IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i11p8783-d1158857.html
   My bibliography  Save this article

COVID-19, Digital Transformation of Banks, and Operational Capabilities of Commercial Banks

Author

Listed:
  • Yongjie Zhu

    (College of Business, Gachon University, Seongnam 13120, Republic of Korea)

  • Shanyue Jin

    (College of Business, Gachon University, Seongnam 13120, Republic of Korea)

Abstract

The development of financial technology has promoted the innovation and digital transformation of commercial banks. Through digital transformation, commercial banks can improve bank efficiency and operational capabilities. Through empirical analysis, this study explored the relationship between digital bank transformation and commercial bank operating capabilities and how COVID-19, bank categories, and enterprise life cycles affect the relationship between digital bank transformation and commercial bank operating capabilities. This study selected data from China’s commercial banks from 2011 to 2021 and used the regression method of fixed effects to conduct an empirical analysis. The research results show that the digital transformation of banks has improved the operational capabilities of commercial banks. Further analysis showed that the emergence of COVID-19 has negatively affected their relationship. At the same time, compared with rural commercial banks and commercial banks in the recession and phase-out periods, non-rural commercial banks and commercial banks in the growth and maturity stages play a more vital moderating role in the impact of the digital transformation of banks on the financial performance of commercial banks. The main research object of this study is Chinese commercial banks, and this study examines the results of banks’ digital transformation and enriches the research on digital transformation. At the same time, this study is helpful to investors who like investment banks and has good practical significance.

Suggested Citation

  • Yongjie Zhu & Shanyue Jin, 2023. "COVID-19, Digital Transformation of Banks, and Operational Capabilities of Commercial Banks," Sustainability, MDPI, vol. 15(11), pages 1-17, May.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:11:p:8783-:d:1158857
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/11/8783/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/11/8783/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Lei Guo & Luying Xu, 2021. "The Effects of Digital Transformation on Firm Performance: Evidence from China’s Manufacturing Sector," Sustainability, MDPI, vol. 13(22), pages 1-18, November.
    2. Song, Hua & Yang, Xuan & Yu, Kangkang, 2020. "How do supply chain network and SMEs’ operational capabilities enhance working capital financing? An integrative signaling view," International Journal of Production Economics, Elsevier, vol. 220(C).
    3. Efraim Benmelech & Nitzan Tzur-Ilan, 2020. "The Determinants of Fiscal and Monetary Policies During the Covid-19 Crisis," NBER Working Papers 27461, National Bureau of Economic Research, Inc.
    4. Andrea Venturelli & Simona Cosma & Rossella Leopizzi, 2018. "Stakeholder Engagement: An Evaluation of European Banks," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(4), pages 690-703, July.
    5. Su, Chi-Wei & Yuan, Xi & Umar, Muhammad & Lobonţ, Oana-Ramona, 2022. "Does technological innovation bring destruction or creation to the labor market?," Technology in Society, Elsevier, vol. 68(C).
    6. Zhou, Zhongsheng & Li, Zhuo, 2023. "Corporate digital transformation and trade credit financing," Journal of Business Research, Elsevier, vol. 160(C).
    7. Amira Khattak & Zahid Yousaf, 2021. "Digital Social Responsibility towards Corporate Social Responsibility and Strategic Performance of Hi-Tech SMEs: Customer Engagement as a Mediator," Sustainability, MDPI, vol. 14(1), pages 1-16, December.
    8. Nafis Alam & Lokesh Gupta & Abdolhossein Zameni, 2019. "Fintech and Islamic Finance," Springer Books, Springer, number 978-3-030-24666-2, March.
    9. Xiangyu Tian & Yuanxi Zhang & Guohua Qu, 2022. "The Impact of Digital Economy on the Efficiency of Green Financial Investment in China’s Provinces," IJERPH, MDPI, vol. 19(14), pages 1-18, July.
    10. Guoxiang Li & Rong Zhang & Suling Feng & Yuqing Wang, 2022. "Digital finance and sustainable development: Evidence from environmental inequality in China," Business Strategy and the Environment, Wiley Blackwell, vol. 31(7), pages 3574-3594, November.
    11. Yuying Gao & Shanyue Jin, 2022. "Corporate Nature, Financial Technology, and Corporate Innovation in China," Sustainability, MDPI, vol. 14(12), pages 1-22, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. John K. Thuranira & Mukaria H. Kimathi & Dennis K. Murithi, 2024. "Digital Banking Channels, Financial Inclusion and Commercial Bank Sustainability in Kenya," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(15), pages 164-180, November.
    2. Zeguo Qiu & Yunhao Chen & Hao Han & Tianyu Wang, 2024. "Research on Digital Technology to Promote Low-Carbon Transformation of Manufacturing Industries Under the Perspective of Green Credit: An Evolutionary Game Theory Approach," Sustainability, MDPI, vol. 16(24), pages 1-27, December.
    3. Hui Zhou & Lin Xu, 2023. "Bank Digital Transformation and Enterprise Innovation—Evidence from China," Sustainability, MDPI, vol. 15(22), pages 1-25, November.

