Journal of Project Management (Canada) | 2026
Authors: Alshehadeh A.R.; Assaf N.; Al-Shoura L.B.S.; Altaamneh Y.; Jarah B.A.F.; Alazzam F.A.F.
DOI: 10.5267/j.jpm.2026.3.006
Journal: Journal of Project Management (Canada)
Year: 2026
Publisher: Growing Science
Document Type: Article
Open Access: All Open Access; Gold Open Access
Cited by: 0
This study investigates the legal role of supply chain governance (SCG) in mitigating contractual risks within Jordanian Islamic banks. Specifically, it examines the impact of five key governance components: supply chain governance, legal compliance, contract governance practices, transparency, and supplier governance mechanisms. A quantitative, cross-sectional research design was employed, with data collected from 220 employees involved in supply chain management, compliance, and contract oversight. The study applied Structural Equation Modeling (SEM) to test five hypotheses, evaluating the relationships between governance practices and contractual risks. The results reveal that all five governance components have a statistically significant negative effect on contractual risks. Supply chain governance and contract governance practices exhibited the strongest impact, followed by legal compliance, transparency, and supplier governance mechanisms. These findings indicate that an integrated governance framework enhances operational efficiency, ensures regulatory and Shariah compliance, and reduces the likelihood of contractual disputes in Islamic banking. The study contributes to the literature by providing empirical evidence on the multidimensional role of governance in risk mitigation and offers practical guidance for managers seeking to strengthen governance mechanisms across the supply chain. © 2026 by the authors.
Contract Governance Practices; Contractual Risks; Islamic Banking in Jordan; Legal Compliance; Supplier Governance Mechanisms; Supply Chain Governance; Transparency