The Influence of Learning Culture and Digital Transformation on Business Performance in Rural Bank Industry: Mediating Role of Absorptive Capacity
DOI:
https://doi.org/10.70716/ecoma.v4i3.835Keywords:
learning culture, absorptive capacity, business performance, BPR, digital transformationAbstract
As a part of the financial industry, Bank Perekonomian Rakyat (BPR) needs to navigate competition that is derived from technology enhancement using its internal capability and resources. This study aims to analyze the business performance of BPR’s industries, which is directly influenced by learning culture and digital transformation and also by absorptive capacity as a mediator. This quantitative study uses a purposive sampling method by delivering questionnaire to 230 respondents with the criteria of executive officers and BPRs located in Kegiatan Usaha 1 area. This study uses hypothesis testing using Structural Equation Modeling (SEM)—SmartPLS 4.0. This study found that for direct effects, there is no positive impact from learning culture on business performance, but there is a positive influence on absorptive capacity; there is no positive influence of digital transformation on business performance, but there is a positive influence of digital transformation on absorptive capacity; and there is a positive influence of absorptive capacity on business performance. Meanwhile, for indirect effects, this study concludes that absorptive capacity mediates the positive influence of learning culture and digital transformation on business performance. The originality of this study reveal from the elaboration of the research model which contributes to existing literature about digital transformation measurements of technological advancements application especially in BPR industry. Given the result, this study provides practical managerial implications and practices for rural banks to improve absorptive capacity as it mediates learning culture and digital transformation.
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