Determinants of sales tax compliance among Jordanian SMEs : the moderating effect of public governance

Tax compliance leads to reducing the fiscal deficit and public debt, thereby it provides funding to satisfy the economic and social development. Despite the extensive government’s efforts, the compliance of sales tax (typically known as value added tax globally) among the Small and Medium-sized Enterprises (SMEs) in Jordan is relatively low, thus, it negatively impacts the government revenues. Previous studies regarding the determinants of sales tax compliance among SMEs are limited and somewhat inconsistent. Therefore, the present study aimed at extending Fischer’s model that is built on the integration of both economic and socio-psychological theories in the context of sales tax compliance as well as examining the moderating role of the public governance and patriotism as a new construct to have better understanding on the determinants of sales tax compliance. This study hypothesised eight factors affecting sales tax compliance, as well as eight hypotheses on the moderating effects of public governance on such relationships. Using the quantitative approach, this study employed a self-administered questionnaire survey of 660 owner-managers of SMEs listed in the Jordan Chamber of Industry of which 212 responses were usable for analysis purpose. The Partial Least Squares (PLS) results revealed positive influence of tax audit, tax penalty, tax moral, tax fairness and patriotism on sales tax compliance and a negative effect of tax complexity on sales tax compliance respectively. Meanwhile, peer influence and tax rate do not demonstrate any significant influence on sales tax compliance. The findings also ascertained the considerable moderating effect of the public governance on the associations between tax audit, tax penalty, and peer influence on sales tax compliance. Besides extending the body of knowledge by providing a comprehensive model to explain how several interrelated factors influence sales tax compliance, the results offer insights on the determinants of sales tax compliance among SMEs

A Socio-Economic Model of Sales Tax Compliance

Tax compliance is an issue that can be traced back to the introduction of taxes, which is the reason such compliance remains a significant topic in the current literature of academia and practice. Prior studies on the topic of tax compliance or non-compliance can be categorized into two, namely economic and social/psychological theories. In a more serious note, tax evasion has remained a key issue among governments all over the globe, with Jordan being no exception. Jordan has undertaken different fiscal measures to increase compliance in the domestic front in the past decades, but based on annual reports, the country is still experiencing a considerable increase in net public debt and fiscal deficit that can be traced back to the increased tax non-compliance rate. This is specifically true in the case of sales tax in Jordan. To compound the matter further, literature concerning the determinants of sales tax compliance as well as other determinants that drive non-compliance is still scarce, with a universal tax compliance model able to explain the issue with clarity still being elusive. Hence, this work proposed the determinants of sales tax compliance in the context of small and medium-sized enterprises (SMEs) in Jordan, extending Fischer’s model of tax compliance, and adding the moderating role of tax knowledge and direct effect of tax service quality. This study proposed a model encapsulating the social, psychological and economic factors to provide insight into the sales tax compliance of Jordanian SMEs

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

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

Digital Financial Inclusion Sustainability in Jordanian Context

Digital Financial Inclusion (DFI) refers to efforts to make digital financial services available and affordable to all individuals and institutions, regardless of their net expense or institution size and demographic location. Despite the immense benefits of DFI and DFI-based products and services such as mobile money and payment systems, users’ acceptance is thin, limited, and disappointing in some developing countries as Jordan. Consequently, this study has investigated the factors influencing the acceptance of the mobile payment system in the Jordanian context. This study’s research model synthesizes the Technology Acceptance Model (TAM) variables and extended the model with perceived financial cost as an independent variable. The research model has been empirically confirmed by fitting the model to data collected from 304 Jordanian citizens using a survey instrument. The data were analysed using Partial Least Squares-Structural Equation Modelling (PLS-SEM). The result has confirmed that behavioural intention to use the m-payment system is significantly and positively influenced by perceived usefulness and perceived financial cost; behavioural intention to use m-payment system was not found to be significantly and positively influenced by perceived ease of use and hence the related hypothesis was not supported. Finally, conclusions and recommendations are further discussed in the last section of this paper

Antecedents and Impacts of Enterprise Resource Planning System Adoption among Jordanian SMEs

Businesses need accounting information to support their decision-making. In this regard, the extensive use of Information Technology (IT) has enhanced the effectiveness and efficiency of accounting functions that support accounting-related information. Specifically, an enterprise resource planning (ERP) system ensures reporting accuracy, large amounts of transaction processing, and the generation of reports for analysis. Regardless of the numerous benefits that an ERP system provides, small and medium-sized enterprises (SMEs) have yet to catch up with their system usage. Hence, this study draws upon the technology-organisation-environment (TOE) framework to propose an integrated model that includes diffusion of innovation (DOI), institutional factors, and TOE to examine ERP adoption antecedents in the context of SMEs in Jordan. A mixed method is applied in this work, and it uses a self-administered questionnaire survey as the main data collection instrument along with interviews. Quantitative data are obtained from 102 respondents through the questionnaire, after which the research model is validated using SMEs in Jordan. The survey results show that relative advantage, top management support, organisational readiness, training, competitive pressure, government support compatibility, and service provider support significantly influence ERP adoption among the SMEs. The findings are expected to shed light on the way SMEs can enhance their ERP adoption for optimum performance, as well as extend the literature dedicated to the antecedents of information system, IT adoption, and their impact

