Impact of Drivers of Change (Digitalization, Demonetization, and Consolidation of Banks) With Mediating Role of Nature of Training and Job Enrichment on the Banking Performance

Abstract

This paper examines the impact of the drivers of change, that is, digitalization, demonetization, and consolidation of banks as factors affecting training and development. Banking institutions are the real contributors of the GDP in today’s world. The study is based on the data collected from senior bank officers, middle and lower level officers from India. The balanced scorecard is used to determine the performance of the banks with the help of four perspectives, that is, financial, customer, innovative, and growth perspective. Job enrichment helps in adding value to an employee through various techniques and programs. Partial Least Square-Structured Equation Modeling (PLS-SEM) was applied for examining the relation among the drivers of change and job enrichment with Banking Sector Performance. It also examines the mediating role of training between drivers of change and banking sector performance. The results suggest that training along with selected drivers and job enrichment influenced bank performance and value of adjusted R2 is .668. The current research suggests that the role of digitalization, demonetization, and consolidation of banks on banking performance improved with mediation effect of training. This research also highlights that in types of training, special training has higher loading, which implies the need to focus on training and specifically of special training to enhance banking performance.