Effects of effective ERP system utilization on enterprise economic sustainability through product life cycle cost control Open Access

The COVID-19 pandemic has had a tremendous influence on the world of business, slowing economic growth significantly and providing several difficulties for the expansion and sustainability of businesses (Chakraborty and Maity, 2020). Organizations from many industries and nations have been impacted by the pandemic's disruptive consequences, which range from supply chain interruptions to decreased customer demand (Fares and Lloret, 2023). Businesses all across the world are struggling with previously unheard-of uncertainty, budgetary constraints, and operational challenges. Therefore, it has become crucial for businesses to grasp the dynamics of economic sustainability and put in place efficient methods to get through such crises (Hobbs, 2021).

Due to the COVID-19 pandemic, the industrial sector, which is an essential part of the world economy, has experienced serious setbacks (Nayak et al., 2022). Industrial sector disruptions affected supply networks and production facilities, which jeopardized economic stability and hampered productivity (Bataineh et al., 2023). It is impossible to overstate the sector's significance since it helps grow both developed and developing nations by generating export cash, advancing technology, and creating jobs. Understanding the unique issues, the industrial sector is facing and coming up with creative ideas to get it working again and staying sustainable have therefore become crucial imperatives for economic recovery (Hikal et al., 2024).

By utilizing digital solutions, cutting-edge technology, and information-based strategies in the face of the pandemic's problems, certain industries showed resilience (Fares and Lloret, 2023). Controlling product life cycle costs is one such tactic that helps firms improve their decision-making processes and optimize their cost management. Businesses may find inefficiencies and simplify processes by using new methods, which improves sustainability and gives them a competitive edge. The effectiveness of these tactics shows how crucial it is to include digital tools and technology in order to lessen the negative impacts of crises on business performance (Al-Hawamleh et al., 2024).

Businesses that want to overcome obstacles and maintain long-term viability must implement contemporary technology immediately during times of crisis, like the COVID-19 pandemic (Nayak et al., 2022). Product life cycle costing is one of the many business procedures that can be managed with the use of enterprise resource planning (ERP) systems, in particular (Chopra et al., 2022). ERP systems offer integrated solutions that let businesses enhance productivity, simplify operations, and make wise decisions based on current information. Enterprises can improve their financial stability and attain long-term sustainability by successfully regulating product life cycle costs using ERP systems (Chopra et al., 2022).

To maintain corporate operations and promote competitiveness, product life cycle cost management is essential (Leng et al., 2020). Organizations may optimize resource allocation, reduce waste, and increase profitability by properly controlling costs across the product life cycle (Leng et al., 2020). Additionally, businesses that use contemporary technology, such as ERP systems, might open up fresh doors for innovation and obtain a competitive advantage. Enterprises are able to make data-driven choices and quickly adjust to shifting market dynamics because of the incorporation of modern (Mansour et al., 2024).

Despite the aforementioned benefits, Al-Harthi and Saudagar (2020) argue that for ERP systems to be used effectively in the industrial sector, system requirements must be integrated, data quality must be maintained, and thorough staff training must be offered. By taking care of these issues, industrial firms may use ERP systems as effective instruments to boost operational effectiveness, improve resource allocation, and gain an edge in a competitive market.

The utilization of ERP systems and enterprise economic sustainability through the management of product life cycle costing provide a research gap for the Jordanian industrial sector (Jaradat et al., 2022; Bataineh et al., 2023). The interplay of these components in the Jordanian setting as a developing nation has received relatively little attention, despite studies highlighting the significance of these aspects for sustainability (Jaradat et al., 2022; Bataineh et al., 2023). It is imperative to close this knowledge gap and learn how to use ERP systems for control of product life cycle costing and economic sustainability for the Jordanian industrial sector because the pandemic has highlighted the need for the adoption of cutting-edge technologies and successful strategies to deal with such crises (Nayak et al., 2022).

Through the efficient management of product life cycle costs, this research intends to investigate the impacts of effective ERP system use on the economic sustainability of organizations. The industrial sector, especially in emerging nations like Jordan, needs to understand the potential advantages of putting new technology and cost-optimization tactics into practice. The industrial sector may conceive and create cutting-edge solutions that support sustainability and promote economic growth by comprehending the consequences and opportunities involved with reducing product life cycle costs. This study aims to add to the body of knowledge in this field and offer insightful information to scholars, policymakers, and industry practitioners.

