1 Introduction

The novel coronavirus, known as Covid-19, is a respiratory disease that was first identified in December 2019 in Wuhan China. Since then, the outbreak of Covid-19 spread around the world causing more than half a billion cases and more than 6.5 million deaths [1]. Countries have made unprecedented measures to curb COVID-19 transmission including social distancing, lockdowns, and staying home strategies [2]. The first confirmed Covid-19 case in Jordan was recorded in March 2020 before the country started strict measures to restrain the impact of the pandemic by closing the country’s borders, imposing lockdowns, and suspending physical work in the different industries [3]. The main industries affected by the lockdown included educational institutions, tourism and travel agencies, construction firms, public transportation, and commercial and manufacturing companies.

The above-mentioned industries among others needed to adapt to the new strict measures taken in place due to Covid-19 to continue their operations. Computer-Assisted Audit Tools and Techniques (CAATTs) are software applications and tools that are used to enhance the efficiency and effectiveness of the audit process. Where these tools assist auditors in performing various audit tasks, including data analysis, sampling, and testing controls. For audit practitioners, CAATTs application is used as a platform to performing audit services in the new work environment faced by all industries due to the pandemic. Where, CAATTs application became an integral mechanism in providing audit services, especially in the period of social distancing and the partial lockdowns taking place. The Jordan Association of Certified Public Accountants (JACPA), an official agency that regulates the accounting profession in Jordan, aims to contribute to the planning and development of any training programs that raise the efficiency of the audit profession [4]. Hence, introducing CAATTs application is encouraged by the JACPA as a response to support the profession to continue operating efficiently in the Covid-19 period.

The pandemic-induced disruptions created a need to incorporate technological solutions in order to enhance audit quality, efficiency, and flexibility. Even though the pandemic period ended, the inherent impact of COVID-19 on business operations forced the reliance on CAATTs in the post-pandemic era. Hence, the objective of this study to understand the readiness of Jordanian-listed firms toward the application of CAATTs remains paramount. This paper investigates the internal and external factors that are assumed to determine the readiness of Jordanian-listed firms toward CAATTs application. To achieve the study objective, the study builds on previous theories that relates to readiness to change and technology adoption (i.e. the Resource-Based View (RBV) theory). Hence, this paper applies the Organizational Readiness for Change (ORC) and the Technology Readiness Index (TRI) as base models in determining the individual factors impacting the readiness of Jordanian-listed firms toward CAATTs application.

Designed by [5] the ORC framework tries to explain the organizational and individual factors impacting the adoption of new technology. The main factors included in the ORC model include the motivation for change, staff attributes, adequacy of resources, and organizational climate. The first factor, motivation for change, relates to the perceived pressure by the individual to change a certain behavior. The second factor, staff attributes, are the individual characteristics that impact their adaptability to new technologies and growth orientations. With regards to the organizational factors, adequacy of resources relates to staffing and office facilities, while organizational climate is concerned with the openness of communication toward change in the institution. As the ORC model focuses on the external constructs the TRI, on the contrary, suggests four internal dimensions influencing an organization’s readiness for change, namely, optimism, innovativeness, discomfort, and insecurity [6].

By examining the auditee perspective and focusing on the challenges that influence firms' capability to adopt CAATTs, the research fills a gap in the existing literature that predominantly focuses on the external auditors' perspectives. The contribution of this study lies in its dual focus on theoretical and practical implications for the adoption of CAATTs by Jordanian-listed firms in the post-COVID-19 period. Where it is crucial as it addresses the readiness of firms from an auditee perspective instead of the external auditors’ perspective. Moreover, applying the ORC and TRI models together provides a comprehensive framework for understanding both external and internal factors influencing readiness for CAATTs adoption. Overall, the findings of this study contribute to enhancing the understanding of firms’ readiness toward CAATTs application and provide practical guidance for improving their preparedness in the post-Covid-19 era.

The findings of this research reveal that motivation for change, staff attributes, institutional resources, organizational climate and discomfort have a significant direct relationship with readiness for change. Moreover, it is found that the perceived fear of Covid-19 has a moderating effect on the direct relationship between motivation for change and readiness for change. However, the proposed relationships between optimism, innovativeness and insecurity and readiness for change were not significant. This research stands out in the literature by its unique focus on the auditee perspective. In particular, examining the readiness of Jordanian-listed firms for the application of CAATTs in the post-COVID-19 era. Previous studies predominantly concentrate on external auditors' viewpoints, this research however, delves into the challenges and factors influencing firms from within. By doing so this study provides a comprehensive understanding of firms’ readiness for CAATTs adoption.

