JIT PRODUCTION SYSTEM AND ITS EFFECT ON ACHIEVING COMPETITIVE ADVANTAGE FOR PUBLIC SHAREHOLDING INDUSTRIAL COMPANIES IN JORDAN

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1 JIT PRODUCTIO SYSTEM AD ITS EFFECT O ACHIEVIG COMPETITIVE ADVATAGE FOR PUBLIC SHAREHOLDIG IDUSTRIAL COMPAIES I JORDA Seif Obeid ALshbiel Assistant Professor Accounting Department Qasim Ahmad Al-Awaqleh Assistant Professor Accounting Department Faculty of Finance and Business Administration AL Al-Bayt University Al al-bayt University, POBOX 30040, Mafraq 253, Jordan Abstract This study aimed to identify the just-in-time (JIT) production and its effect on achieving the competitive advantage for public shareholding industrial companies in Jordan The study population consisted of all 92 public shareholding industrial companies in Jordan, of which a sample of 40 companies was randomly selected The study questionnaire was distributed on financial officers and accountants (3 questionnaires for each company) The study used the theoretical and field aspects of the descriptive analytical methodology The study results in general showed that there is a positive and statistically significant relationship between implementing JIT and achieving competitive advantage for industrial companies ie achieving the threedimension competitive advantage (production costs, product quality and financial performance) for these companies is positively affected when they implement the JIT The study results showed that applying JIT reduces production costs, and improves industrial companies' product quality and financial performance The study recommendations included the need for decision makers in industrial companies to adopt and implement the JIT due to its effectiveness in reducing production costs, improving product quality and enhancing financial performance, which can lead to achieving the competitive advantage for these companies over others in the same industry in light in the ongoing fierce competition among industrial firms nowadays The study also recommended working towards supporting the infrastructure for implementing JIT, in addition to conducting other relevant studies to identify the significance of implementing other management accounting s such as target costing (TC) and activity-based costing (ABC) and demonstrating their impact on achieving competitive advantage for industrial firms, and comparing the results of future studies with those of this study Key words: just-in-time (JIT) production ; competitive advantage; public shareholding industrial companies in Jordan Introduction Industrial companies in Jordan are a main pillar in the kingdom's economy as they play an essential role in its support The recent industrial growth witnessed in Jordan has led to stronger competition between local firms in supplying the Jordanian customers with the best products which are comparable to imported products in terms of cost, quality and price, in order to generate earnings which help companies improve their financial position on one hand, and achieving competition advantage over other companies on the other hand Companies in general, and industrial ones in particular, endeavor to improve their financial position and performance in order to ensure their continuity and capability of competing with others in the market COPY RIGHT 202 Institute of Interdisciplinary Business Research 883

2 In light of the rapid technological developments and intensifying competition in international markets it became difficult for organizations which do not adopt effective competition strategies to survive in an environment with such complexities and consistent changes This has led organizations to direct their attention towards developing competition strategies that guarantee their continuity and superiority over competitors Therefore, it became vital for organizations to seek means of achieving their main goals without resorting to the traditional method of raising the prices of their products in order to generate maximum earnings in short periods of time and blaming such act on increasing costs; this method is proven to be weakening companies' ability to compete in the market The most effective method, however, is to reduce products' costs and improve their quality This can be realized by monitoring and controlling costs, searching for cheaper alternative production inputs, rationalizing the consumption of available resources through cutting indirect costs without affecting the quality of the end product, or finding ways that ensure optimal use of production elements This shall lead to cost reduction, quality improvement and on-time delivery to clients JIT production is one way to achieve the above mentioned targets altogether The researchers perceive that achieving the goals of Jordanian industrial firms through adopting advanced techniques such as JIT would have positive reflections on the kingdom's economy by realizing a management accounting target represented by ensuring the continuity of Jordanian industrial firms and overcoming fierce competition From the above, the study problem is centered around answering this main question: Is there an effect for implementing JIT on achieving competition advantage for public shareholding industrial companies in Jordan? The significance of this study is demonstrated by addressing a vital issue for