As businesses become more aware of the need to strike a balance between economic development and environmental and social responsibility, the idea of economic sustainability has become more popular in the industrial sector in recent years. Because of its resource-intensive activities, the industrial sector confronts particular difficulties in ensuring economic sustainability (Elf et al., 2022). These difficulties include escalating rivalries, shifting consumer demand, growing raw material and energy costs, and changing regulatory frameworks (Elf et al., 2022).

Organizations in the industrial sector have put numerous solutions into practice to solve these issues and promote economic sustainability. Adopting sustainable manufacturing methods is one such tactic (Abdul-Rashid et al., 2017). This entails including environmental factors in every stage of production, from conception to disposal (Awan et al., 2021). Organizations may increase operational effectiveness and save costs, resulting in long-term economic sustainability, by maximizing resource use, cutting waste, and limiting environmental consequences.

Additionally, innovation and diversity have become crucial tactics for maintaining economic viability in the industrial sector (Andersen and Gulbrandsen, 2020). Businesses are looking for ways to grow into new markets, diversify their product lines, and create cutting-edge solutions to social and environmental problems. This not only helps firms maintain their competitiveness in a business environment that is changing quickly, but it also creates new income sources and promotes resilience.

Organizations may acquire a thorough grasp of their economic sustainability performance in the industrial sector by combining these techniques with the use of modern technology (Jaradat et al., 2024a). As a result, they are better equipped to recognize opportunities for development, define objectives, and come to educated judgments that promote economic sustainability while taking the larger social and environmental context into account (Awan et al., 2021).

The adoption of Material Requirements Planning (MRP) systems to synchronize production processes may be traced back to the 1960s and 1970s, which is when Enterprise Resource Planning (ERP) systems first appeared. These systems were centered on managing commodities and inventories (Zhao and Tu, 2021). MRP became Manufacturing Resource Planning II (MRP II) in the 1980s, encompassing finance, human resources, and sales (Rashid et al., 2002). In the 1990s, integrated systems that consolidated data exchange between departments gave rise to the name “ERP” (Rashid et al., 2002). Modern ERP systems are crucial tools nowadays because they include functions including product life cycle costing, supply chain and customer relationship management, and financial management (Chopra et al., 2022).

The industrial sector has greatly benefited from the use of ERP systems in terms of cost analysis and control across the product life cycle (Chopra et al., 2022). These systems give businesses the ability to collect and examine cost information at every level, enabling them to make wise decisions about pricing, process enhancements, and resource allocation. ERP systems improve accuracy and efficiency by integrating diverse departments and functions, preventing double data entry, and guaranteeing consistent cost information (Weerasekara and Gooneratne, 2023). Organizations can track expenses and take prompt action with real-time data and reporting capabilities, which enhance financial performance and competitiveness (Weerasekara and Gooneratne, 2023).

ERP systems are essential for fostering business and economic sustainability. They offer a comprehensive perspective on business operations, which improves resource management and optimization. Cost savings, enhanced operational effectiveness, and increased profitability are all impacted by this. Organizations may now uncover cost-saving possibilities, simplify processes, and make well-informed investment decisions by having access to real-time data and powerful analytics (Jaradat et al., 2024b). ERP systems also encourage accountability and transparency in financial reporting and compliance, producing precise and timely statements that win over stakeholders and foster confidence (Chopra et al., 2022).

Enterprise Resource Planning (ERP) systems in the industrial sector must be used effectively, which depends on a number of important criteria. First off, system-specification integration is essential for the effective deployment and use of ERP systems (Zhao and Tu, 2021). This entails matching the specific demands of the industrial organization with the functions and requirements of the ERP system. It is possible to create seamless integration by tailoring the system to the company's operational procedures and business objectives. This enables effective data flow and decision-making across the organization.

Secondly, data quality plays a crucial role in determining how well ERP systems work in the industrial sector. For the purpose of developing insightful conclusions and promoting well-informed decision-making, accurate and trustworthy data is crucial (Alduais et al., 2023). To guarantee the accuracy, consistency, and completeness of data within the ERP system, organizations must create strong data governance processes. Industrial businesses may increase process effectiveness, boost forecasting accuracy, and optimize resource allocation by upholding high data quality standards, which will ultimately result in increased production and profitability.