This paper proceeds as follows; the next section presents the literature review and discusses the hypotheses. The third section presents the methodology. The fourth section discusses the results, and the fifth section concludes.

2 Literature review and hypothesis development

2.1 Resource-based view theory

This paper builds on the RBV theory as the basis for the study model due to its robust theoretical foundation and relevance to our research objectives. This theory emphasizes the importance of internal organizational resources and capabilities in achieving sustained competitive advantage [7]. In the context of this study, the RBV theory examines the firm-specific resources and capabilities that contribute to readiness for technological change. Other theories may focus solely on external environmental factors or individual-level variables whereas the RBV theory allows us to delve into the unique internal resources and capabilities that shape firms’ ability to adopt CAATTs effectively [4]. Moreover, it aligns with the premise that firms with valuable, rare, and difficult-to-imitate resources are better positioned to leverage technological innovations for competitive advantage [7].

2.2 The Covid-19 pandemic

Covid-19 was first announced in December 2019 in Wuhan-China [8]. A few months later, the WHO declared the Covid-10 outbreak as a Public Health Emergency of International Concern (PHEIC). This was induced after the spread of Covid-19 to another 25 countries with more than 70 thousand confirmed cases and more the 2 thousand deaths in the first quarter of 2020 [1, 8]. In Jordan, the first confirmed case was reported in March 2020, where the government immediately closed the country’s land and air borders, banned gatherings of ten or more people, and closed public and private institutions and offices, except for the health sector and basic services.

The government’s strict measures to curb Covid-19 impacted the different industries in the country including the education sector, manufacturing firms, construction institutions, and services companies [9,10,11]. The main impact of the Covid-19 pandemic on the different enterprises in Jordan included cash flow deficiencies, lack of supply and demand, operating time disruptions, and temporary closure [10]. Firms, therefore, needed to adapt to the new work environment to avoid temporary or permanent closures. For the education sector, the government initiated a free eLearning platform called “Darsak” to replace the traditional face-to-face education system in schools [12]. Similar attempts were employed in the different affected sectors in the country where the transfer from conventional work environments to a more flexible environment. Taking advantage of available technology tools and techniques, is among the few options that firms have considering lockdowns and restrictions on gatherings policies enforced by the state.

2.3 CAATTs in Jordan

The JACPA was established in 1988 to administer professional certification examinations for accounting professionals in Jordan. It is responsible for overseeing members’ compliance with accountancy standards through a monitored system and provides accounting and auditing standards to the Higher Council for the Accountancy Profession (HCAP), as well as recommending ethical requirements to the HCAP. The JACPA aims to contribute to the development of the accounting profession and became a member of the International Federation of Accountants (IFAC) in 1992, which seeks to develop high-quality international auditing standards and encourage the exchange of technical information and innovation between member bodies [13].

Therefore, the JACPA seeks to contribute to enhancing and developing the accounting profession and to adopt any practices that improve audit practitioners’ ability to provide high-quality audit services. One recent innovative development in the audit profession is the introduction of CAATTs which can improve audit quality, lower costs, and increase flexibility and market share [14]. Furthermore, to assist auditors in performing audit services more efficiently, the Information Systems Audit and Control Association (ISACA) recommends the use of CAATTs. In Jordan, the adoption of CAATTs is influenced by technological, organizational, and environmental (TOE) factors, such as compatibility, organizational readiness, top management support, auditors’ competency, audit task complexity, entity size, and government regulation [15, 16]. Hence, it is important to investigate both the internal and external constructs affecting the readiness of Jordanian-listed firms toward the application of CAATTs.

In the Jordanian context, the dynamic landscape of the country’s accounting profession shaped the emergence of both challenges and opportunities associated with the adoption of CAATTs. These challenges were more pronounced during the backdrop of the COVID-19 pandemic. The problem affects Jordanian-listed firms striving to adapt to new operational norms during the strict measures imposed by the pandemic. Attempts to address this challenge have been spearheaded by the JACPA, aligning with its commitment to advancing the accounting profession. JACPA actively encourages the adoption of CAATTs, recognizing their potential to enhance audit quality, reduce costs, and increase flexibility. The association’s advocacy reflects a strategic response to the unprecedented conditions induced by the pandemic, aiming to support audit practitioners in navigating the evolving landscape.