    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. Li, Yuanyuan, 2025. "Digital financial inclusion and intangible cultural heritage," Finance Research Letters, Elsevier, vol. 77(C).
    2. Chen, Meian & Zhao, Ke & Jin, Wei, 2024. "Corporate digital transformation and tax avoidance: evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 85(C).
    3. Jiang, Hui & Peng, Cheng & Ren, Daling, 2024. "Supply-chain finance digitalization and corporate financial fraud: Evidence from China," Economic Modelling, Elsevier, vol. 139(C).
    4. Zhu Yongjie, 2023. "Enterprise life cycle, financial technology and digital transformation of banks—Evidence from China," Australian Economic Papers, Wiley Blackwell, vol. 62(3), pages 486-500, September.
    5. Juncal Cunado & David Gabauer & Rangan Gupta, 2024. "Realized volatility spillovers between energy and metal markets: a time-varying connectedness approach," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 10(1), pages 1-17, December.
    6. Ran, Qiying & Yang, Xiaodong & Yan, Hongchuan & Xu, Yang & Cao, Jianhong, 2023. "Natural resource consumption and industrial green transformation: Does the digital economy matter?," Resources Policy, Elsevier, vol. 81(C).
    7. Feyen, Erik & Alonso Gispert, Tatiana & Kliatskova, Tatsiana & Mare, Davide S., 2021. "Financial Sector Policy Response to COVID-19 in Emerging Markets and Developing Economies," Journal of Banking & Finance, Elsevier, vol. 133(C).
    8. repec:cdl:ucscec:qt9cc4c34z is not listed on IDEAS
    9. Jaime-Andres Correa-Garcia & Maria-Antonia Garcia-Benau & Emma Garcia-Meca, 2018. "CSR Communication Strategies of Colombian Business Groups: An Analysis of Corporate Reports," Sustainability, MDPI, vol. 10(5), pages 1-19, May.
    10. 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).
    11. Andrieș, Alin Marius & Ongena, Steven & Sprincean, Nicu, 2021. "The COVID-19 Pandemic and Sovereign Bond Risk," The North American Journal of Economics and Finance, Elsevier, vol. 58(C).
    12. Joseph Mawejje & Nicholas M. Odhiambo, 2022. "Macroeconomic determinants of fiscal policy in East Africa: a panel causality analysis," Journal of Economics, Finance and Administrative Science, Emerald Group Publishing Limited, vol. 27(53), pages 105-123, February.
    13. Wu, Shilei & Zhou, Fu-You & Si, Deng-Kui & Hao, Jiawei, 2025. "Does ESG rating policy reduce corporate risk-taking? Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 90(C).
    14. Central Bank of Malaysia, 2022. "Monetary and fiscal policy interactions in the wake of the pandemic," BIS Papers chapters, in: Bank for International Settlements (ed.), The monetary-fiscal policy nexus in the wake of the pandemic, volume 122, pages 187-194, Bank for International Settlements.
    15. Licheng Yang & Shijie Song & Chunlin Liu, 2024. "Green signals: The impact of environmental protection support policies on firms' green innovation," Business Strategy and the Environment, Wiley Blackwell, vol. 33(4), pages 3258-3278, May.
    16. Changlin Ji & Yuwei Feng, 2025. "RETRACTED ARTICLE: Evaluating the Innovation-Boosting Potential of Low-Carbon Pilot Policies: A Multi-Subject Co-Governance Perspective," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(2), pages 6033-6072, June.
    17. Nitidetch Koohathongsumrit & Pongchanun Luangpaiboon, 2022. "An integrated FAHP–ZODP approach for strategic marketing information system project selection," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(6), pages 1792-1809, September.
    18. Beier, Grischa & Matthess, Marcel & Shuttleworth, Luke & Guan, Ting & de Oliveira Pereira Grudzien, David Iubel & Xue, Bing & Pinheiro de Lima, Edson & Chen, Ling, 2022. "Implications of Industry 4.0 on industrial employment: A comparative survey from Brazilian, Chinese, and German practitioners," Technology in Society, Elsevier, vol. 70(C).
    19. Wang, Mansi & Yu, Xinxin & Hong, Xinyi & Yang, Xiaotao, 2025. "Can digital finance promote green innovation collaboration in enterprises?," Global Finance Journal, Elsevier, vol. 65(C).
    20. Masanori ORIHARA & Takafumi SUZUKI, 2021. "Windfalls? Costs and Benefits of Investment Tax Incentives due to Financial Constraints," Discussion papers 21087, Research Institute of Economy, Trade and Industry (RIETI).
    21. Su, Chi-Wei & Yuan, Xi & Umar, Muhammad & Chang, Tsangyao, 2022. "Dynamic price linkage of energies in transformation: Evidence from quantile connectedness," Resources Policy, Elsevier, vol. 78(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:jsusta:v:15:y:2023:i:11:p:8783-:d:1158857. 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 (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.