Additionally, in the industrial sector, personnel training is essential for leveraging the advantages of ERP systems (Zhao and Tu, 2021). To educate and empower staff to efficiently use the features of the ERP system, comprehensive training programs should be put in place. Organizations may promote an ERP adoption culture, promote user involvement, and reduce change resistance by providing the staff with essential training and information (Chopra et al., 2022). Well-trained staff may make use of the ERP system's features to automate repetitive jobs, optimize processes, and communicate more effectively, which boosts output and enhances operational effectiveness.

Over the course of several decades, Product Life Cycle Costing (PLCC) has developed into an essential component of cost control in the industrial sector. PLCC, which was first concentrated on manufacturing expenses, has since broadened to include R&D, marketing, distribution, and after-sales services (Stark, 2022). The need to track costs at each step of the product life cycle was first understood by pioneers in cost accounting, which prompted improvements in PLCC methods in the 1970s and 1980s.

Cost management entered a new phase with the integration of PLCC with Enterprise Resource Planning (ERP) systems in the late 20th century. ERP systems made it easier to collect, analyze, and use real-time data, which enabled businesses to make wise decisions and cut costs across the product life cycle (Barlette and Baillette, 2022).

Product Life Cycle Costing (PLCC) offers the industrial sector a number of advantages by enabling businesses to reduce expenses and improve their competitiveness (Bataineh et al., 2023). Improved cost control is one of PLCC's main benefits. Organizations may find areas for cost reduction and process improvement by recording and evaluating expenses at each stage of the product life cycle in order to acquire insights into cost drivers (Barlette and Baillette, 2022). Profitability and operational effectiveness both rise as a result.

Additionally, PLCC supports businesses in making wise pricing choices. Organizations may create precise pricing structures that accurately represent the costs of manufacturing, marketing, and support services by knowing the expenses involved with each stage of the product life cycle (Stark, 2022). This ensures that things are priced fairly, taking into consideration both profit margins and cost recovery. In order to preserve market share and generate enough income to fund operations and promote development, firms must use effective pricing strategies (Bataineh et al., 2023).

PLCC significantly enhances decision-making within the industrial sector. By incorporating cost data from various departments and functions, organizations can make informed decisions regarding product development, resource allocation, and process improvements, thereby fostering a culture of data-driven decision-making that enhances efficiency throughout the enterprise (Stark, 2022; Barlette and Baillette, 2022). Overall, PLCC provides the necessary tools for businesses to make informed decisions, reduce costs, and increase productivity throughout the product lifecycle. By considering costs at each stage, organizations can achieve economic sustainability, deliver value to customers, and maintain a competitive edge in the market.

Systems for enterprise resource planning (ERP) are essential for boosting the industrial sector's operational effectiveness and competitive advantage. It is suggested to increase the use of ERP systems and overall organizational performance through system-specification integration, which aligns them with particular organizational needs and procedures (Qutaishat et al., 2023). Inventory control, production planning, and supply chain management are just a few of the numerous business operations that are managed by ERP systems (Chopra et al., 2022). Implementing an ERP system, however, does not ensure that it will be used effectively or that the desired advantages will be realized (Qutaishat et al., 2023). Integration of system specifications entails modifying the ERP system to match the particular requirements of the industrial sector, including real-time monitoring of manufacturing operations, inventory optimization, and production scheduling.

The industrial sector greatly benefits from the integration of ERP systems with particular system requirements. By gathering and processing information unique to the industry, it first increases data accuracy and dependability (Weerasekara and Gooneratne, 2023). Second, improving operational efficiency, streamlining workflows, and minimizing human interventions, which result in cost savings and increased productivity, may be achieved by aligning the ERP system with the specific procedures and needs of the industrial sector (Zhao and Tu, 2021). In addition, system-specification integration encourages improved decision-making by giving key stakeholders timely and pertinent information, empowering them to make wise decisions and effectively adapt to changing market conditions. The following hypothesis has been put forth in this context:

According to AlMuhayfith and Shaiti (2020), employee training is a systematic technique that aids staff members in acquiring demanding information and abilities that enhance their performance and position them for career growth. It encourages good transformation by fostering a culture of ongoing learning inside businesses (Jaradat et al., 2024c). Employee competency is considerably boosted by training in ERP systems, which increases productivity, efficiency, and decreases the amount of time spent on manual data input (Qutaishat et al., 2023). Additionally, with the right training, workers may access financial data remotely, allowing for more flexibility in their work hours (Jo and Park, 2023).