2.4 Organizational readiness for change

There is a vast amount of literature discussing organizational change, where most previous studies focus on organizational change approaches including direct change, planned change, and guided change [17,18,19,20]. The direct change approach is when the change is taking effect through the top of the organizational hierarchy as role models for the remainder of the organization members. Whilst planned change approach takes place at any level of the organization as long as the change is considered acceptable by the top management. For a guided change approach, change takes place eventually as all organization members change in a committed manner to achieve the organization’s goals and therefore the change occurs accordingly. It is found that resistance to change is more likely to be present in the direct change approach compared with both planned and guided change.

Other literature focuses on the factors impacting the readiness to change instead of the change itself [21,22,23]. This study develops a new model based on the ORC and the TRI models to examine the individual factors impacting the readiness of Jordanian-listed firms toward CAATTs application [24]. Define organizational readiness to change as the organization’s ability to adapt to change. However, technology readiness is defined as the potential inclusion of new techniques by an individual using the available technologies to successfully accomplish their ordinary tasks [6, 25, 26].

The ORC framework illustrates the organizational and individual factors that influence the organization’s ability to adopt new technology [5]. It highlights 18 factors impacting organizational change categorized into four main domains. The first domain deals with the motivation for change, and it includes three factors, namely program need for improvement, training needs, and pressure for change. These factors reflect the current perceptions of the individuals in the organization toward the need for change, where if not triggered sufficiently it will be difficult for the change to occur. The selection of the ORC model for this study is justified by its established comprehensive framework for understanding the organizational and individual factors that influence an organization's readiness to adopt new technology [5]. The ORC model allows us to systematically examine the external constructs shaping behavioral responses to technological adoption. Therefore, the utilization of the ORC model aligns with our study’s objective of examining the factors influencing firms’ readiness toward CAATTs application, providing a robust theoretical framework to guide our analysis.

The application of CAATTs is usually present in an environment where it is perceived that such services will positively impact the audit assignment [27, 28]. When the organizational culture views change as a continuous activity that extends the institutional capabilities, this in turn improves the organization’s readiness to change [24, 29]. From the employee perspective, such change can occur when it has a positive impact on job security and job recognition [30, 31]. Moreover, the Covid-19 environment forced a workplace where the ability to use technology in completing tasks is crucial to maintaining any business [32], and hence the fear of Covid-19 impacts employees’ job security and therefore their motivation for change. Based on the previous discussion we develop the following hypotheses.

Hypothesis 1

Motivation for change has a significant influence on the readiness of Jordanian-listed firms toward CAATTs application.

Hypothesis 2

Perceived fear of Covid-19 increases motivation for change influence on the readiness of Jordanian-listed firms toward CAATTs application.

The second domain in the ORC investigates staff attributes that impact organizational change, where it consists of four factors namely growth, efficacy, influence, and adaptability [20]. Where it is very important for employees to have the skills needed to complete their assigned tasks [24]. Demonstrate that the skills the employees obtain must match their job description, and hence employees should have the ability to adjust their skills based on the changing circumstances to keep their jobs. The application of CAATTs not only requires auditors to have certain skills but also the client should have a compatible system that accountants at that firm can also use. Hence, we presume that staff attributes influence an organization’s readiness to change and based on that we develop the following hypothesis.

Hypothesis 3

Staff attributes have a significant influence on the readiness of Jordanian-listed firms toward CAATTs application.

The third domain is concerned with institutional resources and includes five elements, namely offices, staffing, training resources, computer access, and e-communications. The change capacity of an organization refers to its ability to attempt change, which depends on three factors that [19] summarize as willingness, infrastructure, and resources. Hence, the readiness to change for an organization is subject to its capacity regarding the new environment. The application of CAATTs requires the company to adopt it to certain resources such as communication technologies, information systems, and procedural manuals and training for employees.

Hence, alongside the motivational and staff attributes the firm should also have the required institutional resources to change to new technology [33]. We conjecture that the readiness of firms to apply CAATTs is impacted by the available institutional resources and hence formulate the following hypothesis.

Hypothesis 4

Institutional resources have a significant influence on the readiness of Jordanian-listed firms toward CAATTs application.