organizations currently, as it provides an insight on the importance of JIT and its contribution to achieving competitive advantage for organizations The theoretical contribution of this research was through the utilization of a set of new dimensions (production cost, product quality and financial performance) in measuring the dependant variable (achieving competitive advantage) that was not used by preceding studies This constitutes a new addition to conceptual accounting literature 2 Conceptual framework & previous studies The definition of corporate competition is centered around the ability to satisfy the various needs of customers through providing quality products and services that could penetrate into international markets The British definition of competition provides that it is "the ability to produce goods and services of a good quality at the right price and in the right time" ie the ability to satisfy customer needs more effectively than other organizations (Wadee', 200) Also, (Fahey, 989) defined competitive advantage as "anything that favorably distinguishes a firm or its products from those of its competitors in the eyes of its customers or end-users" (Haydar, 2000) sees that the term 'competitive advantage' refers to the firm's ability to draft and apply strategies that place it in a favorable position over other firms in the same domain On the other hand, production costs and structure are among the main determents of competitive advantage due to their impact on setting the prices of end-products and services Production costs are based on the prices of production inputs such as raw materials; labor costs and availability; labor training, qualifications and utilization of modern technologies; as well as other production requirements such as electricity, water, fuel, etc Thus competitive advantage is negatively correlated with production costs, ie a company's competitive advantage increases when such company is able to cut its production costs (Al-sadeq, 999) Furthermore, competitive advantage can be enhanced through improving the quality of its products by considering the quality of production inputs and personnel's skills and adaptation to modern technology (Chen& HTTsou) Rapid technological and economical developments during the past two decades, as well as intensifying competition between companies, have forced company managements to set modern programs for improving productivity and change the traditional management and planning schemes (Abu assar, 2008) The technological developments have contributed to lifting production levels and cutting costs across industries, particularly major ones (Mjalli, 2003) The rapid changes in business environments have obliged organizations to draw their macro strategies on the preferences of quality dimensions and competitive priorities in order to face fierce competition which constitutes a heavy burden on performance (Al-o'aimy, 2007), as the success or failure of organizations depends on competition Also, (Abboud, 2005) affirmed that an organization's ability to outperform its competitors is demonstrated in one or more of the strategic performance dimensions (cost, time, innovation, quality, flexibility, dependency and delivery), whereas (Blunas, 2009) sees competitive advantage measured by low cost, quality, and on-time delivery However, (Al-zu'bi, 999) & (Al-Ghwairi, 2004) pointed out that achieving competitive advantage is based on these dimensions: (lowest cost, excellence, creativity, growth and alliances) And (Briole, 2000) set the dimensions for competitive advantage in the following: product quality, financial performance, market control, creativity, development and operation efficacy On the other hand, JIT plays a major role in supporting organizations' strategic goals as it contributes to increasing production efficiency through cutting down the costs of storage and operations, which leads to reducing the costs of end-products It also helps improve products' quality and efficacy and develop them accordance to COPY RIGHT 202 Institute of Interdisciplinary Business Research 884

3 customers' needs at the right time, which enables organizations to boost their sales and enhance their financial performance through achieving high productivity that generates greater earnings, thus achieve a strategic advantage and outperform other firms in the same sector or industry Several previous studies, such as (Sawalmeh, 2006); (Matarneh & Bashtawi, 2007) & (Mohammad Mousa, 2008), pointed out that JIT is one of the modern s which help organizations realize their goals in light of the rapid changes in the business environment so that they would achieve a competitive advantage that ensure their continuity and superiority over competitors, and this has been increasingly under the spot light across all economic sectors Matarneh & Bashtawi (2007) affirmed that JIT was a revolution in inventory monitoring s The definition of this has expanded lately; Al-matyouti (2003) defined it as a whose concept is inspired by the notion that nothing is produced unless it is needed also Al-bakri (999) defined it as the production of endproducts, delivery on sale time, assembly of parts in time to be placed inside the end-product, and the purchase of raw materials in time for manufacturing parts Schroeder (989) sees it as access today and use tomorrow Hay (988) views that this has become a philosophy of manufacture, or a philosophy of waste elimination within the production process, and such philosophy is inseparable Furthermore, Matarneh and Bashtawi (2007) pointed out that JIT is a technique that depends on technology to eliminate waste in the time of production, purchase time and materials in a manner that leads to lowering the costs of the production process and satisfying customers' needs in the right time with the right quantities Based on the above definitions, JIT can be defined as a that draws on the purchase, production and delivery on time depending on customers' needs in order to reduce inventory costs and any other unnecessary costs within the production process; leading to a boost in profitability through optimal use of available production resources and elements, which enables organizations to achieve a competitive advantage that ensures their continuity and survival in a business environment that is becoming more complex and changing rapidly JIT has been under the spotlight in accounting literature and was addressed by several studies due to the vital role it plays in reducing costs in general and inventory costs in particular In his study, Sawalmeh (2006) aimed to identify the results of implementing this and the problem faced by industrial companies when they apply it through evaluating the implementation of JIT and the surpluses achieved by companies as a result of its implementation The study concluded that the implementation of JIT had resulted in positive outcome (elimination of waste, saving inventory costs, saving costs of raw materials, quality improvement, multi-skilled employees) However there were some negative outcomes from the implementation of JIT such as difficulties in supplying required quantities on time, impacts on relations with suppliers due to failure to deliver products on time, as well as lack of proper awareness on the implementation of the Matarneh & Bashtawi (2005) aimed to identify the effects of implementing JIT on reducing production costs The study also examined production and costs with an emphasis on JIT analysis and its benefits in quality control and improving the efficiency of the manufacturing process which supports maximal success of production strategies The researchers reached a number of results including that the implementation of JIT leads to the elimination of waste in the production process through the disposal of unnecessary activities along with the production process which helps reduce production costs and improve operational performance efficacy thus improve the quality of products and placing the organization in a good competition position which ensures its continuity and its market change in the current environment Similarly, (Mousa, 2008) concluded that the main basis for the implementation of JIT are: depending on a limited number of suppliers, remodeling the factory structure, reducing preparation time, total quality control, and having skilled and flexible staff The study results also showed that the elimination of inventory rids cost accountants from selecting an inventory assessment tool (FIFO, LIFO, WA) Furthermore, the study concluded that the benefits of JIT implementation include cost reduction (inventory, storage, transport, handling and product obsolescence costs), waste reduction as a result of total quality control, increased staff productivity due to teamwork, and a reduction in preparation time which allows for the economy production of small batches which increases the organization's ability to satisfy the needs of customers In a later study, (Matarneh & Bashtawi, 2007) aimed to identify the effects of implementing JIT on the operational performance of industrial companies in Jordan and to find out its impacts on reducing production costs as well as the concerns which limit the implementation of this in Jordanian industrial companies The researchers found that the implementation of JIT requires a restructure of production processes in Jordanian industrial companies to enhance their operational performance Also, the implementation of JIT leads to lowering direct costs and improving products' quality which improves the company's competitive advantage Jraisat (2004) aimed to determine the extent of implementing JIT within the food industry in Jordan, identify the dimensions of applying this in companies and examine potential benefits of its implementation The study found that 5% of Jordan's 6 food companies are implementing the JIT, and that there is a correlation between JIT and profitability COPY RIGHT 202 Institute of Interdisciplinary Business Research 885