The efficient use of ERP systems in the industrial sector is significantly influenced by employee training (Beric et al., 2020). Employees can browse the system more efficiently and make the most of its capabilities because of their extensive awareness of its functionalities, modules, and linkages. Employees get the essential abilities and increase their comfort level and productivity through practical training (Mullins and Cronan, 2021).

Additionally, poor knowledge of the ERP system can result in errors and rework, which can cause delays and inefficiencies (Jaradat et al., 2024c). Training helps decrease these errors and rework. Employees are less likely to make mistakes and need rework if they are familiar with the system's functions and operations (Jo and Park, 2023). Last but not least, staff training provides adaptation to system changes because ERP systems frequently experience updates and upgrades to include new features or fix problems. Employee training is essential for optimizing the efficiency of ERP systems in the industrial sector by helping users keep current with these changes and adapt to new versions (Qutaishat et al., 2023).

Previous studies have demonstrated that training programs are critical in providing staff with the skills needed to properly traverse and use the features of ERP systems (Velcu, 2007; AlMuhayfith and Shaiti, 2020). Numerous studies have emphasized the beneficial relationship between staff development and the effective adoption and use of ERP systems. For instance, Velcu (2007) discovered that firms that made investments in thorough training programs had greater levels of ERP system performance and use. Additionally, a meta-analysis of research by AlMuhayfith and Shaiti (2020) revealed that staff training had a substantial impact on the efficient usage of ERP systems. In this context, the hypothesis has been proposed as follows:

The link between ERP systems and product life cycle costing has been the subject of several empirical studies, giving insight on both the potential advantages and difficulties of their adoption. In the manufacturing sector, for instance, Seethamraju (2015) observed that the deployment of an ERP system considerably improved the accuracy and efficiency of product costing over the whole life cycle. Similar to this, Pohludka et al. (2018) showed that ERP systems in the automotive sector offer better cost control and allocation, improving economic sustainability.

The integrated aspect of ERP systems has been cited by academics as a major reason for the systems' favorable impact on product life cycle costs. ERP systems provide a complete perspective of expenses over the whole life cycle by combining data from many departments and activities, enabling real-time monitoring, analysis, and informed decision-making (Oghazi et al., 2018). The optimization of resource allocation, the elimination of unnecessary expenditure, and the identification of cost drivers are all made possible by this integration.

To successfully develop and use ERP systems for product life cycle cost control, a number of criteria must be carefully considered. The ERP system's compatibility with the unique requirements and procedures of the industrial sector is an important consideration (Jaradat et al., 2024c). The need for customization and configuration is emphasized by Seethamraju (2015) in order to make sure that the ERP system successfully gathers and incorporates pertinent cost data unique to the product life cycle. The following hypothesis has been put forth in this context:

Numerous studies have looked at the relationship between efficient control of product life cycle costs and economic sustainability, offering insightful information about the possible advantages and drawbacks for businesses. For instance, Zhang and Wei's (2021) study of the manufacturing sector revealed that a firm's long-term viability and financial performance are both positively impacted by effective control of product life cycle costs.

In order to achieve economic sustainability, academics have stressed the importance of efficient cost control at all phases of a product's life cycle. Enterprises may make wise choices about pricing, resource allocation, and process improvements by precisely identifying and assigning costs at each stage (Kaplan and Anderson, 2007). Additionally, efficient management of product life cycle costing helps businesses find possibilities for cost savings, stop wasting money, and maximize resource use, improving their financial performance and competitiveness (You and Wu, 2019).

But it's crucial to consider the difficulties and complexity of managing product life cycle costs. Enterprises may have difficulties due to issues with precise cost allocation, data accessibility, and the integration of cost information across many processes and departments (Kanaparthi, 2023). Implementing strong cost management systems, using proper costing approaches, and setting up transparent cost monitoring and reporting procedures are all necessary for effective control (Bataineh and Alrjoub, 2023). The following hypothesis has been put out in this context:

The research on how the successful implementation of ERP systems effects business economic sustainability through the control of product life cycle costing in the industrial sector is strongly supported by the Resource-Based View (RBV) theory. According to RBV, a company's competitive advantage is derived from its distinctive resources and capabilities, which are valued, uncommon, challenging to duplicate, and non-substitutable. ERP systems may be viewed in this light as priceless assets that provide businesses with a competitive edge.

