MEDIATING ROLE OF OPERATIONAL EXCELLENCE IN THE RELATIONSHIP BETWEEN TECHNOLOGY ADOPTION AND PERFORMANCE OF BANKS IN BATTICALOA REGION OF SRI LANKA

Abstract

This study investigates the impact of Technology Adoption on Banking performance, with Operational Excellence serving as a mediating variable, in the Batticaloa region. The research specifically examines five independent variables: Digital Banking Services, core Banking System upgrades, cybersecurity Measures, Artificial Intelligence & Automation, and Blockchain & Fintech Collaboration. These variables are analyzed in relation to the dependent variable, Banking Performance, and the mediating variable, Operational Excellence. Data were collected through a structured questionnaire administered to 205 bank employees in the Batticaloa region. The data analysis was conducted using descriptive statistics, correlation analysis, and simple linear regression. The findings indicate a positive relationship between Technology Adoption and Banking Performance, as well as between Technology Adoption and Operational Excellence. Atlditionally, a positive relationship was founcl between Operational Excellence and Banking Performance. The results further reveal that Operational Excellence mediates the relationship between Technology Adoption and Banking Perfonnance. All dimensions measured demonstrated a strong positive correlation with tsanking Performance. Moreover, the simple linear regression analysis confirmed that Technology Adoption has a statistically significant impact on Banking performance among bank employees in the Batticaloa region. Keywords: Digital Banking Services, Core Banking System Upgrades, Cyberseqtrity Measures, Artificial Intelligence & Automation, Blockchain & Fintech Collaboration. Banking P erformance, Operational Excellence