4 Based on the above, and according to the results of previous studies, the study hypotheses are as follows: Main hypothesis: There is no statistically significant effect for the implementation of just-in-time (JIT) production on achieving competitive advantage for public shareholding industrial companies in Jordan Sub-hypothesis : There is no statistically significant effect for the implementation of JIT on cost reduction Sub-hypothesis 2: There is no statistically significant effect for the implementation of JIT on product quality Sub-hypothesis 3: There is no statistically significant effect for the implementation of JIT on financial performance 3 Study Model Independent variable Implementation of just-in-time (JIT) Dependant variable Competitive advantage: - Less costs (cost leadership strategy) - Products quality (excellence strategy) - Financial performance (growth strategy) 4 Methodology 4 Population and Sample Survey is the main research method of this study One group was selected to collect primary data, and a personal scanning tool (questionnaire) was used to measure the effects of implementing JIT on achieving competitive advantage for public shareholding industrial companies in Jordan The study sample consisted of financial officers and accountants working for the said companies The questionnaire was distributed on 40 operating industrial companies in Jordan (3 questionnaires each) 05 questionnaires were recovered; 9 disqualified as not eligible for analysis,and 6 others disqualified as extreme values As a result, questionnaires were analyzed 42 Instrumentation The researchers developed the study questionnaire drawing on relevant literature and consultations with experts in both academic and professional fields The questionnaire included 24 items In measuring the independent variable (implementation of JIT ) the researchers drew on (Sawalmeh, 2006) and (Mousa, 2008) and developed the following 6 items: "the organization depends on a limited number of raw material suppliers"; "the organization's management has strong and solid relations with suppliers which enable it to satisfy its resource needs when required"; "the organization adopts a preventive maintenance (PM) carried out by production staff themselves"; "all production stages are completed on time, particularly when the organization receives external orders"; "there are terms and conditions set by the organization for hiring skilled and multi-tasked personnel"; "the organization holds training programs for its personnel to improve their skills and capabilities Items 7-24 were used to measure the dimension of the dependent variable (competitive advantage) as follows: items 7-2 measured the product costs dimension; items 3-9 measured product quality and items measured the financial performance dimension The researchers developed these items depending on (Hawari, 2004); (Matarneh & Bashtawi, 2007); (Anbar et al, 20) as follows: Product cost: this dimension was measured by items 7-2: "limited time and resources are required for the production process"; "the organization's management seeks to reduce inventory to minimal levels in order to avoid the risks and costs of maintaining inventory"; "the organization's management works to lower or eliminate faults and wastes in the production process"; "high costs are required for the preparation and training of staff and management as well as dealings with suppliers"; "production can be stopped in case of the detection of faulty units, and this incurs additional costs on the organization" 2- Product quality: this dimension was measured by items 3-9: "the company cares for the quality of raw materials supplied by external suppliers"; "the company considers customers' opinions and suggestions on its products"; "the company requires the early detection of faulty products through feedback"; "the organization works to detect faulty products before they reach customers"; "every employee is responsible for his/her work across all production stages and product checks before delivery"; "granting trust and responsibility to workers helps develop their creative capabilities which reflects on the quality of products"; "the companies which implement JIT would stop the production line if any problems were detected before moving to the next stage of production" 3- Financial performance: this dimension was measured by items 20-24: "the company's policy focuses on reducing costs as a basis for competition"; "the company's sales rate is high compared to other companies in the same domain"; "the company's management always seeks to boost its financial position through generating high COPY RIGHT 202 Institute of Interdisciplinary Business Research 886

5 productivity to achieve targeted earnings"; "the company's management seeks to attract the biggest possible number of customers"; "the company's market share is high compared to other companies in the same domain" Responses were scaled on a five-level Likert scale with one point given for the response "strongly agree"; two points for the response "agree"; three points for the response "neutral/ neither agree nor disagree"; four points for the response "disagree"; and five points for the response "strongly disagree" 43 Validity and Reliability The questionnaire was viewed by a panel of experts to determine its validity and take notes Then it was consequently modified until it reached its final draft Chronbach's alpha coefficient was used to determine the tool's reliability and consistency in the study population's responses This test is based on internal consistency and reliability of the tool's items; its results were as follows: Independent variable: implementation of JIT (ɑ = 0748) Dependent variable: competitive advantage (ɑ = 0692) And the results for each of the dependent variable dimensions were as follows: product costs (ɑ = 0806); product quality (ɑ = 078); and financial performance (ɑ = 0739) These results suggest high levels of reliability for the measurement tool (Sekaran, 2003) 44 Statistical Treatment The researchers used the descriptive