Digital Organisational Culture: Capturing Local Banking in Digital Transformation

Rachman Wintarto; Meiliani Meiliani; Angelina Carolin

doi:10.23887/ijssb.v7i4.72306

Authors

Rachman Wintarto Manager Cabang Bank Bengkulu, Jakarta, Indonesia
Meiliani Meiliani Jurusan Manajemen, Universitas Bengkulu, Bengkulu, Indonesia
Angelina Carolin Program Studi Keuangan dan Perbankan, AKUB GAK Pontianak, Pontianak, Indonesia

DOI:

https://doi.org/10.23887/ijssb.v7i4.72306

Keywords:

Digitalisation, Digital Culture, Digital Transformation, Organisational Culture, Banking

Abstract

Digital transformation in banking is a must and related to the culture in an organization to serve customers using digital technology to transform the internal processes of the business. Therefore, the purpose of this study is to analyze the process of digital transformation and the role of digital organizational culture in digital transformation in local banking. The sample of this study is employees who work at Bank Bengkulu (Bank of Bengkulu) which is a local government-owned bank. The research was conducted with a qualitative approach using open-ended questions with the e-survey questionnaire method. The collected data are analyzed using thematic analysis techniques. Research findings show that micro themes of digital transformation, such as outside-in, cross-work collaboration, work creativity, and agile leadership, are still not significantly developed at Bank Bengkulu. In addition, cultural behavior, digitalization capabilities, digitization skills, IT infrastructure, and business processes are also still weak. Some technology programs are still in the early stages of development and progress is slow. In conclusion, this study illustrates that digital transformation and digital organizational culture are still not significantly developed at Bank Bengkulu. Constraints such as inadequate human resource skills, weak IT infrastructure, and lack of responsiveness in the face of change need to be considered. The implication of the results of this study is the importance of attention to digital skills development, IT infrastructure improvement, and organizational culture change to achieve successful digital transformation at Bank Bengkulu.

References

Amankwah-Amoah, J., Khan, Z., Wood, G., & Knight, G. (2021). COVID-19 and digitalization: The great acceleration. Journal of Business Research, 136, 602–611. https://doi.org/10.1016/j.jbusres.2021.08.011. DOI: https://doi.org/10.1016/j.jbusres.2021.08.011

Ben-Zvi, T., & Luftman, J. (2022). Post-pandemic IT: digital transformation and sustainability. Sustainability, 14(22). https://doi.org/10.3390/su142215275. DOI: https://doi.org/10.3390/su142215275

Braun, V., Clarke, V., & Hayfield, N. (2022). ‘A starting point for your journey, not a map’: Nikki Hayfield in conversation with Virginia Braun and Victoria Clarke about thematic analysis. Qualitative Research in Psychology, 19(2), 424–445. https://doi.org/10.1080/14780887.2019.1670765. DOI: https://doi.org/10.1080/14780887.2019.1670765

Brunetti, F., Matt, D. T., Bonfanti, A., De Longhi, A., Pedrini, G., & Orzes, G. (2020). Digital transformation challenges: strategies emerging from a multi-stakeholder approach. The TQM Journal, 32(4), 697–724. https://doi.org/10.1108/TQM-12-2019-0309. DOI: https://doi.org/10.1108/TQM-12-2019-0309

Cascio, W. F., & Montealegre, R. (2016). How technology is changing work and organizations. Annual Review of Organizational Psychology and Organizational Behavior, 3, 349–375. https://doi.org/10.1146/annurev-orgpsych-041015-062352. DOI: https://doi.org/10.1146/annurev-orgpsych-041015-062352

Cennamo, C., Dagnino, G. B., Di Minin, A., & Lanzolla, G. (2020). Managing Digital Transformation: Scope of Transformation and Modalities of Value Co-Generation and Delivery. California Management Review, 62(4), 5–16. https://doi.org/10.1177/0008125620942136. DOI: https://doi.org/10.1177/0008125620942136

Chanias, S., Myers, M. D., & Hess, T. (2019). Digital transformation strategy making in pre-digital organizations: The case of a financial services provider. The Journal of Strategic Information Systems, 28(1), 17–33. https://doi.org/10.1016/j.jsis.2018.11.003. DOI: https://doi.org/10.1016/j.jsis.2018.11.003

