Digital Business Transformation and Its Impact on Organizational Performance in the Banking Industry: The Mediating Role of Digital Capability and Employee Adaptability

Authors

  • Ayi Wahid Universitas Siber Indonesia, Jakarta, Indonesia
  • Hery Wihasnanto Universitas Krisnadwipayana, Bekasi, Indonesia
  • Rosna Yuherlina Siahaan Sekolah Tinggi Ilmu Pelayaran (STIP) Jakarta, Jakarta, Indonesia
  • Rini Martiwi Universitas Siber Indonesia, Jakarta, Indonesia
  • Ari Wijaya Universitas Persada Indonesia Y.A.I, Jakarta, Indonesia

DOI:

https://doi.org/10.38035/gijea.v4i3.973

Keywords:

Digital Business Transformation, Digital Capability, Employee Adaptability, Organizational Performance, Banking Industry

Abstract

Advances in digital technology are driving the banking industry to undertake business transformation to improve organizational performance. This study aims to analyze the influence of digital business transformation on organizational performance, with digital capabilities and employee adaptability as mediating variables. The study used a quantitative approach through a survey of banking employees involved in digital transformation. Data were analyzed using Structural Equation Modeling (SEM). The results show that digital business transformation has a positive and significant impact on organizational performance, as well as improving employee digital capabilities and adaptability. Both variables also positively influence organizational performance and act as partial mediators in the relationship between digital business transformation and organizational performance. These findings indicate that the success of digital transformation depends not only on technology investment but also on strengthening employee digital capabilities and adaptability. This study provides an empirical contribution to the development of digital transformation studies in the banking sector and provides input for bank management in improving organizational performance sustainably.

References

Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120. https://doi.org/10.1177/014920639101700108

Bharadwaj, A. (2000). A resource-based perspective on information technology capability and firm performance. MIS Quarterly, 24(1), 169–196. https://doi.org/10.2307/3250983

Bharadwaj, A., El Sawy, O. A., Pavlou, P. A., & Venkatraman, N. (2013). Digital business strategy: Toward a next generation of insights. MIS Quarterly, 37(2), 471–482. https://doi.org/10.25300/MISQ/2013/37.2.3

De Meuse, K. P., Dai, G., & Hallenbeck, G. S. (2020). Learning agility: A construct whose time has come. Consulting Psychology Journal: Practice and Research, 72(3), 212–229. https://doi.org/10.1037/cpb0000173

Fitzgerald, M., & Stolterman, E. (2022). Perspectives on digital transformation in business and society. Journal of Strategic Information Systems, 31(2), 101694. https://doi.org/10.1016/j.jsis.2022.101694

Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2019). A primer on partial least squares structural equation modeling (PLS-SEM) (2nd ed.). Sage Publications.

Lyytinen, K., Yoo, Y., & Boland, R. J. (2021). Digital product innovation within four classes of innovation networks. Information Systems Journal, 31(1), 5–37. https://doi.org/10.1111/isj.12310

Pulakos, E. D., Arad, S., Donovan, M. A., & Plamondon, K. E. (2000). Adaptability in the workplace: Development of a taxonomy of adaptive performance. Journal of Applied Psychology, 85(4), 612–624. https://doi.org/10.1037/0021-9010.85.4.612

Pulakos, E. D., Mueller-Hanson, R. A., & O’Leary, R. S. (2019). Adaptability in the workplace: Development of a taxonomy of adaptive performance. Journal of Applied Psychology, 85(4), 612–624. https://doi.org/10.1037/0021-9010.85.4.612

Saldanha, T. J. V., Mithas, S., & Krishnan, M. S. (2021). Leveraging digital transformation: How digital capability influences firm performance. California Management Review, 63(3), 34–56. https://doi.org/10.1177/0008125621992583

Shin, J., Taylor, M. S., & Seo, M.-G. (2020). Resources for change: The relationships of organizational inducements and psychological resilience to employees’ attitudes and behaviors toward organizational change. Academy of Management Journal, 55(3), 727–748. https://doi.org/10.5465/amj.2010.0573

Susskind, R., & Susskind, D. (2022). The future of the professions: How technology will transform the work of human experts (Updated ed.). Oxford University Press.

Tarafdar, M., Cooper, C. L., & Stich, J.-F. (2021). The technostress trifecta—Techno eustress, techno distress, and design: Theoretical directions and an agenda for research. Information Systems Journal, 31(1), 6–42. https://doi.org/10.1111/isj.12307

Teece, D. J. (2018). Business models and dynamic capabilities. Long Range Planning, 51(1), 40–49. https://doi.org/10.1016/j.lrp.2017.06.007

Verhoef, P. C., Broekhuizen, T., Bart, Y., Bhattacharya, A., Dong, J. Q., Fabian, N., & Haenlein, M. (2021). Digital transformation: A multidisciplinary reflection and research agenda. Journal of Business Research, 122, 889–901. https://doi.org/10.1016/j.jbusres.2019.09.022

Vial, G. (2021). Understanding digital transformation: A review and a research agenda. Journal of Business Research, 122, 889–901. https://doi.org/10.1016/j.jbusres.2019.09.022

Warner, K. S. R., & Wäger, M. (2019). Building dynamic capabilities for digital transformation: An ongoing process of strategic renewal. Long Range Planning, 52(3), 326–349. https://doi.org/10.1016/j.lrp.2018.12.001

Westerman, G., Bonnet, D., & McAfee, A. (2021). Leading digital: Turning technology into business transformation. Harvard Business Review Press.

Downloads

Published

2026-06-25

How to Cite

Wahid, A., Wihasnanto, H., Siahaan, R. Y., Martiwi, R., & Wijaya, A. (2026). Digital Business Transformation and Its Impact on Organizational Performance in the Banking Industry: The Mediating Role of Digital Capability and Employee Adaptability. Greenation International Journal of Economics and Accounting, 4(3), 418–429. https://doi.org/10.38035/gijea.v4i3.973

Issue

Vol. 4 No. 3 (2026): Greenation International Journal of Economics and Accounting (July - August 2026)

Section

Articles

License

Copyright (c) 2026 Ayi Wahid, Hery Wihasnanto, Rosna Yuherlina Siahaan, Rini Martiwi, Ari Wijaya

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Copyright :

Authors who publish their manuscripts in this journal agree to the following conditions:

  1. Copyright in each article belongs to the author.
  2. The author acknowledges that the GIJEA has the right to be the first to publish under a Creative Commons Attribution 4.0 International license (Attribution 4.0 International CC BY 4.0).
  3. Authors can submit articles separately, arrange the non-exclusive distribution of manuscripts that have been published in this journal to other versions (for example, sent to the author's institutional repository, publication in a book, etc.), by acknowledging that the manuscript has been published for the first time at GIJEA.