approach to describe the study variables Inferential statistical analysis was used to analyze data and test hypotheses Simple regression was used to determine the correlation between the study variables and to test hypotheses 44 Result Analysis and Hypotheses Testing The study used descriptive statistical analysis for the items of a tool to measure the implementation of JIS by Jordanian industrial companies as an independent variable, as well as describing the dependent variable (achieving competitive advantage and its three dimensions- product costs, product quality and company's financial performance- as a single package) in addition to testing study hypotheses and outlining the main results and recommendations 442 Descriptive Analysis of Study Variables - Descriptive analysis of independent variable (JIT implementation) items: Descriptive analysis was applied on the six items concerning the implementation of JIT by shareholding industrial companies in Jordan The descriptive analysis showed that the means of all items concerning the implementation of JIT by shareholding industrial companies in Jordan were above 38, which suggests that the tendency of sample members towards implementing JIT was above the general average of Likert scales (3) which shows that there is a general satisfaction towards implementing this among sample members 2- Descriptive analysis of independent variable (competitive advantage) and its dimensions: The descriptive analysis showed that the mean for competitive advantage achievement was 450 with a standard deviation of 0397, which is a good level for the respondents' perceptions on this variable The mean for this variable was calculated for its three dimensions as a whole The means for product costs, product quality and financial performance were 4; 433 and 426 respectively Therefore this variable is perceived by respondents as very important 443 Inferential Statistical Analysis of the Study Variables The two-way analysis of variance confirmed that the correlation between the independent variable (implementation of JIT ) and the dependent variable (competitive advantage) was high and statistically significant Table shows that the correlation between the two variables reached 0835 with a statistical significance p=0000 at the level 00 As for the two-way analysis of variance between the independent variable (implementation of JIT ) and first dimension of the dependent variable (product costs), Table 2 shows that the correlation was 0460 with a statistical significance p= 0000 at the level 00 As for the two-way analysis of variance between the independent variable (implementation of JIT ) and second dimension of the dependent variable (product quality), Table 3 shows that the correlation was 0696 with a statistical significance p=0000 at the level 00 As for the two-way analysis of variance between the independent variable (implementation of JIT ) and third dimension of the dependent variable (Financial performance), Table 4 shows that the correlation was 0469 with a statistical significance p=0000 at the level 00 The analysis of correlation between variables shows that the correlation between the independent variable and the dependent variable with its three dimensions is high 5 Testing Hypotheses and Discussion of Results Simple regression was used to test the study hypotheses because the study contained one independent variable and one dependent variable and used an interval scale to measure the effect of the independent variable (implementation COPY RIGHT 202 Institute of Interdisciplinary Business Research 887

6 of JIT ) on the dependent variable (competitive advantage) as a whole, in addition to measuring the effect of the independent variable on each dimension of the dependent variable separately Main hypothesis test: There is no statistically significant effect for the implementation of just-in-time (JIT) production on achieving competitive advantage for public shareholding industrial companies in Jordan Table 5 shows that the independent variable has a positive effect on the dependent variable (β= 063), t = 4243 at the statistical significance =0000 Therefore we reject the null hypothesis and accept the alternative hypothesis which provides that there is a statistically significant effect for the implementation of just-in-time (JIT) production on achieving competitive advantage for public shareholding industrial companies in Jordan Sub-hypothesis test: There is no statistically significant effect for the implementation of JIT on cost reduction Table 6 shows the results of the simple regression analysis which confirmed that the independent variable has a positive effect on cost reduction (β= 045), t = 4863 at the statistical significance = 0000 Therefore we reject the null hypothesis and accept the alternative hypothesis Sub-hypothesis 2 test: There is no statistically significant effect for the implementation of JIT on product quality Table 7 shows the results of the simple regression analysis which confirmed that the independent variable has a positive effect on product quality (β= 0445), t = 4983 at the statistical significance p= 0000 Therefore we reject the null hypothesis and accept the alternative hypothesis Sub-hypothesis 3 test: There is no statistically significant effect for the implementation of JIT on Financial performance Table 8 shows the