The fourth and final domain of the ORC framework is organizational climate, and it explores six aspects, namely clarity of mission and goals, staff cohesiveness, staff autonomy, openness to communication, and openness to change. Different from both staff attributes and institutional resources domains, this category deals with the general atmosphere of the intuition toward change [24]. Propose an institution that adopts the notion of a Learning Organization (LO) gains a competitive advantage in the business environment, moreover, it has more potential and better opportunities to manage change. Where the LO is defined by many scholars as an institution that constantly improves its processes by building on either individuals or groups from the inside of the organization to enhance the firm’s competitive advantage through change [34,35,36,37]. An organizational climate that meets the LO criteria can in turn impact the firm’s capabilities toward change [37], which is in this context firm’s readiness to adopt CAATTs. Based on the previous discussion we formulate the following hypothesis.

Hypothesis 5

Organizational climate has a significant influence on the readiness of Jordanian-listed firms toward CAATTs application.

Figure 1 illustrates the relationships proposed in the ORC framework that was developed by [5] and used to formulate the research hypotheses.

Fig. 1
figure 1

The relationships proposed in the ORC framework

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2.5 Technology readiness index

The TRI proposes four dimensions that influence an organization’s readiness toward change, namely optimism, innovativeness, discomfort and insecurity [6, 38]. Where optimism and innovativeness are drivers for readiness to change, in particular, optimism reflects a positive perception that encourages the adoption of new technology in order to achieve better control, more flexibility, and enhanced efficiency of work. Innovativeness represents the individuals’ tendency toward becoming pioneers in their area by adopting new technology. In our context, following [38] we conjecture that the use of CAATTs represents the new technology for accountants, and hence formulate the following hypotheses.

Hypothesis 6

Optimism has a significant influence on the readiness of Jordanian-listed firms toward CAATTs application.

Hypothesis 7

Innovativeness has a significant influence on the readiness of Jordanian-listed firms toward CAATTs application.

On the contrary, the TRI index's two other dimensions represent the inhibitors to change, namely discomfort and insecurity. Where discomfort is characterized when individuals perceive a lack of control over the new technology or they do not feel capable of using it. While and insecurity about new technology is present when individuals lack trust in the ability of the new technology to accomplish their assigned tasks. Therefore, we construct the following research hypotheses.

Hypothesis 8

Discomfort has a significant influence on the readiness of Jordanian-listed firms toward CAATTs application.

Hypothesis 9

Insecurity has a significant influence on the readiness of Jordanian-listed firms toward CAATTs application.

The TRI model is presented in Fig. 2 below to illustrate the relationships used to formulate the before-mentioned hypotheses.

Fig. 2
figure 2

The relationships proposed in the TRI model

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2.6 Study model

This research significantly contributes to the organizational change literature by focusing on the auditee perspective within the unique context of Jordanian-listed firms during the post-COVID-19 period. Grounded in the integration of the ORC model and the TRI, the study offers a nuanced understanding of individual factors influencing the firms' readiness for the application of CAATTs.

The geographical and historical dimensions are considered, aligning with the specific socio-economic conditions of Jordan and incorporating insights from relevant studies within the Jordanian context. This approach provides valuable insights into both the challenges and opportunities faced by auditees. In particular, it emphasizes the social, scientific, and historical relevance of the study in the evolving landscape of technology adoption in auditing practices.

This study targets the institutional setting of Jordan for several reasons. Firstly, Jordan represents an emerging market, making it an interesting setting to investigate the adoption of CAATTs within a growing economy. Secondly, the country’s unique socio-economic and regulatory environment and its changes due to the pandemic present specific challenges and opportunities for the implementation of CAATTs. Thirdly, the JACPA plays a significant role in shaping the accounting profession, providing a conducive environment for studying CAATTs adoption initiatives. The research model used in this study is presented in Fig. 3.

Fig. 3
figure 3

Study model

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The factors incorporated into the research model are based on a comprehensive understanding of organizational change and technological adoption literature. Drawing on seminal works by scholars such as [29, 37, 38] the study model integrates the ORC model and the TRI considering both external and internal constructs impacting the readiness of Jordanian-listed firms toward CAATTs application.

The ORC framework focuses on the external constructs shaping behavioral responses to technological adoption. The TRI model, however, offers insights into individual factors influencing readiness. This comprehensive integration between these models ensures capturing the multifaceted nature of readiness for technological change, enhancing the validity and applicability of our findings.

