Impact of Digital Transformation on Organizational Performance: The Mediating Role of Organizational Agility — Evidence from Private Sector Banks in Pakistan

Abstract

There have been some important technological developments happening in the banking industry which make it mandatory for the organizations to go through the process of digital transformation. This study is about the effect of digital transformation on organizational performance and moderation role of organizational agility in private sector banks of Pakistan. The data has been gathered from 474 bankers of Habib Bank Limited, United Bank Limited, MCB Bank Limited, and Bank Alfalah through a structured questionnaire. The quantitative cross-sectional research design has been used to gather and analyze the data through correlation, multiple regression, and mediation analysis using Hayes PROCESS Model 4. It has been observed that there is a positive relationship between digital transformation and organizational performance (β = 0.48, p < 0.001). There is a significant positive relationship between digital transformation and organizational agility (β = 0.61, p < 0.001), while organizational agility significantly affects organizational performance (β = 0.42, p < 0.001). There is also the partial mediation role of organizational agility between digital transformation and organizational performance.