Digital Transformation and Organizational Performance: the Mediating Role of Innovation in the Context of Hibret Bank
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Date
2025-01-29
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A.A.U
Abstract
The aim of this research is to examine the digital transformation and organizational performance: the mediating role of innovation in the context of Hibret bank. Explanatory research design and mixed research approach were employed. By systematic sampling techniques a total of 275 participant were become a part of a study. Questionnaire, interview and focus group discussion were used as a data collection tool. To analyse the collected data, SPSS version 26 was used. The finding revealed that Hibret Bank leverages a combination of core banking systems, Oracle FLEXCUBE, mobile and internet banking platforms, ATM/POS networks, and agent banking systems, and cybersecurity measures to drive its digital transformation efforts. These systems not only enhance the efficiency of banking operations but also improve customer service, accessibility, and security. The main challenges of digital transformation are integrating new technologies with existing systems, Lack of a clear digital strategy, Resistance to change from employees, insufficient budget for digital transformation initiatives, and Lack of skilled personnel. From inferential analysis, all independent factors have a positive correlation with, organizational performance. Organizational performance is significantly connected to the linear combination of the parameters. Innovation as mediating variable has half of explanatory Power. Based on the finding, the bank should develop a compressive and clear digital strategy that integrates the services of each department and branch as well as customer demands.
Key words digital transformation, Operational efficiency, decision making, innovation cooperatives, Organizational performance