Examining the Impact of Digital Transformation on the Reconfiguration of Organizational Identity in Banks with Emphasis on Organizational Agility and Organizational Learning

Mahdi Sharaf Tadavani; Yaghoub  Ansari

Authors

Mahdi Sharaf Tadavani Ph.D. student, Department of Management, Yas.C., Islamic Azad University, Yasuj, Iran https://orcid.org/0009-0004-4719-8357
Yaghoub Ansari Department of Management, Yas.C., Islamic Azad University, Yasuj, Iran Author https://orcid.org/0009-0008-8813-8325

Keywords:

Digital transformation, Organizational agility, Organizational learning, Reconfiguration of organizational identity, Banks

Abstract

In recent years, digital transformation has become one of the most critical drivers of change in organizational structures, processes, and managerial paradigms, particularly in the banking industry. In order to maintain competitive advantage in an environment rapidly influenced by digital technologies, electronic banking services, and fintech companies, banks are compelled to redefine and reconstruct their organizational identity in alignment with emerging conditions. The present study aims to develop and test a model explaining the impact of digital transformation on the reconfiguration of organizational identity, with an emphasis on organizational agility and organizational learning in banks. In terms of purpose, this study is applied, and in terms of methodology, it follows a descriptive-survey design. The statistical population consists of bank employees, from which a sample of 400 individuals was selected. Data were collected using a questionnaire comprising 25 items based on a five-point Likert scale. Data analysis was conducted using partial least squares structural equation modeling (PLS-SEM). The results indicated that digital transformation has a positive and significant effect on both organizational agility and organizational learning, and these two variables, in turn, significantly influence the reconfiguration of organizational identity. The findings of this study can assist bank managers in designing digital transformation strategies, developing organizational capabilities, and strengthening organizational identity in accordance with the digital environment.

References

[1] G. Vial, "Understanding digital transformation: A review and research agenda," Journal of Strategic Information Systems, vol. 30, no. 2, p. 101635, 2021.

[2] P. C. Verhoef et al., "Digital transformation: A multidisciplinary reflection," Journal of Business Research, vol. 122, pp. 889-901, 2021, doi: 10.1016/j.jbusres.2019.09.022.

[3] D. Plekhanov, H. Franke, and T. Netland, "Digital transformation: A review and research agenda," European Management Journal, vol. 40, no. 4, pp. 597-614, 2022.

[4] S. Kraus, S. Durst, J. J. Ferreira, P. Veiga, N. Kailer, and A. Weinmann, "Digital transformation in business and management research," Review of Managerial Science, vol. 16, pp. 1-30, 2022, doi: 10.1016/j.ijinfomgt.2021.102466.

[5] G. Santoro, D. Vrontis, A. Thrassou, and L. Dezi, "The Internet of Things and digital transformation in business models," Technological Forecasting and Social Change, vol. 170, p. 120879, 2021.

[6] G. Westerman, D. Bonnet, and A. McAfee, "Leading digital transformation," MIT Sloan Management Review, vol. 62, no. 4, pp. 1-12, 2021.

[7] J. Dąbrowska et al., "Digital transformation, for better or worse: A critical multi level research agenda," R&D Management, vol. 52, no. 5, pp. 930-954, 2022, doi: 10.1111/radm.12531.

[8] S. Bresciani, A. Ferraris, and M. Del Giudice, "The management of organizational identity in the digital era," Journal of Business Research, vol. 129, pp. 122-131, 2021.

[9] F. Hein-Pensel, "Organizational Identity Meets Digital Transformation: Understanding the Interplay Between Transformation and Identity in Industry 5.0," Journal of Organizational Change Management, vol. 39, no. 8, pp. 1-21, 2025, doi: 10.1108/JOCM-04-2025-0352.

[10] L. Wessel, A. Baiyere, R. Ologeanu-Taddei, J. Cha, and T. Jensen, "Unpacking the difference between digital transformation and IT enabled organizational transformation," Journal of the Association for Information Systems, vol. 22, no. 1, pp. 102-129, 2021, doi: 10.17705/1jais.00655.

