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Purpose This study examines the relationship between cultural values and digital transformation performance (DTP) in Islamic banking while investigates the moderating role of work engagement. Design/methodology/approach Using institutional theory and work engagement theory, survey data were collected from 550 employees across five Islamic banks in Kuwait and analyzed using PLS-SEM. Findings Power distance, uncertainty avoidance, collectivism, and long-term orientation positively influence DTP. Indulgence has a negative effect, while masculinity is insignificant. Work engagement strengthens the effects of uncertainty avoidance and long-term orientation and reduces the negative impact of indulgence, but does not affect power distance, collectivism or masculinity. Practical implications Managers should use clear structures, formal procedures, teamwork, and long-term planning to support DT. Strengthening employee engagement through training, communication and participation is critical for improving adaptability and sustaining transformation. Originality/value This study advances work engagement theory by showing that engagement plays a conditional role, strengthening adaptive and long-term cultural effects while reducing weaker behavioral discipline. It highlights that institutional alignment alone is insufficient without active employee involvement.
Tan et al. (Wed,) studied this question.