Utilizing ERP systems effectively allows businesses to manage all facets of their operations, including product life cycle costs, on a comprehensive and integrated platform. This makes it possible for businesses to effectively manage and monitor expenses throughout the whole life cycle of the product, from conception and design through distribution and disposal. Organizations can make wise decisions on pricing, cost optimization, and resource allocation due to the precise and current cost information provided by ERP systems. Additionally, ERP systems make it possible for data and information to be seamlessly integrated across many departments and functions within a business. Through enhanced cooperation and coordination, this integration promotes efficiency and cost management across the product life cycle. Organizations may enhance their economic sustainability by using the capabilities of ERP systems to optimize operations, get rid of duplication, and spot opportunities for cost savings.

In conclusion, RBV theory lends credence to the research by emphasizing the significance of ERP systems as important resources that help a business gain a competitive edge and maintain long-term economic viability. Organizations can efficiently control the cost of the product life cycle, allocate resources more efficiently, and save expenses through the integration, precision, and real-time capabilities of ERP systems. Organizations in the Jordanian industrial sector can improve their competitive position and attain economic sustainability by making use of these competencies. Five assumptions have been built into a synthesized theoretical model to direct future research efforts, as shown in Figure 1.

The primary instrument for gathering data for the study's quantitative methodology was survey questionnaires. Jordanian industrial firms that are listed on the Amman Stock Exchange made up the sample for this study. As they have sufficient understanding of their business's ERP system utilization, the participants were chosen based on their jobs as corporate managers, production managers, heads of accounting departments, and cost accounting personnel. 33 industrial enterprises were chosen for the research, and 155 questionnaires were sent out to qualified participants. 105 individuals completed the poll, yielding a 67% response rate for the study. Two partial replies were, however, disregarded, leaving 103 total responses that could be included in the study.

The structured questionnaire was carefully prepared with regard to the wording of items, variable categorization, coding, and general presentation in order to assure the validity and quality of the data. The study used a quantitative technique to look into the relationships between research components with the goal of testing hypotheses developed during its early stages. In order to test the hypotheses put forward, the basic data gathered from the survey were examined using appropriate statistical procedures. According to Sekaran and Bougie (2016), the study design and sample strategy were appropriate for achieving the goals of the research. In conclusion, the study's methodology and analysis strategy were exacting and excellent choices for addressing the research concerns.

Our research used a questionnaire made up of questions that were appropriately modified to fit the topic of our study from works by Hwang and Grant (2011), Khan and Naeem (2018), Shaw et al. (2005), Korpi and Ala-Risku (2008), and Jaradat et al. (2021). To ensure uniformity in responses, all items—aside from the demographic inquiries—were assessed using a five-point Likert scale.

To examine multicollinearity amongst constructs, we applied the VIF test recommended by Al Shbail et al. (2022). Table 1 shows that the VIF remained below 3.3 throughout the constructions, showing no significant multicollinearity issues. As a consequence, our conclusions are trustworthy and pertinent for both further research and practical applications.

In this study, we investigated the complicated link between ERP system use, product life cycle cost management, and industrial sector economic sustainability using the Partial Least Squares Structural Equation Modeling (PLS-SEM) approach and the Smart-PLS version 4.0 software. PLS-SEM, which has strong statistical power and can handle models with small sample sizes, was the optimal approach for this investigation. In addition, it can evaluate structural and measurement models, both of which are necessary for PLS-SEM analysis (Shbail et al., 2024). SEM is the most effective technique for estimating models containing latent variables, according to Sarstedt et al. (2020). The application generated accurate data that made it feasible to investigate the interactions between the study structures and provided understanding of the factors influencing economic sustainability in the industrial sector.

We thoroughly examine the measurement model data in the parts that follow in order to determine the accuracy and dependability of the measurements. Our examination includes looking at internal consistency reliability, item loadings, and convergent and discriminant validity tests (Hair et al., 2019).

