Digital Transformation and Firm Performance Nexus: A Study of Commercial Banks in Delta State, Nigeria
Keywords:
Digital transformation, Firm performance, Organisational learning, Information technology capabilities, BanksAbstract
Digital transformation has become imperative for most firms to compete favorably in today’s highly competitive and changing environment, but its influence on firm performance remains unclear. Due to this challenge, the study aimed to determine how digital transformation affects firm performance by accounting for the mediating mechanism of organizational learning. The study used a cross-sectional survey to obtain data from 284 mid-level employees sampled from commercial banks in Delta State, Nigeria. The data was evaluated with the partial least squares [PLS] approach to structural equation modeling. The PLS analysis reveals that digital transformation positively and significantly affected firm performance directly and indirectly through organizational learning at the 0.05 significance level. Additionally, the effect of organizational learning was more profound on organizational performance than digital transformation. Consequently, organizational learning can optimize the impact of digital transformation on organizational performance. The study, among other things, recommended that banks move beyond the euphoria of mere technology adoption and implementation to the active development of technological capabilities, which helps leverage technological resources to support a firm's strategy, practices, and performance.
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