al., 2016)	SA1	The IT planners in my company understand the objectives, business strategies, and long-standing goal of the company.
	SA2	The business plans of my company give clear directions for IT planning.
	SA3	The IT managers in my company are involved in our strategic business planning.
	SA4	The IT planners and business planners in my company collaborate directly in developing the IT strategic plan.
	SA5	The IT strategy of my company is based on the company’s business strategy.
	SA6	The strategies of business and IT in my company are incorporated fully and are jointly developed.
ERP Success (Sabherwal & Kirs, 1994), verified by (Harr et al., 2019)	ES1	Our ERP makes us different from our competitors.
	ES2	Our ERP decreases the administrative costs.
	ES3	Our ERP makes our internal operations more efficient.
	ES4	Our ERP improves our reputation.
	ES5	Our ERP makes us successful overall.
Manager satisfaction (Hsu et al., 2015), verified by (Al-Okaily et al., 2021b)	MSat1	I feel satisfied with the quality of the system of ERP.
	MSat2	I feel satisfied with the quality of the information provided by ERP.
	MSat3	I feel satisfied with the quality of service provided by ERP.
	MSat4	I am generally satisfied with our ERP system.
Information quality (Lin et al., 2006), verified by (Ouiddad et al., 2020)	InfQ1	The ERP system provides accurate information
	InfQ2	The ERP system always provides timely information.
	InfQ3	The ERP system provides valuable data.
	InfQ4	The ERP system provides clear information.
	InfQ5	The ERP system provides information valuable for decision making.
System quality (Lin et al., 2006), verified by (Shim & Jo, 2020)	SysQ1	Our ERP system is always in operation as it should be.
	SysQ2	Our ERP system is sufficiently fast in responding.
	SysQ3	Using our ERP system is easy.
	SysQ4	The user interface of our ERP system can easily be adjusted to fit one’s needs.
Service quality (Petter et al., 2008), verified by (Alzoubi, 2016)	SerQ1	Our IS department provides prompt service.
	SerQ2	Our IS department provides accurate information.
	SerQ3	Our IS department provides training that improves my work quality.
	SerQ4	Our IS department can resolve my problems.
	SerQ5	Our IS department is reliable—they deliver as promised.

4.2. Data collection

This study employed a sample comprising 194 firms listed in the Amman Stock Exchange (ASE). The data on these firms were gathered from the ASE database as at end of 2021. The sampled firms were classed into one of the three major sectors of banking, service and industrial companies. These firms were leading firms in ERP implementation and they were also major contributors in the country’s national economy. Data were collected through a questionnaire-based survey. As indicated by Almahamid (2019), a survey is an effective method for data gathering for studies with well-established research variables. Stratified random sampling could be the best way for this study because the study population comprised strata and each could furnish the study with the required information (Sekaran, 2003). Meanwhile, the key informants to this study were the Chief Information Officers (CIOs) and Chief Executive Officers (CEOs) because they were the ones who oversee the IT management practice and strategic practice in their respective firms in addition to being adept in ERP measurement as end-user group. Furthermore, CEO is the one overseeing the IT initiatives in the organization. The unit of analysis was the firm or organization level. Self-administered questionnaire was used, involving 194 CIOs and 194 CEOs were from firms in Jordan. A total of 358 completed questionnaires were usable for analysis.

Observing the results of the descriptive statistics, this study found that 250 of the respondents were male, and 108 of the respondents belonged to the age group of 40–50 years old. Approximately one-fifth of the respondents (72 respondents) were Master’s degree holder, and the majority (80% or 286 respondents) had been in service for 7 to 10 years. The majority of surveyed firms (220 firms) had been implementing ERP for more than 4 years. Lastly, about half of CIOs (102) were working in financial firms, and about the same percentage of CEO (103) were working in service firms.

