Factors driving digital transformation: Technological, organizational, and environmental perspectives from Jordanian banks

In recent years, the digital transformation of financial institutions has gained the attention of researchers and practitioners all over the world. This study investigates the impact of organizational, environmental, and technological factors on the digital transformation process of Jordanian banks....

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Main Author: Mohammad O. Al-Smadi
Format: Article
Language:English
Published: LLC "CPC "Business Perspectives" 2025-02-01
Series:Banks and Bank Systems
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Online Access:https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/21645/BBS_2025_01_Al-Smadi.pdf
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author Mohammad O. Al-Smadi
author_facet Mohammad O. Al-Smadi
author_sort Mohammad O. Al-Smadi
collection DOAJ
description In recent years, the digital transformation of financial institutions has gained the attention of researchers and practitioners all over the world. This study investigates the impact of organizational, environmental, and technological factors on the digital transformation process of Jordanian banks. The approach used in this study is quantitative, and an online questionnaire was forwarded to employees in 15 Jordanian banks. The convenience sampling method was utilized to collect data from 286 participants with a response rate of 35%. Partial least squares structural equation modeling was used for analysis. The results show a significant positive relationship between organizational, environmental, and technological factors and digital transformation, which confirmed the imperative role of organizational, technological, and environmental factors in the digital transition process in Jordanian banks. The results highlight the need for Jordanian banks to develop explicit strategies that involve the integration of new technologies, regulatory frameworks that encourage modern technology adoption, and dealing with different environmental factors. The study thus proposes recommendations for Jordanian banks to achieve maximum benefit from digital transformation and manage the difficulties arising from this transformation in the changing banking sector.
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institution Kabale University
issn 1816-7403
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language English
publishDate 2025-02-01
publisher LLC "CPC "Business Perspectives"
record_format Article
series Banks and Bank Systems
spelling doaj-art-63a08d5195f84da28b886abdbacadbc22025-08-20T03:51:48ZengLLC "CPC "Business Perspectives"Banks and Bank Systems1816-74031991-70742025-02-01201748210.21511/bbs.20(1).2025.0721645Factors driving digital transformation: Technological, organizational, and environmental perspectives from Jordanian banksMohammad O. Al-Smadi0https://orcid.org/0000-0002-5100-7910Assistant Professor, Department of Finance and Banking, Faculty of Business, Philadelphia University, AmmanIn recent years, the digital transformation of financial institutions has gained the attention of researchers and practitioners all over the world. This study investigates the impact of organizational, environmental, and technological factors on the digital transformation process of Jordanian banks. The approach used in this study is quantitative, and an online questionnaire was forwarded to employees in 15 Jordanian banks. The convenience sampling method was utilized to collect data from 286 participants with a response rate of 35%. Partial least squares structural equation modeling was used for analysis. The results show a significant positive relationship between organizational, environmental, and technological factors and digital transformation, which confirmed the imperative role of organizational, technological, and environmental factors in the digital transition process in Jordanian banks. The results highlight the need for Jordanian banks to develop explicit strategies that involve the integration of new technologies, regulatory frameworks that encourage modern technology adoption, and dealing with different environmental factors. The study thus proposes recommendations for Jordanian banks to achieve maximum benefit from digital transformation and manage the difficulties arising from this transformation in the changing banking sector.https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/21645/BBS_2025_01_Al-Smadi.pdfbanking sectordigital transformationenvironmental factorsorganizational factorstechnological factors
spellingShingle Mohammad O. Al-Smadi
Factors driving digital transformation: Technological, organizational, and environmental perspectives from Jordanian banks
Banks and Bank Systems
banking sector
digital transformation
environmental factors
organizational factors
technological factors
title Factors driving digital transformation: Technological, organizational, and environmental perspectives from Jordanian banks
title_full Factors driving digital transformation: Technological, organizational, and environmental perspectives from Jordanian banks
title_fullStr Factors driving digital transformation: Technological, organizational, and environmental perspectives from Jordanian banks
title_full_unstemmed Factors driving digital transformation: Technological, organizational, and environmental perspectives from Jordanian banks
title_short Factors driving digital transformation: Technological, organizational, and environmental perspectives from Jordanian banks
title_sort factors driving digital transformation technological organizational and environmental perspectives from jordanian banks
topic banking sector
digital transformation
environmental factors
organizational factors
technological factors
url https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/21645/BBS_2025_01_Al-Smadi.pdf
work_keys_str_mv AT mohammadoalsmadi factorsdrivingdigitaltransformationtechnologicalorganizationalandenvironmentalperspectivesfromjordanianbanks