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Business Transformation in a Distinctive Institutional Setting: A Study of Regional Development Banks in Indonesia

Author

Listed:
  • Audy Thuda

    (Management Department, BINUS Business School Doctor of Research in Management, Bina Nusantara University, Jakarta 11480, Indonesia)

  • Mohammad Hamsal

    (Management Department, BINUS Business School Doctor of Research in Management, Bina Nusantara University, Jakarta 11480, Indonesia)

  • Dezie Leonarda Warganegara

    (Management Department, BINUS Business School Doctor of Research in Management, Bina Nusantara University, Jakarta 11480, Indonesia)

  • Pantri Heriyati

    (Management Department, BINUS Business School Doctor of Research in Management, Bina Nusantara University, Jakarta 11480, Indonesia)

Abstract

Limited research exists on business transformation strategy within the Indonesian banking sector, particularly regarding regional development banks, which play a crucial role in regional economic advancement. This study investigates the drivers of successful business transformation in Indonesian RDBs and their impact on organizational performance, examining the moderating role of regional government intervention. Employing structural equation modeling, the study analyzed data from 255 branch managers across 27 RDBs. Results reveal that talent development, transformational leadership, and digital adoption significantly drive successful business transformation, which in turn enhances organizational performance. Contrary to expectations, regional government intervention did not demonstrate a moderating effect. This study provides valuable insights for RDB managers and policymakers, emphasizing the imporace of talent development, leadership, and digital adoption as key pillars of successful transformation and highlighting the need for a nuanced understanding of institutional influences within this sector.

Suggested Citation

  • Audy Thuda & Mohammad Hamsal & Dezie Leonarda Warganegara & Pantri Heriyati, 2024. "Business Transformation in a Distinctive Institutional Setting: A Study of Regional Development Banks in Indonesia," Administrative Sciences, MDPI, vol. 14(11), pages 1-27, November.
    • Handle: RePEc:gam:jadmsc:v:14:y:2024:i:11:p:299-:d:1518771
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    References listed on IDEAS

    as
    1. Md. Nur Alam Siddik & Gang Sun & Sajal Kabiraj & Joghee Shanmugan & Cui Yanjuan, 2016. "Impacts of e-banking on performance of banks in a developing economy: empirical evidence from Bangladesh," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 17(6), pages 1066-1080, November.
    2. Chun-Liang Chen & Yao-Chin Lin & Wei-Hung Chen & Cheng-Fu Chao & Henry Pandia, 2021. "Role of Government to Enhance Digital Transformation in Small Service Business," Sustainability, MDPI, vol. 13(3), pages 1-24, January.
    3. Santos, Susana C. & Liguori, Eric W. & Garvey, Erin, 2023. "How digitalization reinvented entrepreneurial resilience during COVID-19," Technological Forecasting and Social Change, Elsevier, vol. 189(C).
    4. Yuanshuo Xu & Jiahe Liang & Zhaoyingzi Dong & Minjun Shi, 2022. "Can Environmental Regulation Promote Green Innovation and Productivity? The Moderating Role of Government Interventions in Urban China," IJERPH, MDPI, vol. 19(21), pages 1-17, October.
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