5. Data analysis and results

5.1. Descriptive analysis

The descriptive analysis involves the computation of the mean and the standard deviation both of which illustrate the respondents’ responses and hence attitude towards each survey item. Based on Sekaran and Bougie (2013), and Pallant (2005), the mean value denotes the principal tendency of the data, whereas the standard deviation enumerates the dispersal of the data, forming an index of the data spread or variability. A set of values with a small standard deviation would have close cluster of means, or the means are located close to one another, while that with large standard deviation shows the reverse. The following formula was applied in determining the items’ level: (highest point in Likert scale—lowest point in Likert scale)/the number of the levels used = (7–1)/7 = 1.2. Accordingly, the interpretations are as follows: 1–2.2 means “very low,” 2.21–3.4 means “low,” 3.41–4.6 means “moderate,” 4.61–5.8 means “high,” and 5.81–7 means “very high.” The items were arranged in accordance with their scored means. Tables 2 and 3 can be referred.

Table 2. Overall mean and standard deviation of the study variables

Type of Variable	Variables	Mean	Standard Deviation	Level	Order
Independent Variable	Training Quality (TR)	5.6621	1.15160	High	1
	Information Quality (InfQ)	5.5154	1.11602	High	2
	System Quality (SysQ)	5.4052	1.18251	High	3
	Service Quality (SerQ)	5.3041	1.13321	High	4
	Ease of Use (PE)	5.2210	1.02204	High	5
	IT-Business Strategic Alignment (SA)	5.2100	1.13155	High	6
Mediating Variable	Manager Satisfaction (MSat)	5.5230	1.33669	High	-
Dependent Variable	ERP Success (ES)	5.5712	1.35528	High	-

Results of data analysis in Table 2 show that all research variables are of high levels. Meanwhile, the mean, standard deviation, level, and order scores for items of each of the variables scrutinized in this study can be viewed in Table 3.

Table 3. Mean and standard deviation of the study variables

TR1	5.81	1.233	Very High
TR2	5.82	1.250	Very High
TR3	5.77	1.334	High
TR4	5.30	1.222	High
TR5	5.21	1.201	High
Information Quality (InfQ)	Mean	SD	Level
InfQ1	5.44	1.310	High
InfQ2	5.21	1.211	High
InfQ3	5.51	1.361	High
InfQ4	5.58	1.244	High
InfQ5	5.26	1.211	High
System Quality (SysQ)	Mean	SD	Level
SysQ1	5.32	1.221	High
SysQ2	5.31	1.463	High
SysQ3	5.61	1.333	High
SysQ4	5.43	1.231	High
Service Quality (SerQ)	Mean	SD	Level
SerQ1	5.33	1.261	High
SerQ2	5.51	1.181	High
SerQ3	5.58	1.144	High
SerQ4	5.52	1.132	High
SerQ5	5.57	1.144	High
Ease of Use (PE)	Mean	SD	Level
PE1	5.23	1.111	High
PE2	5.56	1.121	High
PE3	5.49	1.145	High
PE4	5.22	1.166	High
PE5	5.66	1.171	High
PE6	5.461	1.102	High
IT-Business Strategic Alignment (SA)	Mean	SD	Level
SA1	5.221	1.121	High
SA2	5.401	1.142	High
SA3	5.236	1.133	High
SA4	5.529	1.116	High
SA5	5.511	1.118	High
SA6	5.323	1.156	High
Manager Satisfaction (MSat)	Mean	SD	Level
MSat1	5.41	1.260	High
MSat2	5.58	1.233	High
MSat3	5.51	1.244	High
MSat4	5.56	1.255	High
ERP Success (ES)	Mean	SD	Level
ES1	5.77	1.311	High
ES2	5.23	1.248	High
ES3	5.56	1.266	High
ES4	5.21	1.264	High
ES5	5.56	1.273	High

5.2. SEM analysis

The proposed study hypotheses were tested using SEM analysis. The details are as presented below:

5.2.1. Measurement model

The properties of the items of the instrument were examined in this study using Confirmatory Factor Analysis (CFA). Specifically, the measurement model demonstrates the manner in which latent variables or hypothetical constructs are scrutinized on their perceived variables. Essentially, the measurement model expresses the validity and reliability of responses for the latent variables (Bagozzi & Yi, 1988; Hair et al., 2010; Kline, 2010; Newkirk & Lederer, 2006). Meanwhile, the factor loadings, Cronbach alpha, composite reliability, and Average Variance Extracted (AVE) for the variables are all displayed in the following Table 4, and as can be viewed, the factor loadings indicators all surpass the value of 0.50, with the exception of certain items specifically: InfQ5 = 0.311, SysQ4 = 0.211, SerQ4 = 0.415, SerQ5 = 0.236, PE5 = 0.423, PE6 = 0.229, SA5 = 0.404, SA6 = 0.371, MSat4 = 0.173, ES4 = 0.183 and ES5 = 0.370. The aforementioned items were eliminated. The elimination was to achieve a better fitting measurement model so that convergent validity could be achieved, as proposed in Creswell (2009), and Bagozzi and Yi (1988). In this regard, convergent validity was achieved at the item level because the factor loadings were all larger than 0.50. Meanwhile, all values of composite reliability were larger than 0.60. Hence, it can be said that the latent variables have internal consistency of high level. The convergent validity of the variable items was affirmed because the AVE values all were more than 0.50 (Bagozzi & Yi, 1988; Hair et al., 2010).

Table 4. Properties of the final measurement model

Constructs and Indicators	Factor Loadings	Std. Error	Square Multiple Correlation	Error Variance	Cronbach’s Alpha	Composite Reliability*	AVE**
Training Quality (TR)					0.812	0.80	0.83
TR1	0.822	0.031	0.620	0.501
TR2	0.733	0.033	0.634	0.562
TR4	0.725	0.050	0.657	0.631
TR5	0.721	0.041	0.511	0.622
Information Quality (InfQ)					0.901	0.81	0.84
InfQ1	0.683	0.101	0.541	0.421
InfQ2	0.621	0.204	0.622	0.773
InfQ3	0.648	0.236	0.501	0.415
InfQ4	0.734	0.266	0.611	0.115
System Quality (SysQ)					0.831	0.77	0.53
SysQ1	0.513	0.103	0.560	0.551
SysQ2	0.731	0.033	0.574	0.201
SysQ3	0.624	0.041	0.763	0.316
Service Quality (SerQ)					0.912	0.89	0.91
SerQ1	0.811	0.041	0.716	0.322
SerQ2	0.734	0.030	0.541	0.201
SerQ3	0.901	0.015	0.731	0.211
Perceived Ease of Use (PE)					0.931	0.81	0.51
PE1	0.661	0.022	0.521	0.550
PE2	0.714	0.051	0.654	0.401
PE3	0.741	0.039	0.620	0.440
PE4	0.710	0.021	0.731	0.480
IT-Business Strategic Alignment (SA)					0.946	0.78	0.81
SA1	0.640	0.051	0.571	0.710
SA2	0.703	0.058	0.622	0.553
SA3	0.724	0.052	0.611	0.522
SA4	0.743	0.053	0.533	0.505
Manager Satisfaction (MSat)					0.871	0.87	0.90
USat1	0.911	0.041	0.741	0.322
USat2	0.933	0.030	0.711	0.311
USat3	0.811	0.031	0.721	0.411
ERP Success (ES)					0.904	0.86	0.68
ES1	0.888	0.041	0.611	0.344
ES2	0.923	0.321	0.644	0.362
ES3	0.833	0.375	0.678	0.391

* Based on the formula proposed by Fornell and Larcker (1981), the composite reliability is computed using the equation below:

Composite Reliability = (Σ Li) ²/((Σ Li) ² + Σ Var (Ei))

From the equation: Li signifies the standardized factor loadings for each indicator, while Var (Ei) represents the error variance related to the individual indicator variables.

** The variance extracted utilizes the following formula:

Average Variance Extracted = Σ Li ²/(Σ Li ² + Σ Var (Ei))

From the equation: Li denotes the standardized factor loadings for each indicator, while Var (Ei) signifies the error variance related to the individual indicator variables.