Chauhan, C., Parida, V., & Dhir, A. (2022). Linking circular economy and digitalisation technologies: A systematic literature review of past achievements and future promises. Technological Forecasting and Social Change, 177. https://doi.org/10.1016/j.techfore.2022.121508. DOI: https://doi.org/10.1016/j.techfore.2022.121508

Clarysse, B., Wright, M., Bruneel, J., & Mahajan, A. (2014). Creating value in ecosystems: Crossing the chasm between knowledge and business ecosystems. Research Policy, 43(7), 1164–1176. https://doi.org/10.1016/j.respol.2014.04.014. DOI: https://doi.org/10.1016/j.respol.2014.04.014

Creswell, J. W., & Creswell, J. D. (2017). Research design: Qualitative, quantitative, and mixed methods approaches. Sage publications.

Fernandez-Vidal, J., Perotti, F. A., Gonzalez, R., & Gasco, J. (2022). Managing digital transformation: The view from the top. Journal of Business Research, 152, 29–41. https://doi.org/10.1016/j.jbusres.2022.07.020. DOI: https://doi.org/10.1016/j.jbusres.2022.07.020

Flores, W. R., Antonsen, E., & Ekstedt, M. (2014). Information security knowledge sharing in organizations: Investigating the effect of behavioral information security governance and national culture. Computers & Security, 43, 90–110. https://doi.org/10.1016/j.cose.2014.03.004. DOI: https://doi.org/10.1016/j.cose.2014.03.004

Furr, N., Ozcan, P., & Eisenhardt, K. M. (2022). What is digital transformation? Core tensions facing established companies on the global stage. Global Strategy Journal, 12(4), 595–618. https://doi.org/10.1002/gsj.1442. DOI: https://doi.org/10.1002/gsj.1442

Galpin, T., Whitttington, J. L., & Bell, G. (2015). Is your sustainability strategy sustainable? Creating a culture of sustainability. Corporate Governance, 15(1), 1–17. https://doi.org/10.1108/CG-01-2013-0004. DOI: https://doi.org/10.1108/CG-01-2013-0004

Gawer, A., & Cusumano, M. A. (2014). Industry platforms and ecosystem innovation. Journal of Product Innovation Management, 31(3), 417–433. https://doi.org/10.1111/jpim.12105. DOI: https://doi.org/10.1111/jpim.12105

Gobble, M. M. (2018). Digital strategy and digital transformation. Research-Technology Management, 61(5), 66–71. https://doi.org/10.1080/08956308.2018.1495969. DOI: https://doi.org/10.1080/08956308.2018.1495969

Goran, J., LaBerge, L., & Srinivasan, R. (2017). Culture for a digital age. McKinsey Quarterly, 3(1), 56–67. https://lediag.net/wp-content/uploads/2018/05/0-Culture-for-a-digital-age.pdf.

Jamil, S. (2021). From digital divide to digital inclusion: Challenges for wide-ranging digitalization in Pakistan. Telecommunications Policy, 45(8). https://doi.org/10.1016/j.telpol.2021.102206. DOI: https://doi.org/10.1016/j.telpol.2021.102206

Kaur, S. J., Ali, L., Hassan, M. K., & Al-Emran, M. (2021). Adoption of digital banking channels in an emerging economy: exploring the role of in-branch efforts. Journal of Financial Services Marketing, 26, 107–121. https://doi.org/10.1057/s41264-020-00082-w. DOI: https://doi.org/10.1057/s41264-020-00082-w

Kitsios, F., Giatsidis, I., & Kamariotou, M. (2021). Digital Transformation and Strategy in the Banking Sector: Evaluating the Acceptance Rate of E-Services. Journal of Open Innovation: Technology, Market, and Complexity, 7(3), 204. https://doi.org/10.3390/joitmc7030204. DOI: https://doi.org/10.3390/joitmc7030204

Konopik, J., Jahn, C., Schuster, T., Hoßbach, N., & Pflaum, A. (2022). Mastering the digital transformation through organizational capabilities: A conceptual framework. Digital Business, 2(2). https://doi.org/10.1016/j.digbus.2021.100019. DOI: https://doi.org/10.1016/j.digbus.2021.100019