results of the simple regression analysis which confirmed that the independent variable has a positive effect on Financial performance (β= 0445), t = 4983 at the statistical significance p= 0000 Therefore we reject the null hypothesis and accept the alternative hypothesis 6 Results and recommendation The simple regression model confirmed that the implementation of the just-in-time (JIT) production in industrial companies would bring them a competitive advantage The study found that when the independent variable (implementation of JIT production in industrial companies) increases by one unit, then the competitive advantage of these companies would increase by 063 and vice versa As for testing the sub-hypotheses of the study's main hypothesis we found that the implementation of JIT production has positive effects on cost reduction, ie when the implementation of JIT production increases by one unit, then the cost reduction would increase by 045 and vice versa, t=4863 at the statistical significance p= 0000 This also confirms that the implementation of JIT by industrial companies would lower production costs When testing the second sub-hypothesis it appeared that the implementation of JIT production has positive effects on product quality, ie when the implementation of JIT production increases by one unit, then the cost reduction would increase by 0560 and vice versa, t=905 at the statistical significance p= 0000 The study also found that the implementation of JIT production has positive effects on the financial performance of companies, ie when the implementation of JIT production increases by one unit, then the cost reduction would increase by 0445, t=0445 at the statistical significance p= 0000 This result highlights the importance of using this by industrial companies due to its role in improving its financial performance to face the fierce competition of nowadays Considering the results of this study, decision makers are recommended to adopt and implement the JIT production due to the major positive role it plays in cost reduction, product quality and financial performance, which leads to achieving a competitive advantage for companies over other firms in the same domain or industry in light of the intensifying competition witnessed by the industrial sector currently The study also recommends working towards enhancing infrastructure in terms of implementing this, as well as holding educational and training courses for workers and employees to raise their awareness on how to apply the, its importance and its role in lowering costs, improving quality of products and maintaining sale prices in light of the intensifying competition among companies in the market which would reflect positively on financial performance Also, it is necessary for governments to set legislations that encourage industrial companies to implement the JIT production due to its potential positive reflections on the national economy and local communities from economic and social points of view As for future research, the researchers recommend conducting other relevant studies to identify the significance of implementing other management accounting s such as target costing (TC) and activity-based costing (ABC) and demonstrating their impact on achieving competitive advantage for industrial firms, and comparing the results of future research with those of this study COPY RIGHT 202 Institute of Interdisciplinary Business Research 888

7 References Abu assar, Mohammad, Management Accounting, Dar Wa'el Publishing, second edition, 2008 Al-Ghwairi, Omar, The Impact of Strategic Information System on Achieving Competitive Advantage, A Field Study on Royal Jordanian Airlines and Mobilecom, Unpublished MA Thesis, Public Administration Dept, Mu'ta University, 2004 Al-o'aimy, Salah Abdelqader, How Organizations Can Achieve Their Competitive Advantage?, A Research submitted to the Second Scientific Conference at Israa University, Jordan, 2007 Al-Matyouti, Mohammad, "JIT System Philosophy, Elements and its Application Mechanism Requirements", University Researcher Journal, Ibb University, Republic of Yemen, o 6, 2004 Al-Sadeq, Ali, Arab Economies' Capability of Competence in the International Markets", Arab Monetary Fund, Economic Policies Institute, Workshops Researches and Discussions, o 5, 999, UAEPP Al-Sheeshani, Amer, The Impact of IT and Advance Communications Technology in Earning Competitive Advantage: Field Study on the Jordanian Cellular Communications Company (Mobilecom), Unpublished MA Thesis, Al al-bayt University, 2004 Al-Zu'bi, Hassan, The Impact of Using Strategic Information System on Building and Developing Competitive Advantage, and Achieve Competitive Excellence: Applied Study on the Jordanian Banks Listed in Amman Stock Exchange, Unpublished PhD Thesis, Baghdad University, 999 Anbar, Ibrahim Shalash, et al, "The Impact of E-Marketing in Achieving Competitive Advantage for the Jordanian Drug Companies", Field Study, Derasat Journal, Management Sciences, vol 38, no, 20 Balwanas, Abdullah, The Role of Intellectual Capital in Achieving the Competitive Advantage, published Research, 2009 Basili, Makram, Cost Control and Accounting (Quantitative Introduction), Al-Asriyah Library, 2007 Briole Alain et Craipeau Sylvie(2000), Le groupware :Une techniquestructurante pourles PME de service, Revue Réseaux,vol8 Fahey, Liam, The