The strength of the association between the items was evaluated using PLS-SEM. All item loadings were greater than the indicated threshold value of >0.70, according to the analysis's results, which are displayed in Table 1 and Figure 2 (Hair et al., 2019). Additionally, both Cronbach's alpha (α) and composite reliability (CR) tests were used to evaluate the internal consistency and dependability of the 26 items that were included in the research. Both measurements were higher above the suggested threshold value of 0.70 (Hair et al., 2019; AL-Hawamleh, 2024), demonstrating the items' high levels of internal consistency and dependability.

Convergent validity testing indicates that measures of related constructs have a positive correlation, which is a critical component of assessing a statistical model's correctness. A key indicator for establishing convergent validity is the average variance extracted (AVE) (Jaradat et al., 2023a). The analysis shown in Table 1 shows that all AVE values are higher than the suggested cutoff point of 0.50, proving the convergent validity of the constructs examined in this study.

Three tests—the Heterotrait-Monotrait (HTMT) criterion, Fornell and Larcker's criterion, and cross-loadings—were used to assess the study components' discriminant validity (Jaradat et al., 2023b, 2024d). According to our study, each item loaded more heavily than any other item on its specific construct, as seen in Table 2, where the loadings are shown in italicface type. The discriminant validity of the research constructs is supported by these findings.

Using Fornell and Larcker's (1981) criteria, discriminant validity was evaluated. According to this criteria, discriminant validity is deemed sufficient when the AVE squared values of one construct outweigh the shared variance between those values and those of other constructs. A matrix was created that included the correlation coefficient values between the value of each construct and the squared AVE values in order to fulfill the advice given by Henseler et al. (2015). The statistical model attained discriminant validity at the concept level, as shown by the correlation and squared AVE values in Table 3, with higher squared AVE values on the diagonal than off-diagonal values.

Henseler et al. (2015) presented the Heterotrait-Monotrait (HTMT) ratio as a unique method for evaluating discriminant validity. A ratio exceeding 0.85 in this method's measurement of the correlation between two different latent variables denotes inadequate discriminant validity (Henseler et al., 2015; Al Shbail et al., 2024). In our study, all HTMT ratios were below the recommended threshold, confirming the model's acceptable discriminant validity, as presented in Table 4.

The inner PLS model, which offered insights into the explained variance, variable relevance, and relationship significance between the postulated variables, was used to assess the structural model. As advised by Hair et al. (2019), fundamental metrics were used to evaluate the model's explanatory capacity, the strength of the correlations between variables, and the presence of multicollinearity. These metrics included the coefficient of determination (R²), effect size (f²), and predictive relevance (Q²).

The relationship between system-specification integration, staff training, and efficient ERP system use in the industrial sector is explained by the suggested model predictions in Table 5 to a substantial extent. In particular, the R² and adj. R²-values show that the model predictors can account for 25.6 and 24.6%, respectively, of the variation in this relationship. The magnitude of these values, however, can be affected by the complexity of the model, the predictor variables, and the sample size. These values imply that the model is competent at describing the phenomena.

Using R² and adj. R²-values values, the suggested model's ability to explain the link between the industrial sector's effective ERP system use and product life cycle costing was further assessed. The findings indicated that the model predictors may account for 15.5 and 15%, respectively, of the variation in this connection, indicating that a sufficient amount of the phenomenon is considered. Additionally, a substantial percentage of the variation in the link between product life cycle costs and worker and enterprise economic sustainability in the industrial sector is explained by the suggested model predictors. The findings indicated that the model predictors can account for 40.4 and 40%, respectively, of the variation in this connection, indicating that a sizeable percentage of the phenomenon is accounted for. These values are recognized by Hair et al. (2019) in this context as being suggestive of an acceptable model for describing the phenomenon.

The effect size values (f²), which showed medium-level contributions of each predictor in the model, ranging from 0.026 to 0.678, were investigated to determine the influence of the suggested predictors on the dependent variable's variance. A higher f²-value indicates that the predictor variable in the model is more important. The PLS model's predictive ability was also demonstrated in this study using predictive relevance (Q²), with a Q²-value greater than zero indicating the model's validity. To further assess the model's accuracy, a blindfolding technique was used; this produced substantial predictive relevance with Q²-values of 0.217, 0.248, and 0.114. Additionally, none of the predictor VIF values in the model had a value greater than 3.3, suggesting that there was no collinearity or substantial correlation between the predictor variables. Table 5 lists the R², adj. R², f², and Q²-values as well as the outcomes of the structural model evaluation.