Table 5 displays the inter-correlations between pairs of constructs, and as can be observed, the values displayed were smaller than the square root of the AVE estimates of the two constructs. Based on Hair et al. (2010), discriminant validity exists in the constructs. In general, the results are demonstrating sufficient level of convergent and discriminant validity of the constructs.

Table 5. Correlations of constructs

Constructs	TR	InfQ	SysQ	SerQ	PE	SA	MSat	ES
TR	0.91
InfQ	0.552	0.92
SysQ	0.664	0.422	0.73
SerQ	0.531	0.334	0.410	0.95
PE	0.655	0.463	0.601	0.588	0.71
SA	0.644	0.512	0.446	0.557	0.501	0.90
MSat	0.713	0.479	0.545	0.654	0.515	0.511	0.94
ES	0.651	0.422	0.581	0.511	0.621	0.573	0.744	0.82

Note: Diagonal elements form the square roots of the average variance extracted for the entire eight constructs. Off-diagonal elements make up the correlations between constructs.

5.2.2. Structural model

The study hypotheses were put to test, and the structural equation modeling run with Amos 20 was used in executing the test. SEM was the chosen technique for hypotheses testing because it allows all hypotheses to be tested at the same time. The direct and indirect effects could be tested as well. Specifically, the direct effects results imply the impact of manager satisfaction on ERP success. Hence, H1 was accepted. Additionally, H2 was accepted because the results show positive and significant impact of training on ERP success. H3 was accepted as well, as perceived ease of use was found to affect ERP success. Equally, H4 was accepted as the construct of strategic alignment was shown to affect ERP success. The results show the impact of training on manager satisfaction, and therefore, H5 was accepted. The impact of perceived ease of use on manager satisfaction was affirmed by the results, and this demonstrates support for H6. H8 was accepted as well, because the results show impact of information quality on manager satisfaction. The positive impact of system quality on manager satisfaction was proven by the results, and therefore, H9 was accepted. H10 was not accepted, as manager satisfaction was not shown to be affected by service quality.

For the endogenous variables of manager satisfaction and ERP success, the coefficient of determination (R²) was correspondingly 0.365 and 0.381. This means that the model indeed illustrates the variation of the model proposed. The summarized results of hypotheses testing can be viewed in Table 6.

Table 6. Summary of proposed results for the theoretical model

Proposed Research Paths	Coefficient Value β	t-value	p-value	Empirical Evidence
H1: MSat → ES	0.164	2.148	0.011	Supported
H2: TR → ES	0.481	4.815	0.001	Supported
H3: PE → ES	0.192	2.625	0.004	supported
H4: SA → ES	0.630	6.304	0.022	Supported
H5: TR → MSat	0.314	3.645	0.016	Supported
H6: PE → MSat	0.501	5.835	0.042	Supported
H8: InfQ → MSat	0.521	5.547	0.015	Supported
H9: SysQ → MSat	0.791	8.596	0.017	Supported
H10: SerQ → MSat	0.091	1.216	0.301	Not Supported

The mediating effect of user satisfaction was tested, and the obtained results can be viewed in Table 7. Hair et al. (2010) relevantly stated that the full mediating effect can be assumed when the indirect effect is greater than the direct effect, but the same cannot be assumed when the indirect effect is smaller than the direct effect.

Table 7. Results of mediating hypotheses

Hypothesis	From	mediation	To	Direct effect	Indirect effect	Mediation
H7a	TR	MSat	ES	0.321	0.116	No mediation
H7b	PE	MSat	ES	0.004	0.123	Mediation

From the results obtained, manager satisfaction did not impart a mediating impact on the relationship between training and ERP success. Hence, H7a was not supported. On the other hand, the results show a mediating effect of manager satisfaction on the relationship between ease of use and ERP success. As such, H7b was supported.

6. Discussion and conclusion

This research was carried out mainly as a response to the challenges faced by Jordanian organizations in their ERP success. Owing to its aptness, the DeLone and McLean model was used in this study as the theoretical basis in ERP success measurement among Jordanian listed firms that utilize ERP. A total of eleven research hypotheses were put to test through Structural equation Modelling. The results show that at the organizational level, the model is sufficiently robust in measuring ERP success.