Strategie Planning Management Reader, Prentice Hall Inc, ew Jersey, 989 Hawari, Me'raj, The Role of Information Systems in Achieve Competitive Advantage, A Study on the Algerian Industrial Sector, vol 4, 2004 Haydar, Ma'ali, Information Systems (Introduction to Achieve Competitive Advantage), al-dar al-jame'iyyah, al- Monofiyyah University, Egypt, 2002 Hay,SJ The Just-in- Time Break through, ew York: john Willy and sons, 988 Horngren Datar Foster, Cost Accounting ewjersey,2006 a Managerial Emphasis, twelfth edition, Person, Prentice Hall, Jraisat, Rola, Applying Just In Time System in Food Industrial Sector in Jordan, MA Thesis, the Hashemite University, 2004 Chen& HTTsou,"Information Technology Adoption For Service Innovation Practices And Competitive Advantage : The Case Of Financial Firms ", Information Research Vol 2, o 3,2007 COPY RIGHT 202 Institute of Interdisciplinary Business Research 889

8 Matarneh, Al-Beshtawi, Ghassan and Suleiman, Just-In-Time (JIT) Production Cost System in the Industrial Organizations and Its Role in Strategic Decision Making, The Fourth Scientific Conference, Pioneering & Innovation, Business Strategies Facing Globalization Challenges, Philadelphia University, 2005 Matarneh, Al-Beshtawi, Ghassan and Suleiman, "The Impact of Applying Just-In-Time (JIT) Production Cost System on the Operational Performance in the Jordanian Industrial Companies", Derasat Journal, Management Sciences, vol 34, no 2, 2007 Mjally, Jameel hasan, Technology Change and Its Impact on Production and Cost, Unpublished MA Thesis, Al al-bayt University, Jordan, 2003 Mousa, Mahmoud, Timely Production, al-azhar University, Faculty of Commerce, Higher Studies, 2008 Sawalmeh, Ra'ed, Evaluating the Application of Just In Time System System: Field Study on Industrial Companies (QIZ) in Jordan, Unpublished MA Thesis, Al al-bayt University, Jordan, 2006 Schroeder,RG, Operation management, MC Graw-Hill Book company, ew York, 985 Sekaran, U (2003) Research Methods for Business, a skill Building Approach ew York: John Wiley and Sons, Inc Wadee', Mohammad Adnan, "Determinants of Competitive Advantage of Arab Countries in the International Markets", Researches and Discussions, Tunisia, 200 COPY RIGHT 202 Institute of Interdisciplinary Business Research 8

9 Annexure Table : Correlation between the independent variable (implementation of JIT ) and the dependent variable (competitive advantage) Implementation of JIT Competitive advantage Implementation of JIT Pearson Correlation 835(**) Sig (2-tailed) 000 Competitive advantage Pearson Correlation 835(**) Sig (2-tailed) 000 ** Correlation is significant at the 00 level (2-tailed) Table 2: Correlation between the independent variable (implementation of JIT ) and first dimension of the dependent variable (product costs) Implementation of JIT product costs Implementation of JIT Pearson Correlation 460(**) Sig (2-tailed) 000 product costs Pearson Correlation 460(**) Sig (2-tailed) 000 ** Correlation is significant at the 00 level (2-tailed) Table 3: Correlation between the independent variable (implementation of JIT ) and second dimension of the dependent variable (product quality) Implementation of JIT product quality Implementation of JIT Pearson Correlation 696(**) Sig (2-tailed) 000 product quality Pearson Correlation 696(**) Sig (2-tailed) 000 ** Correlation is significant at the 00 level (2-tailed) Table 4: correlation between the independent variable (implementation of JIT ) and third dimension of the dependent variable (Financial performance) Implementation of JIT Financial performance Implementation of JIT Pearson Correlation 469(**) Sig (2-tailed) 000 Financial performance Pearson Correlation 469(**) Sig (2-tailed) 000 ** Correlation is significant at the 00 level (2-tailed) COPY RIGHT 202 Institute of Interdisciplinary Business Research 89

10 Table 5: Main hypothesis test: There is no statistically significant effect for the implementation of just-in-time (JIT) production on achieving competitive advantage Model Unstandardized Coefficients Standardized Coefficients t Sig 95% Confidence Interval for B Std Error B Beta Upper Lower (Constant) Implementation of just-in-time (JIT) production a Dependent Variable: achieving competitive advantage Table 6: Sub-hypothesis test: There is no statistically significant effect for the implementation of JIT on cost reduction Model Unstandardized Coefficients Standardized Coefficients t Sig 95% Confidence Interval for B Std Error B Beta Upper Lower (Constant) Implementation of just-in-time (JIT) production a Dependent Variable: cost reduction Table 7:Sub-hypothesis 2 test: There is no statistically significant effect for the implementation of JIT on product quality Model Unstandardized Coefficients Standardized Coefficients t Sig 95% Confidence Interval for B Std Error B Beta Upper Lower (Constant) Implementation of just-in-time (JIT) production a Dependent Variable: product quality Table 8: Sub-hypothesis 3 test: There is no statistically significant effect for the implementation of JIT on Financial performance Model Unstandardized Coefficients Standardized Coefficients t Sig 95% Confidence Interval for B Std Error B Beta Upper Lower (Constant) Implementation of just-in-time (JIT) production a Dependent Variable: Financial performance COPY RIGHT 202 Institute of Interdisciplinary Business Research 892