The significance of the structural linkages between the study variables was tested using a bootstrapping approach with 5,000 iterations, as per Hair et al. (2019). The outcomes, as illustrated in Table 6, demonstrate that the system-specification integration has a positive impact on the effective use of ERP systems in the Jordanian industrial sector (β = 0.398; p < 0.05), which confirms Hypothesis 1. In testing Hypothesis 2, the results indicated that employee training has a positive impact on the effective use of ERP systems in the Jordanian industrial sector (β = 0.165; p < 0.05).

The outcomes also demonstrate that the effective use of ERP systems positively affects the control of product life cycle costing in the Jordanian industrial sector (β = 0.394; p < 0.05), thereby confirming Hypothesis 3. Finally, in testing Hypothesis 4, the outcomes indicate that the effective control of product life cycle costs positively affects the economic sustainability of enterprises in the Jordanian industrial sector (β = 0.636; p < 0.05). As such, all study hypotheses were supported, as depicted in Figure 3.

The study's assumptions point to favorable effects of numerous aspects on the efficient usage of ERP systems, which is consistent with past studies. The first hypothesis (β = 0.398; p < 0.000) indicates that system-specification integration has a favorable influence on the efficient usage of ERP systems in the Jordanian industrial sector. Our results are consistent with Weerasekara and Gooneratne's (2023) arguments, which emphasized that by capturing and processing information relevant to the industry, the integration of ERP systems with particular system requirements increases data correctness and dependability. Overall, this result is consistent with other research that highlights the need to match ERP systems to particular organizational requirements in order to improve performance.

Additionally, the study's results strongly concur with Hypothesis 2, which contends that staff training contributes to the efficient use of ERP systems in the Jordanian industrial sector (β = 0.165; p < 0.020). These results are consistent with the arguments made by Beric et al. (2020), and AlMuhayfith and Shaiti (2020), who emphasized the importance of employee training for the efficient use of ERP systems. Training decreases errors and rework caused by ignorance, avoids delays, and improves efficiency. The study's findings concur with Velcu's (2007) theory that investing in thorough training programs boosts system performance and usage.

The findings of this study have significant ramifications for Jordan's industrial sector. Organizations should give these issues priority in order to optimize the advantages of ERP adoption, according to the favorable effects of system-specification integration and personnel training on the efficient use of ERP systems. Companies in the Jordanian industrial sector can improve their operational efficiency and decision-making abilities by matching the ERP system with specific organizational demands and giving personnel thorough training.

Furthermore, the study's findings confirm Hypothesis 3, which asserts that the efficient use of ERP systems has a favorable impact on the management of product life cycle costing in the Jordanian industrial sector (β = 0.394; p < 0.000). This suggests that businesses may more effectively monitor and control the expenses related to the complete life cycle of their products if they implement ERP systems. Which is consistent with Pohludka et al. (2018)'s and Seethamraju (2015)'s views. The study's findings concur with those of Oghazi et al. (2018), who emphasized that ERP systems provide a comprehensive view of costs across the entire life cycle by combining data from various departments and processes, enabling real-time monitoring, analysis, and informed decision-making.

The findings of the study strongly support Hypothesis 4, which contends that efficient management of product life cycle costs has a favorable impact on the financial viability of businesses in the Jordanian industrial sector (β = 0.636; p < 0.000). These results are consistent with the claims made by Zhang and Wei (2021), who contend that a firm's capacity to effectively control product life cycle costs has a favorable impact on both its short- and long-term viability. The study's findings concur with You and Wu's (2019) and Kanaparthi's (2023) points of view, which emphasized that efficient control of product life cycle costing enables businesses to find cost-saving opportunities, stop wasting money, and maximize resource use, which boosts financial performance and competitiveness.