Antecedents of Big Data Analytic Adoption and Impacts on Performance: Contingent Effect

The adoption of big data analytics (BDA) is increasing pace both in practice and in theory, owing to the prospects and its potential advantages. Numerous researchers believe that BDA could provide significant advantages, despite constant battles with the constraints that limit its implementation. Here, we suggest an incorporated model to investigate the drivers and impacts of BDA adoption in the Jordanian hotel industry based on the technology–organisation–environment framework and the resource-based view theory. The suggested model incorporates both the adoption and performance components of BDA into a single model. For data collection, in this study, we used an online questionnaire survey. The research model was verified based on responses from 119 Jordanian hotels. This study yielded two significant findings. First, we discovered that relative advantage, organizational readiness, top management support, and government regulations have a major impact on BDA adoption. The study results also reveal a strong and favourable association between BDA adoption and firm performance. Finally, information sharing was found to have a moderating effect on the association between BDA adoption and firm performance. The data revealed how businesses might increase their BDA adoption for improved firm performance. The present study adds to the limited but growing body of literature investigating the drivers and consequences of technology acceptance. The findings of this study can serve as a resource for scholars and practitioners interested in big data adoption in emerging nations

Antecedents of Big Data Analytic Adoption and Impacts on Performance: Contingent Effect

The adoption of big data analytics (BDA) is increasing pace both in practice and in theory, owing to the prospects and its potential advantages. Numerous researchers believe that BDA could provide significant advantages, despite constant battles with the constraints that limit its implementation. Here, we suggest an incorporated model to investigate the drivers and impacts of BDA adoption in the Jordanian hotel industry based on the technology–organisation–environment framework and the resource-based view theory. The suggested model incorporates both the adoption and performance components of BDA into a single model. For data collection, in this study, we used an online questionnaire survey. The research model was verified based on responses from 119 Jordanian hotels. This study yielded two significant findings. First, we discovered that relative advantage, organizational readiness, top management support, and government regulations have a major impact on BDA adoption. The study results also reveal a strong and favourable association between BDA adoption and firm performance. Finally, information sharing was found to have a moderating effect on the association between BDA adoption and firm performance. The data revealed how businesses might increase their BDA adoption for improved firm performance. The present study adds to the limited but growing body of literature investigating the drivers and consequences of technology acceptance. The findings of this study can serve as a resource for scholars and practitioners interested in big data adoption in emerging nations

The Role of E-Accounting Adoption on Business Performance: The Moderating Role of COVID-19

In the last decade, information systems (ISs) have made dynamic developments in light of their ability to enhance the performances of businesses. In relation to this, an organization that is effectively and efficiently managed often displays optimum performance using financial systems such as electronic accounting (e-accounting). Thus, essentially, e-accounting is utilized for the automation of operational processes and for improving business efficiency and performance. More currently, e-accounting dynamic development has laid credence to the performance of businesses in a way that the influence cannot be exaggerated. Nevertheless, past studies evidenced that successful e-accounting depends on critical success factors, and hence this study primarily aims to conduct an evaluation of e-accounting using DeLone and McLean’s information system model (DM ISM) among firms in Jordan. More specifically, this study determines the influence of information quality, system quality, service quality, system usage, and user satisfaction on business performance. The current study adopted a quantitative method, applying a self-administered survey questionnaire for the purpose of data collection from 104 e-accounting users. This study employed partial least squares structural equation modeling (PLS-SEM) to validate the data, and based on the findings, system quality and information quality affect system use; service quality of e-accounting had no significant impact on use, but e-accounting use had a significant influence on the satisfaction of users. Moreover, e-accounting system use and user satisfaction positively influence business performance. This study is an extension of the current IS literature, particularly of those focused on determining the effects of e-accounting benefits. This study validated the proposed model in the context of Jordanian firms and contributes to both the literature on and practice of e-accounting. This study provided implications, limitations, and recommendations for future research

Assessing the Intention to Adopt Cloud Accounting during COVID-19

The information technology (IT) revolutionization aside with the emergence of COVID-19 have catalyzed cloud-computing services and systems with multiple end-user benefits for online business management, specifically in the accounting discipline. For example, cloud accounting enables the significant reduction of organisational IT investment with flexible access to a large group of scalable resources. The cloud accounting enables small and medium size enterprises (SMEs) to independently engage in fundamental bookkeeping responsibilities rather than hiring external auditors for the same services. As cloud-based accounting adoption remains in the preliminary stage within Jordanian businesses, this study applied the technology, organisation, and environment model to explore cloud accounting among Jordanian SMEs. The study data were gathered from 156 Jordanian SME owners or managers with a structured online survey questionnaire. The recommended study framework encompassed seven determinants that influenced the cloud accounting adoption intention. Resultantly, except Perceived knowledge uncertainty factor, the proposed hypotheses were supported as the aforementioned factors (relative advantages, security concerns, top management support, organizational readiness, competitor’s intensity and suppliers computing support) positively and significantly influenced the cloud accounting of Jordanian SMEs. The study outcomes could facilitate IT field decision-makers and practitioners by investigating an actual cloud accounting case based on the essentiality of its application