THE ROLE OF AGILE LEADERSHIP AND ORGANIZATIONAL DIGITAL CULTURE TO IMPROVE DIGITAL TRANSFORMATION IN BANKING SECTOR IN KILINOCHCHI DISTRICT

Abstract

Digital transformation in the banking sector has become a necessity in the Industrial digital era. The Sri Lankan economy will be more established if banks can take the benefit of information technology advancement in their business processes. This research aims to test the role of agile leadership and organizational digital culture in improving digital transformation in the banking sector in Kilinochchi District. ln this study, simple random sampling wad used to select the required number of respondents from selected banks for the sample. For this study purpose data were collected from 137 managerial and executive level employees who are working in the selected banks in Kilinochchi District. This quantitative study employed with a structured questionnaire to collect data on workforce transformation, dynamic capability, organizational digital culture, agile leadership and digital transformation. The collected data was analysed using descriptive and inferential statistics to identify the role of agile leadership and organizational digital culture in improving digital transformation. The key findings of this study revealed that based on the first objective workforce transformation, dynamic capability, organizational digital culture, digital transformation and agile leadership variables have a high level of contribution. The second objective has been found that there is a high positive relationship between (1) workforce transformation and organizational digital culture (2) dynamic capability and organizational digital culture and (3) organizational digital culture and digital transformation. Finally, the combined effect of agile leadership and organizational digital culture significantly predicts digital transformation, rather than each variable alone which is supporting the third objective of this study. Therefore, the findings of this research make a significant contribution to the existing literature by addressing the role of agile leadership and organizational digital culture in digital transformation within the banking sector. While previous studies have explored these variables in isolation, this research uniquely demonstrates that their interaction is a critical predictor of successful digital transformation. Overall, the study will help to enhance my understanding of the role of agile leadership and organizational digital culture in improving digital transformation in the banking sector in Kilinochchi district of Sri Lanka. The results of this study will have important implications for the development of effective leadership practices in the banking sector in the Kilinochchi district and potentially in other regions as well.