Kopalle, P. K., Kumar, V., & Subramaniam, M. (2020). How legacy firms can embrace the digital ecosystem via digital customer orientation. Journal of the Academy of Marketing Science, 48, 114–131. https://doi.org/10.1007/s11747-019-00694-2. DOI: https://doi.org/10.1007/s11747-019-00694-2

Kudyba, S. (2020). COVID-19 and the Acceleration of Digital Transformation and the Future of Work. Information Systems Management, 37(4), 284–287. https://doi.org/10.1080/10580530.2020.1818903. DOI: https://doi.org/10.1080/10580530.2020.1818903

Lam, L., Nguyen, P., Le, N., & Tran, K. (2021). The relation among organizational culture, knowledge management, and innovation capability: Its implication for open innovation. Journal of Open Innovation: Technology, Market, and Complexity, 7(1), 66. https://doi.org/10.3390/joitmc7010066. DOI: https://doi.org/10.3390/joitmc7010066

Leal-Rodríguez, A. L., Sanchís-Pedregosa, C., Moreno-Moreno, A. M., & Leal-Millán, A. G. (2023). Digitalization beyond technology: Proposing an explanatory and predictive model for digital culture in organizations. Journal of Innovation & Knowledge, 8(3). https://doi.org/10.1016/j.jik.2023.100409. DOI: https://doi.org/10.1016/j.jik.2023.100409

Mariani, M. M., & Wamba, S. F. (2020). Exploring how consumer goods companies innovate in the digital age: The role of big data analytics companies. Journal of Business Research, 121, 338–352. https://doi.org/10.1016/j.jbusres.2020.09.012. DOI: https://doi.org/10.1016/j.jbusres.2020.09.012

Martínez-Caro, E., Cegarra-Navarro, J. G., & Alfonso-Ruiz, F. J. (2020). Digital technologies and firm performance: The role of digital organisational culture. Technological Forecasting and Social Change, 154. https://doi.org/10.1016/j.techfore.2020.119962. DOI: https://doi.org/10.1016/j.techfore.2020.119962

Mergel, I., Edelmann, N., & Haug, N. (2019). Defining digital transformation: Results from expert interviews. Government Information Quarterly, 36(4). https://doi.org/10.1016/j.giq.2019.06.002. DOI: https://doi.org/10.1016/j.giq.2019.06.002

Mugge, P., Abbu, H., Michaelis, T. L., Kwiatkowski, A., & Gudergan, G. (2020). Patterns of digitization: A practical guide to digital transformation. Research-Technology Management, 63(2), 27–35. https://doi.org/10.1080/08956308.2020.1707003. DOI: https://doi.org/10.1080/08956308.2020.1707003

Nadkarni, S., & Prügl, R. (2021). Digital transformation: a review, synthesis and opportunities for future research. Management Review Quarterly, 71, 233–341. https://doi.org/10.1007/s11301-020-00185-7. DOI: https://doi.org/10.1007/s11301-020-00185-7

Naimi-Sadigh, A., Asgari, T., & Rabiei, M. (2021). Digital transformation in the value chain disruption of banking services. Journal of the Knowledge Economy, 13, 1212–1242. https://doi.org/10.1007/s13132-021-00759-0. DOI: https://doi.org/10.1007/s13132-021-00759-0

Osei, L. K., Cherkasova, Y., & Oware, K. M. (2023). Unlocking the full potential of digital transformation in banking: a bibliometric review and emerging trend. Future Business Journal, 9(1), 30. https://doi.org/10.1186/s43093-023-00207-2. DOI: https://doi.org/10.1186/s43093-023-00207-2

Philip, J. (2021). Viewing Digital Transformation through the Lens of Transformational Leadership. Journal of Organizational Computing and Electronic Commerce, 31(2), 114–129. https://doi.org/10.1080/10919392.2021.1911573. DOI: https://doi.org/10.1080/10919392.2021.1911573

Piening, E. P., Salge, T. O., Antons, D., & Kreiner, G. E. (2020). Standing Together or Falling Apart? Understanding Employees’ Responses to Organizational Identity Threats. Academy of Management Review, 45(2), 325–351. https://doi.org/10.5465/amr.2016.0457. DOI: https://doi.org/10.5465/amr.2016.0457

Price, P. C., Jhangiani, R., & Chiang, I. C. A. (2015). Research methods in psychology. BCCampus.