3 Research methodology

3.1 Sample and data

Empirical data were collected through a cross-sectional questionnaire distributed among the 167 Jordanian-listed firms. Where 250 employees working in the accounting departments who are directly dealing with external audit practitioners were recruited. Among these we received 138 responses which covers more than 80% of all listed firms. All methods in this study were conducted in accordance with relevant guidelines and regulations.

3.2 Questionnaire design

A questionnaire was designed to explore the research questions empirically. The first section collects demographic information about the participants including gender, age, level of education and level of CAATTs related experience. The second section consists of 36 items that are used to measure the eight constructs related to Jordanian-listed firms’ readiness toward CAATTs application as well as the moderating role of perceived fear of Covid-19 following previous studies [5, 6, 39,40,41,42]. The variables used include exogenous variables such as motivation for change, staff attributes, institutional resources, and organizational climate, and also include endogenous variables such as optimism, innovativeness, discomfort and, insecurity.

The model also uses perceived fear of Covid-19 as a moderator variable for the relationship between motivation for change and firms’ readiness to change. We identify the quantitative score for each construct using a 5-point Likert scale, where each variable is measured by multiple items each one is given five answers with scores ranging from “strongly disagree” with the value of 1 to “strongly agree” with the score value of 5. All the constructs are developed after a thorough review of previous studies based on the ORC framework and the TRI index [5, 6]. The detailed questionnaire is provided in Appendix A1 illustrating the structure and content of the questionnaire. To improve the questionnaire’s validity, a pilot study was conducted before the actual test, it was also been checked by scholars from related research fields.

4 Results

4.1 Respondents’ profile and characteristics

Table 1 illustrates the full details related to participants’ characteristics. The results showed that 76% of the participants who responded to the survey were males (N = 105), while the rest were females (N = 33). Furthermore, the age categories of respondents were as follows; 30% are 25 years or less, 37% ranged between 26 and 35 years, 22% ranged between 36 and 45 years and 11% for those who are above 45 years old. In addition, 68% of the participants have Bachelor degrees, 20% have a Master’s and 9% hold a PhD. Besides, when respondents were asked about their experience in using CAATTs, the results showed that 51% of the participants answered “Heard of it but never used it”. This is followed by those who have “Attended training courses on how to use it” (21%), those who “Never heard of it” (21%) and 7% of the participants are using CAATTs in their work. With regard to the Professional Certificates, the results showed that 12% of the participants are CPA, 8% JCPA and 5% CMA.

Table 1 Sociodemographic characteristics of participants
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4.2 Common method bias

In order to make sure that the collected data does not contain Common Method Bias (CMB), the Harman’s single-factor with all constructs was carried out [43]. The ten constructs were then loaded into a single factor. The analysis results indicate that the largest variance explained by the single factor accounted for 38.21%, which was below the suggested value of 50% [43, 44]. Therefore, the collected data shows no concerns in terms of CMB.

The estimation of model fit in the current study employed two well documented indices: The Standardized Root Mean Square Residual (SRMR) and the Normed Fit Index (NFI). According to [45], SRMR values below 0.08 indicate a good fit, and in the present analysis, the obtained SRMR value was 0.047, well below the recommended threshold. In addition, [46] recommend that NFI values exceeding 0.90 commonly demonstrate an acceptable fit. Table 2 shows that the NFI was determined to be 0.951, exceeding the suggested cutoff. Accordingly, the results offer a robust indication that the model effectively fits the data, as supported by the SRMR value falling below 0.08 and the NFI exceeding 0.90.

Table 2 Estimation of model fit
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4.3 Measurement model assessment

This study uses Partial Least Squares Structural Equation Modeling (PLS-SEM) as the statistical analysis method for several reasons. PLS-SEM is particularly suitable for exploratory research, where the focus is on exploring relationships among variables and theory development rather than strict hypothesis testing. Secondly, PLS-SEM offers flexibility and robustness in handling small sample sizes with many latent variables and indicators. Moreover, it allows for the estimation of both measurement and structural models simultaneously, which makes it well-suited for analyzing complex relationships and latent constructs. Overall, the methodological flexibility, robustness, and suitability of PLS-SEM for exploratory research make it the ideal choice for our study compared with other methods such as Covariance-Based Structural Equation Modeling (CB-SEM) and other methods.

