Influence Of Digital Transformation On Firm Performance With Digital Innovation As An Intervening Variable

Abstract

In the era of rapid technological advancements, digital transformation has emerged as a pivotal element for organizations seeking to enhance their competitive advantage and overall performance. This paper explores the relationship between digital transformation and firm performance, with a specific focus on digital innovation as an intervening variable. By synthesizing existing literature and presenting empirical evidence, we aim to elucidate how digital transformation initiatives influence organizational outcomes through the lens of digital innovation. Banking institutions are facing increasing pressure due to the swift evolution of technologies and work methodologies. Implementation of digital transformation is crucial for them to stay current, but there are numerous other considerations that organizations must address within the fiercely competitive landscape they operate in. Hence, a holistic analysis of the impact of digital transformation on Indian Banks is imperative. This research endeavors to explore this impact by assessing how digital innovation mediates organizational performance. To achieve this, a survey was carried out among employees of selected private banks of Chhattisgarh. The results indicate that the Social and technological performance, intricately intertwined, finds its catalyst in digital innovation. Guided by the diverse perspectives of social and technological realms, digital innovation serves a driving force behind the transformation of businesses in the digital era.