IDEAS home Printed from https://ideas.repec.org/a/gam/jadmsc/v14y2024i11p299-d1518771.html

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
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2076-3387/14/11/299/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2076-3387/14/11/299/
    Download Restriction: no
    ---><---

    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. Md. Imran Hossain, 2021. "Effects of E-Banking Adoption on the Financial Performance of State-Owned Commercial Banks in Bangladesh," Information Resources Management Journal (IRMJ), IGI Global, vol. 34(4), pages 1-20, October.
    3. Kamaludin & Muhammad Nashsyah, 2020. "Modelling the competitiveness of regional bank: empirical evidence from Sumatera, Indonesia," International Journal of Business and Globalisation, Inderscience Enterprises Ltd, vol. 25(1), pages 23-45.
    4. 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.
    5. Md. Imran Hossain, 2021. "Effects of E-Banking Adoption on the Financial Performance of State-Owned Commercial Banks in Bangladesh," Information Resources Management Journal (IRMJ), IGI Global Scientific Publishing, vol. 34(4), pages 93-112, October.
    6. Zhao, Ge & Zhou, P. & Wen, Wen, 2021. "Feed-in tariffs, knowledge stocks and renewable energy technology innovation: The role of local government intervention," Energy Policy, Elsevier, vol. 156(C).
    7. 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).
    8. 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.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hassan, Mahmoud & Lee, Ji-Yong & Rouge, Luc & Kouzez, Marc, 2025. "The impact of green public finance and green taxes on environmental and non-environmental innovation," Research in International Business and Finance, Elsevier, vol. 76(C).
    2. Grafström, Jonas & Poudineh, Rahmat, 2023. "No evidence of counteracting policy effects on European solar power invention and diffusion," Energy Policy, Elsevier, vol. 172(C).
    3. Julio César Acosta-Prado & Joan Sebastián Rojas Rincón & Andrés Mauricio Mejía Martínez & Andrés Ricardo Riveros Tarazona, 2024. "Trends in the Literature About the Adoption of Digital Banking in Emerging Economies: A Bibliometric Analysis," JRFM, MDPI, vol. 17(12), pages 1-21, November.
    4. Che, Xiao-Jing & Zhou, P. & Chai, Kah-Hin, 2022. "Regional policy effect on photovoltaic (PV) technology innovation: Findings from 260 cities in China," Energy Policy, Elsevier, vol. 162(C).
    5. Khando Khando & M. Sirajul Islam & Shang Gao, 2022. "The Emerging Technologies of Digital Payments and Associated Challenges: A Systematic Literature Review," Future Internet, MDPI, vol. 15(1), pages 1-21, December.
    6. Muhammad Kamran Nawaz & Ahmed Eltweri & Khalid Abbas & Wa’el Al-Karaki & Farag Edghiem & Scott Foster & Munir Adali, 2025. "Public Sector Transformation in Emerging Economies: Factors Affecting Change Adoption in Pakistan," Administrative Sciences, MDPI, vol. 15(4), pages 1-27, March.
    7. Fu, Shuke & Ge, Yingchen & Hao, Yu & Peng, Jiachao & Tian, Jiali, 2024. "Energy supply chain efficiency in the digital era: Evidence from China's listed companies," Energy Economics, Elsevier, vol. 134(C).
    8. Meng, Tao & Li, Qi & He, Chang & Dong, Zheng, 2025. "Research on the configuration path of manufacturing enterprises' digital servitization transformation," International Review of Economics & Finance, Elsevier, vol. 98(C).
    9. Dai Duc Ho, 2025. "The Role of Social Capital and Shared Leadership in the Digital Transformation and Firm Performance," SAGE Open, , vol. 15(3), pages 21582440251, August.
    10. Philip Kofi Adom & Franklin Amuakwa-Mensah & Salome Amuakwa-Mensah, 2020. "Degree of financialization and energy efficiency in Sub-Saharan Africa: do institutions matter?," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 6(1), pages 1-22, December.
    11. repec:ers:journl:v:volumexxi:y:2018:i:issue4:p:435-458 is not listed on IDEAS
    12. Maseda, Amaia & Iturralde, Txomin & Arzubiaga, Unai, 2025. "Unpacking the role of entrepreneurial orientation in the digital transformation of family SMEs: The importance of leadership structure and generational involvement," Technological Forecasting and Social Change, Elsevier, vol. 219(C).
    13. Jing Wu & Yaoyi Cai, 2025. "The Paradox of AI Knowledge: A Blockchain-Based Approach to Decentralized Governance in Chinese New Media Industry," Future Internet, MDPI, vol. 17(10), pages 1-31, October.
    14. Xueyan Xie & Xiaohui Xu, 2024. "The impact of population aging on SME digital transformation: Evidence from China," PLOS ONE, Public Library of Science, vol. 19(5), pages 1-26, May.
    15. Lin, Boqiang & Xie, Yongjing, 2024. "Effect of renewable energy subsidy policy on firms’ total factor productivity: The threshold effect," Energy Policy, Elsevier, vol. 192(C).
    16. Xiaoxu Zhang & Xinyu Du, 2023. "Industry and Regional Peer Effects in Corporate Digital Transformation: The Moderating Effects of TMT Characteristics," Sustainability, MDPI, vol. 15(7), pages 1-22, March.
    17. Sun, Yuan & Mou, Saiya & Zhu, Mengyi & Jeyaraj, Anand, 2025. "Impact of digital technology affordance on organizational resilience: An ambidextrous innovation perspective using a mixed-methods approach," Journal of Business Research, Elsevier, vol. 197(C).
    18. Francisco Javier Villegas Pinuer & Joan Llonch Andreu & Pilar López Belbeze & Leslier Valenzuela-Fernández, 2021. "Waste Management. The Disconnection between Normative and SMEs Reality," Sustainability, MDPI, vol. 13(4), pages 1-20, February.
    19. Li, Dongdong & Gui, Mingxia & Ma, Rui & Feng, Yiwen, 2024. "Public data accessibility and corporate maturity mismatch: Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 86(C).
    20. Do Thi, Man & Le Huyen, Trang & Le Thi, Lan, . "The impact of policies on the digital transformation capability of Vietnamese agricultural enterprises: the moderating role of policy accessibility," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 10(4).
    21. Fernandez, Viviana, 2025. "Exit decisions of women entrepreneurs in resource-constrained environments," Research in International Business and Finance, Elsevier, vol. 76(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jadmsc:v:14:y:2024:i:11:p:299-:d:1518771. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager The email address of this maintainer does not seem to be valid anymore. Please ask MDPI Indexing Manager to update the entry or send us the correct address (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.