The positive influence of manager satisfaction on ERP success became the key finding of this study. Hence, H1 was supported. In addition, a direct impact between Training quality and ERP success was affirmed by the results, and this shows a need to pay attention to user training for new technology, the ERP system especially. Additionally, it is important that top management understands what the new technology requires, so that sufficient amount of funding could be allocated for it. Hence, H2 was supported. In support to the finding, Rabaai (2009) found the significance of training quality in ERP implementation project because it facilitates user in adapting to the new ERP system and organization in undergoing change owing to the implementation of ERP. Additionally, Dorobat and Nastase (2010) indicated that educating and training the people and keeping them updated all through the process of implementation will facilitate the achievement of ERP system benefits.

Additionally, ease of use was found to affect ERP success positively. Indeed, the ease of use of ERP system increases trust of user towards it, and using the system was easy, fast and cost effective. As such, H3 was supported. Furthermore, the results show a positive impact of IT-business strategic alignment on ERP success, lending support to H4. Organizational structure and IT capability should be aligned (Almajali & Dahalin, 2011; King, 1978) and IT strategy and organizational strategy should be aligned as well. Such alignment can increase performance, and in fact among the key objectives of IS planning is to achieve alignment between IT and organization (King, 1978). Meanwhile, performance is manifested through perceived IT success and organizational performance. Specifically, perceived IT success relates to the degree to which the organization’s senior managers is confident that IT capability leads to organization’s success, while organizational performance denotes how well the organization performs in general. For organizations focusing on critical areas, their performance may be significantly affected by their IT capabilities to a greater extent (Al-Okaily et al., 2021a; Sa & Hambrick, 1989). Also, organizations with business strategy and IT capability greatly aligned are more inclined to use IT for strategic purposes, and hence, strategic alignment increases ERP success.

A positive relationship was concluded between training and user satisfaction, lending support to H5. This implies the need for users of ERP system to be properly trained inside or outside the organization prior to commencing the business operations. The training will acclimatize user to the changed operation procedures and the terms associated with ERP system. This will prevent user from feeling frustrated by usage failure. The results show a positive relationship existing between ease of use and manager satisfaction. As can be construed from the findings, perceived ease of use towards ERP system increases the familiarization of users, specifically managers, with the system input and output, especially for those managers whose knowledge of the systems is still rather basic. H6 of this study was indeed supported.

A positive impact of information quality on manager satisfaction was concluded in this study. Hence, H8 was supported. In a related study, Al-Okaily et al. (2021a) agreed that accurate, comprehensive, timely, pertinent and dependable information content increases satisfaction of users towards their performance. The impact of system quality on manager satisfaction was positive. Hence, H9 was supported. Past studies including Al-Okaily et al. (2021b) and Seddon (1997) appositely reported that system quality improved the performance of managers. Specifically, the managers became more productive and they could complete their tasks faster, and hence, their satisfaction was increased. Among large-scale enterprises, it was found that user satisfaction can increase the performance across all levels of organization. A mediating effect of manager satisfaction was indeed concluded on the relationship between ease of use and ERP success. Interestingly, the opposite was found on the relationship between training and ERP success. Therefore, H7b was supported while H7a was not.

The obtained results unexpectedly showed that SerQ did not significantly affect manager satisfaction. H10 was therefore rejected. This finding was in line with several past studies (e.g., Ghobakhloo & Tang, 2015; Halawi et al., 2008; Marble, 2003; Urbach et al., 2010), but it contradicts the postulation of D&M that SerQ is a key dimension in IS success evaluation. Somehow, this finding can be justified by the fact that some managers were not completely satisfied with their IS department services. In fact, some of these managers were facing communication problems including unfulfilled promises and delays resulting from technical support issues. In a related study, Chauhan and Jaiswal (2015) found a strong linkage between good communication and USat. Further, DeLone and McLean (2003) mentioned that deficient communication affects the perception towards both SerQ and USat. Also, it was found that companies in developing countries had insufficient technical training from their IS department. This has prevented the functions and features of the ERP system from being optimally used. Technical training quality on a regular basis should thus be provided, and ideally, the training provided should go beyond the teaching of basic computer skills.