[11] C. A. O'Reilly and M. L. Tushman, "Organizational ambidexterity in the digital age," California Management Review, vol. 63, no. 4, pp. 5-25, 2021, doi: 10.1525/cmr.2011.53.4.5.

[12] X. Zhang, H. Chen, and W. Sun, "Organizational agility and firm performance," Journal of Business Research, vol. 145, pp. 564-576, 2022.

[13] M. Xu, Y. Zhang, H. Sun, Y. Tang, and J. Li, "How Digital Transformation Enhances Corporate Innovation Performance: The Mediating Roles of Big Data Capabilities and Organizational Agility," Heliyon, 2024, doi: 10.1016/j.heliyon.2024.e34905.

[14] K. S. R. Warner and M. Wäger, "Building dynamic capabilities for digital transformation," Long Range Planning, vol. 54, no. 5, pp. 102-124, 2021.

[15] M. J. Sousa and Á. Rocha, "Digital learning and organizational performance," Journal of Business Research, vol. 123, pp. 638-647, 2021.

[16] A. A. M. Alrifae, "The Impact of Digital Human Resource Management on Employee Innovation Behavior: The Mediating Role of Organizational Learning in the ICT Sector in the Middle East," Problems and Perspectives in Management, vol. 23, no. 4, pp. 100-111, 2025, doi: 10.21511/ppm.23(4).2025.08.

[17] A.-M. Järvenpää, J. Jussila, L. Kunttu, and I. Kunttu, "Organizational Learning Practices to Develop Digitalization Capabilities in Circular Economy SMEs," Circular Economy, 2025, doi: 10.55845/ulpa5543.

[18] A. Qaiser, S. A. Siddiqui, M. Baig, S. K. H. Sherazi, and A. Faraz, "AI Literacy and Workforce Performance: The Mediating Role of Digital Confidence and the Moderating Role of Organizational Learning Culture," Aijss, vol. 4, no. 3, pp. 4489-4502, 2025, doi: 10.63056/acad.004.03.0716.

[19] B. K. AlNuaimi, S. K. Singh, S. Ren, P. Budhwar, and D. Vorobyev, "Mastering digital transformation: The nexus between leadership, agility, and organizational performance," Technological Forecasting and Social Change, vol. 178, p. 121603, 2022, doi: 10.1016/j.jbusres.2022.03.038.

[20] H. Rafiei Taghanaki, "Investigating the Relationship Between Digital Transformation Leadership, Organizational Learning, and Employee Job Engagement (Case Study)," Naghsh-e Jahan Institute of Higher Education - Isfahan, 2023.

[21] R. Renalwin, "The Influence of Learning Organizational Culture, Employee Engagement, Digital Transformation, and Esg on Sustainable Competitive Advantage: The Role of Transformational Leadership at Abc University, Indonesia," International Journal of Social Science Humanity & Management Research, vol. 04, no. 03, 2025, doi: 10.58806/ijsshmr.2025.v4i3n08.

[22] J. D. J. Reyes-Sánchez, "Gen Alpha and Continuous Learning to Strengthen Organizational Culture in Digitally Converged Corporate Environments," pp. 205-236, 2025, doi: 10.4018/979-8-3373-3987-0.ch008.

[23] W. Shao, "The Role of Digital Transformation in Enhancing Organizational Agility and Competitive Advantages: A Strategic Perspective," Advances in Economics Management and Political Sciences, vol. 154, no. 1, pp. 115-120, 2025, doi: 10.54254/2754-1169/2024.19552.

[24] E. Tenggono, B. W. Soetjipto, and L. Sudhartio, "Dynamic Managerial Capabilities In action: Advancing Strategic Agility and Digital Readiness in Healthcare Organizations," Journal of Organizational Change Management, 2025, doi: 10.1108/jocm-12-2024-0772.

[25] M. Rezaei Shahsavari, M. H. Maleki, and M. Soltani, "Designing a Model for the Agility of the Organizational Structure of the Ministry of Industry, Mine, and Trade of the Islamic Republic of Iran," Management, Education, and Development in the Digital Age, vol. 1, no. 3, pp. 260-274, 2024, doi: 10.61838/medda.1.3.16.