Zelalem G/TsadikChala Tadesse2026-11-112026-11-112026-05-23https://etd.aau.edu.et/handle/123456789/9472This research empirically examines the relation between bank digital transformation, executives’ innovation awareness and executives’ technical background, corporate governance performance, and operational efficiency. The study employed a quantitative method. Data were gathered through surveys n=345 from banking professionals (branch managers, directors, executives and board of directors) across Awash Bank's Addis Ababa regional offices. Partial Least Squares Structural Equation Modeling (PLS-SEM) was used to analyze the data. Drawing on Dynamic Capabilities Theory, Resource-Based View, and Agency Theory, the study proposes and tests six hypotheses. Hypothesis testing confirmed two significant direct effects and four significant moderation effects, all at p < 0.001. Digital transformation positively and significantly influenced both operational efficiency (β = 0.227, p < 0.001) and corporate governance performance (β = 0.203, p < 0.001)' before moderation results. Furthermore, executives’ technical background positively moderates the relationship between digital transformation and operational efficiency (β = 0.225). Simple slope analysis demonstrated the moderation effect at low, moderate and high level. When executives’ technical background was low, slope of bank digital transformation on operational efficiency was near zero (β = 0.002), rising to 0.452 at high levels. For executive innovation awareness on corporate governance performance, slope ranged from −0.074 (low) to 0.480 (high). However, when technical background is high the slope strengthens and reaches 0.554 from low to high levels. The model demonstrated strong explanatory power with R² values of 0.698 for corporate governance performance and 0.688 for operational efficiency. The model demonstrated high predictive relevance (Q² > 0.60) and meaningful effect sizes for all constructs. The result demonstrates 69.8% of variance in corporate governance performance and 68.8% in operational efficiency, as a result both them shows significant explanatory power. The findings suggest that executive capability development programs should accompany digital investment strategies to maximize governance and efficiency returns.enBank Digital TransformationExecutive Innovation AwarenessExecutive Technical BackgroundCorporate Governance PerformanceOperational EfficiencyPLS-SEMAwash BankThesis