Impact of digital transformation on the organization’s financial performance: A case of Jordanian commercial banks listed on the Amman Stock Exchange

  • Received October 26, 2023;
    Accepted February 14, 2024;
    Published March 4, 2024
  • Author(s)
  • DOI
    http://dx.doi.org/10.21511/bbs.19(1).2024.11
  • Article Info
    Volume 19 2024, Issue #1, pp. 126-134
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Digital transformation refers to strategic activities undertaken by organizations to improve and simplify their process and even alter their business models with abreast to enhance firm performance. Thus, the aim of this study was to analyze the impact of digital transformation on organizational performance among the Jordanian commercial banks listed on the Amman Stock Exchange. The descriptive research design was used in this quantitative study. Primary data were collected to achieve the objectives of the study. The target population was employees (managers and non-managers) of Jordanian commercial banks listed on the Amman Stock Exchange. The sample size was selected using Krejcie and Morgan rule; after data cleaning procedures, the final sample of 282 respondents was used for final analysis. The study employed regression analysis to arrive at the results. The results confirm that digital transformation has a significant positive effect on customer experience and IT innovation. These results were significant at a 1% level. The results also confirm that digital transformation has a significant positive effect on firm performance, with a significance level of 1%. Moreover, the significant positive impact of customer experience and IT innovation was confirmed. Therefore, the significant positive impact of digital transformation on firm performance was found viz-a-viz direct as well as indirect route.

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    • Table 1. Respondents from each bank
    • Table 2. Demographic profile of respondents
    • Table 3. Descriptive statistics
    • Table 4. Regression results
    • Conceptualization
      Nahed Habis Alrawashedh
    • Data curation
      Nahed Habis Alrawashedh
    • Formal Analysis
      Nahed Habis Alrawashedh
    • Software
      Nahed Habis Alrawashedh
    • Supervision
      Nahed Habis Alrawashedh
    • Validation
      Nahed Habis Alrawashedh, Mohammad Fawzi Shubita
    • Visualization
      Nahed Habis Alrawashedh
    • Writing – review & editing
      Nahed Habis Alrawashedh
    • Funding acquisition
      Mohammad Fawzi Shubita
    • Investigation
      Mohammad Fawzi Shubita
    • Methodology
      Mohammad Fawzi Shubita
    • Project administration
      Mohammad Fawzi Shubita
    • Resources
      Mohammad Fawzi Shubita
    • Writing – original draft
      Mohammad Fawzi Shubita