Background The contemporary world is undergoing rapid changes due to digitization and globalization, requiring institutions, especially in the financial sector, to adapt to complex multicultural and technological environments. Many organizations, particularly in the Iraqi financial sector, struggle to achieve effective smart governance and fully realize digital transformation due to limited integration of institutional cultural intelligence in their administrative and digital practices. Objective This study aims to examine the role of institutional cultural intelligence in enhancing digital transformation and smart governance at the Central Bank of Iraq, focusing on its cognitive, metacognitive, motivational, and behavioral dimensions. Methods A quantitative field study was conducted using structured questionnaires distributed to 120 employees from senior and middle management at the Central Bank of Iraq. A total of 114 valid responses were analyzed. The study employed a descriptive-analytical approach to examine the relationships between institutional cultural intelligence, digital transformation, and smart governance. Results Institutional cultural intelligence was found to significantly contribute to digital transformation, explaining 62.9% of the variance, and had a moderate effect on smart governance, accounting for 26.5% of the variance. Behavioral intelligence emerged as the most influential dimension. Conclusions The findings indicate that fostering cultural and technical development programs is essential to strengthen digital integration, improve governance performance, and support strategic organizational outcomes. This study underscores the practical and managerial implications of leveraging institutional cultural intelligence to enhance both digital and governance capacities in financial institutions.
Eidan et al. (Tue,) studied this question.