The benefit of efficient cost management in maintaining long-term company viability is demonstrated by the beneficial influence it has had on the economic sustainability of firms in the Jordanian industrial sector. Organizations may improve their competitiveness, profitability, and overall economic sustainability by controlling product costs efficiently throughout their life cycles. The findings of the study highlight the importance of ERP systems as a tool for accomplishing these goals. Businesses may access real-time data, simplify operations, increase cost accuracy, and make wise decisions with the help of ERP systems when used effectively. As a result, businesses in the Jordanian industrial sector are better able to maximize revenues, minimize expenses, and adjust to shifting market dynamics, all of which help to ensure their economic viability.

The findings of this study emphasize that ERP systems are not just tools for improving operational efficiency but also pivotal instruments for sustainable cost management across product life cycles. Enterprises can leverage ERP systems to integrate data from various departments, providing a holistic view of costs and enabling real-time monitoring and analysis. This functionality helps organizations track expenses at each stage of the product life cycle, from design and production to distribution and end-of-life management. By utilizing these insights, decision-makers can identify cost-saving opportunities, reduce waste, and optimize resource allocation, thereby enhancing financial performance and maintaining competitiveness in dynamic markets.

Moreover, ERP systems enable proactive decision-making by offering predictive analytics and scenario planning capabilities, allowing enterprises to anticipate and adapt to potential cost fluctuations. For managers, this translates into the ability to implement strategies that ensure not only short-term cost reductions but also long-term economic sustainability. The adoption of ERP systems, when aligned with organizational goals and coupled with thorough staff training, empowers businesses to achieve an optimal balance between cost control and operational efficiency. These capabilities are particularly relevant for decision-makers seeking innovative approaches to manage resources sustainably while maintaining profitability, making ERP systems an indispensable asset in today’s competitive business landscape.

The purpose of this study was to examine the impact of effective ERP system use on business economic sustainability through product life cycle cost management. It aimed to advance understanding of how ERP systems enhance business performance and long-term viability by exploring the connections between system integration, employee training, efficient ERP use, product life cycle costing control, and economic sustainability.

This investigation was driven by many factors. Firstly, the increased use of ERP systems in the industrial sector suggests a growing understanding of their potential advantages. However, it was important to investigate the precise processes through which ERP systems may have a beneficial effect on economic sustainability. The importance of product life cycle costing as a tactical tool for controlling costs and boosting competitiveness also emphasized the necessity to look at how it relates to the use of ERP systems. This study combined these two disciplines in an effort to clarify the interrelationships between ERP systems and product life cycle costing.

The findings of this investigation support a number of beneficial effects. First off, it was discovered that system-specification integration had a favorable impact on the efficient application of ERP systems in the industrial sector. This suggests that in order to maximize the advantages of ERP adoption, the system must be in line with organizational requirements and operations. The importance of providing employees with the skills and knowledge they need to operate the system efficiently is highlighted by the discovery that employee training has a favorable influence on the efficient usage of ERP systems. The study also showed that the control of product life cycle costs, which in turn favorably impacted the economic sustainability of businesses in the Jordanian industrial sector, was favorably impacted by the efficient use of ERP systems.

This study makes notable theoretical and practical contributions. Theoretically, it offers empirical proof of the connections between system-specification integration, staff training, efficient ERP system use, management of product life cycle costs, and sustainable economic growth. These results add to the body of research already available on ERP systems, cost management, and sustainability. The research, which emphasizes the significance of properly deploying and utilizing ERP systems to control product life cycle costs and improve economic sustainability, provides practical insights for managers and policymakers in the Jordanian industrial sector. The survey also emphasizes how crucial it is to spend money on staff training to make the best use of ERP systems and raise overall organizational effectiveness.

Despite the insightful conclusions drawn, this study has a number of limitations. First off, because the research was limited to the Jordanian industrial sector, its applicability to other industries or nations may be constrained. Second, the study used self-reported data, which is vulnerable to subjectivity and bias. By undertaking cross-industry and cross-country studies, using mixed-method techniques, and using objective performance indicators, future research might solve these constraints.

There are several promising avenues for further exploration. One important area involves examining the role of ERP systems in industries beyond the manufacturing and industrial sectors, such as healthcare, retail, or education, to understand how these systems adapt to the unique needs and challenges of different contexts. Additionally, research could focus on the integration of ERP systems with sustainability-focused technologies, such as Internet of Things (IoT) devices for energy monitoring or blockchain for supply chain transparency, to investigate their combined impact on organizational sustainability and efficiency.