6.1. Research implications

Theoretical and managerial contributions of this study are worthy of mention. Firstly, this study is the early one that empirically measured ERP success from an IT-business strategic alignment in the context of Jordan. Notably, the key success factors of ERP success alongside its impact on the performance of Jordanian firms were explored and described in this study. Secondly, the knowledge gap on ISSM was reduced in this study through the operationalization of the dimensions at the organizational level. It is hoped that future ERP studies would take into account this aspect. In addition, ease of use, IT-business strategic alignment and training quality were found to significantly contribute to success factors, while also intensifying the organizational impact with ERP systems. Next, for ERP consultants and vendors, it is important they are aware of the challenges in implementing and constructing certain policies related to ERP implementation. Lastly, this study presents a theoretical framework for ERP success evaluation and for guiding the research undertakings in this domain. The multifaceted interactions among the constructs of IS success model (DeLone & McLean, 2003) namely InfQ, SysQ, and USat could demonstrate the competencies of ERP systems. Accordingly, the impact of InfQ of ERP system on the effectiveness of decision making could be identified. Clark et al. (2007) relevantly mentioned that the decision quality can describe the problem complexity and the efficiency of system usage. The findings of the study prove that the behaviour of manager will affect the ability of ERP systems in enhancing managerial activities. In a nutshell, this study could enrich the knowledge of the factors underpinning ERP success improvement among managers in Jordan.

6.2. Conclusion, limitations, and future research

A number of limitations of this study need to be highlighted to assist future researches. Firstly, this study employed a fairly small sample size which could limit generalization, and for this reason, future studies should employ larger sample with more expansive range of respondents. Another limitation of this study concerns the variables used—they were rather limited—and so, future studies should expand their variable selection by including other factors including facilitating conditions, learning curve, and the digital divide. The inclusion of these factors could increase the understanding of the strategic benefits of ERP to facilitate decision-making, and facilitate the identification of other variables that explain the real behavior of managers.

Another limitation is the setting of this study which is Jordan. Hence, future studies could be carried out in other emerging countries or other Arab countries comparable to Jordan. This would allow comparison of results while also increasing the results’ generalization. Another point worth noting is the fact that the results of this study did not support the postulated relationship between service quality and user satisfaction. Hence, this relationship needs to be examined further.

Corrrection

This article has been corrected with minor changes. These changes do not impact the academic content of the article.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Funding

The authors received no direct funding for this research.

Notes on contributors

Dmaithan Abdelkarim Almajali

Dmaithan Abdelkarim Almajali is an Assistant Professor at Applied Science Private University in Jordan. His research interest includes ERP, Technology Adoption, IT-Business Alignments, and E-Commerce.

Firas Omar

Firas Omar is an Assistant Professor at the University of Petra in Jordan. His areas of research interests focus on Mobile and Computer Systems in the field of E-Business.

Abdullah Alsokkar

Abdullah Alsokkar is an Assistant Professor at Arab Open University-Jordan Branch. His research interests focus on User Experience, Business Intelligence, and Software Architecture aspects.

Ala’a Saeb Alsherideh

Ala’a Saeb Alsherideh is an independent researcher. His areas of research interests focus on Information Security, Mobile Applications, and E-Government.

Ra’Ed Masa’Deh

Ra’Ed Masa’Deh is a Professor of MIS at the University of Jordan in Jordan. His research interests include Knowledge Economy, IT-Business Strategic Alignment, and IT-based Competitive Advantages.

Zulkhairi Dahalin

Zulkhairi Dahalin is a Professor at Universiti Utara Malaysia. His research interest includes ICT in Rural Development, Enterprise Architecture, and Information Strategy Planning.