The first step in PLS analysis is the assessment of the measurement model. In this regard, convergent and discriminant validity need to be established to ensure the constructs’ validity. Convergent validity is established when items in a particular measure converge to represent the underlying construct. Cronbach's alpha was used to establish convergent validity and AVE to establish composite reliability. Statistically, convergent validity and composite reliability are established when Cronbach's alpha value is > 0.70 and the AVE value is > 0.50 respectively [48].

The current study found Cronbach's alpha values ranging from 0.780 to 0.894 indicating good internal consistency. The composite reliability values from 0.870 to 0.927, while AVE values ranged from 0.627 to 0.762 further confirming the reliability of the constructs. Except for two items (SA4 and IR3), the constructs' factor loadings to the indicators ranged from 0.760 to 0.954, which are above the cut-off value of 0.70, establishing individual reliability; the two items with unacceptable loading were dropped from the model. Figure 4 illustrates the PLS algorithm results while Table 3 presents the values that confirm the convergent validity of the constructs.

Fig. 4
figure 4

PLS algorithm results

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Table 3 Loadings, composite reliability and AVE
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Discriminant validity, described as the level to which a particular latent construct differs from its counterpart constructs [47], can be confirmed through the use of AVE, in which the correlations of the latent constructs and the squared AVE are compared [48]. Criteria validity was applied in the current study with the results presented in Tables 4 and 5; it is evident that the latent AVE variables exceeded the required value of 0.50, and the AVE square roots were higher than the latent variables' correlation values, establishing discriminant validity. Discriminant validity was also confirmed by comparing the indicator loadings with cross-loadings [47].

Table 4 Discriminant validity (HTMT ratio)
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Table 5 Fornell-Larcker criterion
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4.4 Assessment of structural model

After the measurement model’s validity was established, the structural model was assessed using the standard bootstrapping procedure, with 5000 bootstrap samples and 138 cases to determine the consistency of causal relationships in the data and identify the significance of the path coefficients as illustrated in Fig. 5. The guidelines established by [49] were followed, and the structural model’s full estimates are presented in Table 6.

Fig. 5
figure 5

Structural model assessment using the standard bootstrapping procedure

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Table 6 Structural model (direct effects)
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Based on the values in Table 6, five factors were found to have significant direct relationships with Readiness for change: Motivation for change (β = 0.135, t = 2.217, p = 0.027), Staff attributes (β = 0.151, t = 2.654, p = 0.008), Institutional resources (β = 0.127, t = 2.170, p = 0.031), Organizational climate (β = 0.150, t = 2.924, p = 0.004) and Discomfort (β = 0.320, t = 4.987, p = 0.000) supporting hypotheses H1, H3, H4, H5 and H8. However, the proposed relationships between Optimism and Readiness for change (β = 0.007, t = 0.159, p = 0. 874), Innovativeness and Readiness for change (β = 0.108, t = 1.905, p = 0. 057) and Insecurity and Readiness for change (β =—0.072, t = 1.548, p = 0. 122) were not significant as the p values for these relationships were less than 5%, thus H6, H7 and H9 were not supported.

4.5 Testing the moderation effect of perceived fear of Covid-19

In addition to the direct effects, this study tested for a moderating effect of Perceived fear of Covid-19 on the relationships between Motivation for change and Readiness for change using the product indicator method by PLS-SEM. This method was adopted as it provided an accurate outcome obtained using the interaction term approach and the group comparison method evidenced by [47]. It required the development of product terms between the latent independent construct indicators (Motivation for change) and the latent moderating variable indicators (Perceived fear of Covid-19). The product term (interaction) is indicated in this study as ‘Motivation for change x Perceived fear of Covid-19’ as shown in Fig. 6.

Fig. 6
figure 6

The moderation effect of Perceived fear of Covid-19

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The results shown in Table 7 reveal that Perceived fear of Covid-19 was found to have a moderating effect on the direct relationship between Motivation for change and Readiness for change (β = 0.195, t = 3.177, p = 0.002), supporting hypothesis H2 as illustrated in Fig. 7.

Table 7 Structural model (moderating effect)
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Fig. 7
figure 7

Structural model (moderating effect)

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4.6 Explanatory power (R2), effect size (ƒ2), and the predictive relevance of the model (Q2)

The R2 values provide an indicator for the explanatory power of the model, according to [49], R2 values of ≥ 0.75, ≥ 0.50, and ≥ 0.25 are reflected a substantial, moderate, and weak explanatory power, correspondingly. The results indicated a substantial explanatory power (R2) amounting to 75% and introducing the moderate factor to the model had increased R2 value to 78% indicating a sufficient explanation of the model for the factors’ influence over Readiness for change.

