Abstract
The role of digital transformation in creating value for commercial banks has been interesting to researchers for a long time. While many commercial banks have significantly investigated digital transformation, researchers and managers have still met many difficulties examining the distribution of digital transformation to business performance. This paper aims to evaluate the impact of digital transformation on Vietnamese commercial banks’ performance by different sizes, from there proposing policy implications of digital transformation to improve the banking performance. To achieve this goal, we used a quantitative research method. Specifically, we applied the GMM system (SGMM) of Blundell and Bond for the data of 13 joint-stock commercial banks in Vietnam in the period from 2011 to 2019. Then Bayesian analysis is performed to test the robustness of the models estimated by the SGMM method. The result shows that the digital transformation has a positive impact on the performance of Vietnamese commercial banks. Besides, we also find that the larger the banks, the greater the positive impact of digital transformation on bank performance. Therefore, the efficiency of digital transformation depends on a bank scale.
Highlights
The Fourth Industrial Revolution has created a driving force for the application of technology in business activities
The method of thisofpaper is based on theonbackgrounds of Solow neutral technical
The method this paper is based the backgrounds of Solow neutral technical progress, technical acceptance (TAM), diffusion of innovation progress, technical acceptance modelmodel (TAM), diffusion of innovation theorytheory (DIT),(DIT), and and resource-based
Summary
The Fourth Industrial Revolution has created a driving force for the application of technology in business activities. With the strong development of high-speed internet, cloud computing, and blockchain technology, the Industrial Revolution 4.0 is changing the way businesses operate, the way they do business, and the behavior of consumers (Tan et al.2021). Digital transformation is a process that aims to improve an entity by making significant changes to its properties through a combination of information, computing, communication, and connectivity technologies (Vial 2019). This definition shows that digital transformation can significantly change the business activities of enterprises by applying modern technologies. Changing and diversifying the operating methods of businesses is understandable since the concept of digital transformation was proposed
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