Rahmadyah, N., & Aslami, N. (2022). Strategi Manajemen perubahan perusahaan di era transformasi digital. Ekonam: Jurnal Ekonomi, Akuntansi & Manajemen, 4(2), 91–96. https://doi.org/10.37577/ekonam.v4i2.441. DOI: https://doi.org/10.37577/ekonam.v4i2.441

Saarikko, T., Westergren, U. H., & Blomquist, T. (2020). Digital transformation: Five recommendations for the digitally conscious firm. Business Horizons, 63(6), 825–839. https://doi.org/10.1016/j.bushor.2020.07.005. DOI: https://doi.org/10.1016/j.bushor.2020.07.005

Schneider, S., & Kokshagina, O. (2021). Digital transformation: What we have learned (thus far) and what is next. Creativity and Innovation Management, 30(2), 384–411. https://doi.org/10.1111/caim.12414. DOI: https://doi.org/10.1111/caim.12414

Serenko, A., & Bontis, N. (2016). Understanding counterproductive knowledge behavior: antecedents and consequences of intra-organizational knowledge hiding. Journal of Knowledge Management, 20(6), 1199–1224. https://doi.org/10.1108/JKM-05-2016-0203. DOI: https://doi.org/10.1108/JKM-05-2016-0203

Soto-Acosta, P. (2020). COVID-19 Pandemic: Shifting Digital Transformation to a High-Speed Gear. Information Systems Management, 37(4), 260–266. https://doi.org/10.1080/10580530.2020.1814461. DOI: https://doi.org/10.1080/10580530.2020.1814461

Spigel, B. (2017). The Relational Organization of Entrepreneurial Ecosystems. Entrepreneurship Theory and Practice, 41(1), 49–72. https://doi.org/10.1111/etap.12167. DOI: https://doi.org/10.1111/etap.12167

Tekic, Z., & Koroteev, D. (2019). From disruptively digital to proudly analog: A holistic typology of digital transformation strategies. Business Horizons, 62(6), 683–693. https://doi.org/10.1016/j.bushor.2019.07.002. DOI: https://doi.org/10.1016/j.bushor.2019.07.002

Van Veldhoven, Z., & Vanthienen, J. (2022). Digital transformation as an interaction-driven perspective between business, society, and technology. Electronic Markets, 32(2), 629–644. https://doi.org/10.1007/s12525-021-00464-5. DOI: https://doi.org/10.1007/s12525-021-00464-5

Volberda, H. W., Khanagha, S., Baden-Fuller, C., Mihalache, O. R., & Birkinshaw, J. (2021). Strategizing in a digital world: Overcoming cognitive barriers, reconfiguring routines and introducing new organizational forms. Long Range Planning, 54(5). https://doi.org/10.1016/j.lrp.2021.102110. DOI: https://doi.org/10.1016/j.lrp.2021.102110

Wang, B., Zheng, P., Yin, Y., Shih, A., & Wang, L. (2022). Toward human-centric smart manufacturing: A human-cyber-physical systems (HCPS) perspective. Journal of Manufacturing Systems, 63, 471–490. https://doi.org/10.1016/j.jmsy.2022.05.005. DOI: https://doi.org/10.1016/j.jmsy.2022.05.005

Warner, K. S., & Wäger, M. (2019). Building dynamic capabilities for digital transformation: An ongoing process of strategic renewal. Long Range Planning, 52(3), 326–349. https://doi.org/10.1016/j.lrp.2018.12.001. DOI: https://doi.org/10.1016/j.lrp.2018.12.001

Yeow, A., Soh, C., & Hansen, R. (2018). Aligning with new digital strategy: A dynamic capabilities approach. The Journal of Strategic Information Systems, 27(1), 43–58. https://doi.org/10.1016/j.jsis.2017.09.001. DOI: https://doi.org/10.1016/j.jsis.2017.09.001