The role of each factor in the current study’s model is estimated using effect size analysis. According to [49], ƒ2 values of 0.35, 0.15, and 0.02 are considered significant, moderate, and minor effects size, respectively, whereas ƒ2 values of less than 0.02 imply no effect on a dependent variable. The results show that Discomfort (ƒ2 = 0.223) has a medium effect on Readiness for change. The remaining factors in the model have a minor effect as ƒ2 values were less than 0.15. Moreover, Q2 values are indicators to evaluate the predictive accuracy of the structural model. The study utilized a blindfolding technique to evaluate predictive accuracy, the result reveals that the Q2 value = 0.475, indicating that the prediction accuracy of the model met the rule of thumb of Q2 > 0.0 [49].

4.7 Importance-performance map analysis (IPMA)

As an advanced approach in PLS-SEM, this study employs the importance-performance map analysis (IPMA) by using Readiness for change as the target variable. Doing so provides more insights into the understanding of PLS-SEM findings [50]. In particular, IPMA takes into account the average value of latent variables and their indicators (i.e., “performance measure”) [50] instead of measuring the path coefficients only (i.e., “importance measure”).

The importance and performance of all the independent variables were measured. Concerning the importance measure, it is evident that Discomfort is regarded to be the most important factor for predicting the Readiness for change, followed by, Staff attributes, Organizational climate, Motivation for change, Institutional resources, Perceived fear of Covid-19, Innovativeness, Optimism and Insecurity, respectively. In terms of the performance measure, it can be seen that Optimism has the highest value, followed by Staff attributes, Discomfort, Insecurity, Institutional resources, Innovativeness, Organizational climate, Motivation for change and Perceived fear of Covid-19, respectively.

The IPMA results provide evident support for the structural model results. In that, Optimism was found to be the most predictor variable to the Readiness for change in terms of performance measures and Discomfort was found to be the most predictor variable of the Readiness o change in terms of importance measures, which in turn, supports the results provided in Table 8, in which Discomfort was shown to have the highest standard beta value.

Table 8 IPMA for Readiness for change
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In summary, the measurement model constructs were confirmed through PLS-SEM and all met the validity and reliability constructs measured by Cronbach alpha and AVE. The PLS analysis was then used to examine the independent-dependent variables’ relationships; five of the eight direct hypothesized relationships were supported, with high explanatory power (R2) amounting to 75%, the moderating effect was confirmed as well and increased R2 value to 78% indicating the sufficient explanation of the model for the factors' influence over Readiness for change.

5 Discussion

This paper examines the internal and external constructs that influence the reediness of Jordanian-listed firms toward the application of CAATTs. In particular, it employs both the ORC model and the TRI model. In the ORC model, the focus is put on the external constructs that shape the behavioural toward new technology applications, in this paper being the adoption of CAATTs. The first domain investigated through the ORC model is the motivation for change, and it reflects the current perceptions of the individuals in the organization toward the need for change, where if not triggered sufficiently it will be difficult for the change to occur. The second domain discussed in the ORC model and investigated in this paper is the staff attributes that impact organizational change.

This domain discusses the skills that individuals must master based on the changing circumstances to keep their jobs. The third domain is concerned with institutional resources that formulate the change capacity of an organization based on its ability to attempt change. Lastly, the organizational climate domain which deals with the general atmosphere of the intuition toward change.

The ORC four domains mainly focus on the external constructs that impact the ability to change, and hence, the readiness toward CAATTs application. In this paper, we also employ internal constructs through the adoption of the TRI model. The TRI proposes four dimensions that influence an organization’s readiness toward change, namely optimism, innovativeness, discomfort and insecurity [6]. Where optimism reflects the positive perception that encourages the adoption of new technology in order to achieve better control, more flexibility, and enhanced efficiency of work. Innovativeness represents the individuals’ tendency toward becoming pioneers in their area by adopting new technology. The other two constructs, discomfort and insecurity represent individuals’ perceived lack of control over the new technology or lack of trust in the ability of the new technology to accomplish tasks.

