Quantitative analysis reveals digital capabilities improve firm performance in banks, highlighting marketing services and digital transformation knowledge as key factors.
This study examines the relationship between Digital Capabilities and Firm Performance in banking, analyzing the mediating effects of Marketing Services and moderating effects of Digital Transformation Knowledge and Innovation Investment. Understanding these elements' interaction in banks undergoing digital transformation is crucial. The study used quantitative research through structured questionnaires given to senior bank managers, using five-point Likert scale. Partial least squares structural equation Modeling analyzed the data. Results show digital capabilities positively impact marketing services and improve firm performance. Marketing services partially mediate relationship between digital capabilities and performance.Digital transformation knowledge strengthens the relationship between digital capabilities and marketing services, while innovative investment intensifies marketing services' effect on performance. Banks should enhance digital skills, invest in marketing services, and allocate resources to innovation to improve outcomes. This study explains how digital capabilities, combined with marketing efforts, digital knowledge, and innovation, enhance performance using Dynamic Capability Theory in developing economy banks.
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Ashfaq et al. (2025) studied this question.
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