Digital Transformation Capability and Bank Innovation Performance: The Mediating Role of Financial Innovation——A Case of Industrial and Commercial Bank of China, Guangdong Branch
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Abstract
This research aimed to: 1) identify the influence relationship among the three variables, including the effect of DTC on BIP; the effect of FI on BIP; and the effect of DTC on FI; and 2) explore the mediating effect of financial innovation on the relationship between the digital transformation capability and bank innovation performance. The study sample comprised the Guangdong Branch of ICBC, selected via stratified random sampling. Data were collected by distributing a five-point Likert-scale questionnaire to bank managers via an online platform, yielding 400 valid responses. Descriptive statistics and structural equation modeling (SEM) were employed for data analysis. The findings revealed that: 1) digital transformation capability positively influenced financial innovation (β = 0.961), which in turn positively influenced bank innovation performance (β = 0.742). Digital transformation capability also has a certain impact on bank innovation performance (β = 0.214); and 2) financial innovation served as a mediator between digital transformation capabilities and bank innovation performance, with an indirect effect of 0.714. The theoretical contribution of this study lies in breaking the fragmented approach of the four major theories and constructing a unified framework with a progressive relationship: identifying heterogeneous digital resources based on RBV and considering organizational context based on TOE; emphasizing the dynamic reorganization of resources by organizations based on DCT; explaining the transmission medium (indirect effect) of value creation based on FIT; and ultimately focusing on innovation performance.
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