5.1 Theoretical and practical implications

The findings of the paper reveal a direct and significant relationship between motivation for change, staff attributes, institutional resources, organizational climate and discomfort with readiness for change. Indicating that these external and internal constructs are important indicators of a firm’s readiness toward CAATTs application. It is also proven in the study that the fear of Covid-19 further strengthens the influence of motivation for change on readiness for change. Nonetheless, the results do not conclude a significant relationship between optimism, innovativeness and insecurity and readiness for change, concluding that discomfort is the only internal construct that impacts the firm’s readiness to adopt CAATTs.

The findings of this study contribute theoretically and practically to the literature in several key ways. The integration of the ORC model and the TRI presents a novel approach to understanding the factors impacting the readiness of Jordanian-listed firms toward CAATTs application. In particular, examining both external constructs and internal constructs in the study model provides a nuanced understanding of the determinants of readiness for change. Moreover, the inclusion of the moderating role of perceived fear of Covid-19 enhances the model’s applicability in the context of the post-pandemic era.

Therefore, the findings offer practical insights for decision-makers and policymakers in assessing and enhancing readiness within their organizations toward technology adoption. In particular, recognizing the impact of pandemic-induced changes, organizations can better prepare for future disruptions by integrating resilient technological solutions.

5.2 Limitations and future work

The finding of the study expands the application of the ORC and TRI in the field of readiness for change. Several limitations that are still warrant acknowledgment in this study. Firstly, a quantitative approach was used in the study design, such design may limit the depth of understanding of the complexities surrounding firms' readiness for CAATTs adoption. Therefore, further qualitative research is needed to delve deeper into the other factors influencing firms’ readiness toward CAATTs application.

Additionally, the study focused on the institutional setting of Jordan. Hence, the generalizability of the findings to other contexts or organizational settings should undergo further investigation. It is suggested that future research should explore the applicability of the proposed model in different cultural, regulatory, and economic environments to enhance its external validity and allow for generalizability. Lastly, the study’s cross-sectional nature does not allow for causal inferences, despite the efforts made to control for potential confounding variables. Therefore, future research could employ longitudinal or experimental designs that can in return establish causal relationships between the identified constructs and firms' readiness for CAATTs adoption. Overall, addressing these limitations would strengthen the validity and generalizability of future research endeavors in this domain in the same institutional setting or other work environments.

The study concentrated solely on the institutional setting of Jordan. Hence, the generalizability of the findings to other organizational settings should undergo further investigation. It is suggested that future research should explore the applicability of the integration of the ORC model and the TRI in different cultural, regulatory, and economic environments to enhance its external validity and allow for generalizability.

6 Conclusion

Countries have made unprecedented measures to curb COVID-19 transmission such as social distancing, lockdowns, and staying-home strategies. Therefore, businesses needed to adapt to the new strict measures to continue their operations. The adoption of CAATTs has been a major trend in the accounting profession in recent years as a platform for performing audit services in the new work environment. Introducing CAATTs was also encouraged by the JACPA as a response to support the profession to continue operating efficiently in the Covid-19 period. However, the adoption of CAATTs can also be a challenging process, and there are several factors that can impact the readiness of firms to adopt CAATTs.

Hence, this study integrated the ORC model and the TRI presenting a novel approach to understanding the factors impacting the readiness of Jordanian-listed firms toward CAATTs application. In particular, examining both external and internal constructs in the study model provides a nuanced understanding of the determinants of readiness for change.

The study found that motivation for change, staff attributes, institutional resources, organizational climate, and discomfort all have a significant direct relationship with readiness for change. The study also found that perceived fear of Covid-19 has a moderating effect on the direct relationship between motivation for change and readiness for change. However, the proposed relationships between optimism, innovativeness, and insecurity with readiness for change were not significant.

The findings suggest that policymakers should focus on creating an environment that fosters motivation for change. It is also proven in the study that the fear of Covid-19 further strengthens the influence of motivation for change on readiness for change. The findings also suggest that practitioners should focus on developing staff attributes that are conducive to change. Additionally, the findings suggest that the availability of institutional resources supports the adoption of CAATTs, such as funding and technical support.

In conclusion this study underscores the importance of preparing organizations for technological advancements, particularly in auditing. Where practitioners are recommended to create an organizational climate that is supportive of change, such as by fostering a culture of continuous improvement. Additionally, practitioners are advised to address discomfort with change to enhance the readiness for CAATTs adoption, such as by providing training and support to help employees overcome their fears.