Measurement Digital Transformation Capability on Operational Performance (Case Study: Bank BJB)

Abstract

With the changes in market environments and the development of digital technology, the banking industry urgently needs to develop the capability to adapt to profound changes in strategy and business processes. This study constructed the dimensions of a digital transformation capability that contains threehub factors (sensing, organizing, and restructuring) under the dynamic capability theory. This study collected 100 sets of company data through a survey and investigated the relationships of a company’s strategy orientation, digital transformation capability, and operational performance by using SPSS and SmartPLS. The results show that strategic orientation (Customer Orientation and Technology Orientation) has a positive impact on a digital transformation capability and that digital transformation capability has a positive impact on operational performance. In addition, the digital transformation capability plays a mediating role between strategic orientation and operational performance. Doubtlessly, the company needs, to focus on building their own digital transformation capabilities (Sensing, Organizi,ng and restructuring) to create new business value. A digital transformation capability will encourage company to integrate their business processes and routines through digital technology to achieve a competitive advantage.