Mediating role to banking performance for adopting digital bank using a technology organizational environment model

Chanchal Molla (), Mohammad Rakibul Islam Bhuiyan (), Md. Tariqul Islam () and Al- Amin ()
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Chanchal Molla: Jashore University of Science and Technology, Department of Management, Faculty of Business Studies
Mohammad Rakibul Islam Bhuiyan: Begum Rokeya University, Department of Management Information Systems
Md. Tariqul Islam: Patuakhali Science and Technology University, Department of Management Studies
Al- Amin: Anti-Corruption Commission (ACC)

Digital Finance, 2026, vol. 8, issue 1, No 4, 29 pages

Abstract: Abstract This study intends to fill this gap by uncovering the factors conditioning the adoption of digital banks within the banking industry, embracing the digital bank led by the Technology Organization Environment (TOE) framework that links several conditioning variables in the banking industry, and how the digital bank is going to drastically change the landscape of Information and Communication Technology (ICT) resource utilization, maximize banking transactions, and bring a competitive advantage to banking performance. This study conducted a survey to gather the perspectives of employees of Bangladesh’s bank regarding the mentioned topics. It also includes conducting pretests and pilot tests, addressing common method bias, using structural equation modelling, and performing analysis of variance tests to examine the research hypotheses related to the links among the factors being studied. Technological factors (RA and IRA, TBP), environmental factors (CP, LF, and GS), and organizational factors (TMS, TO, and EO) have 55.10% positive effects among respondents to the adaptation of digital banks in Bangladesh, which also leads to a 29.70% increase in banking or industry performance. The primary determinants of digital bank adoption are Relative Advantage (RA), technology-based products (TBP), Top Management Support (TMS), Competitive Pressure (CP), and legal frameworks (LF). There is a strong correlation between these criteria and digital banking adoption. ICT Resource Availability (IRA), Entrepreneurial Orientation (EO), Technology Orientation (TO), and Government Support (GS) have minimal impact on the adoption of digital banking. Banking companies need technological expertise in AI, machine learning, blockchain, and ICT to adopt digital banking for sustainable performance. The SMART economy, branchless services, and small loan facilities will improve the banking industry’s performance. It has been observed that 41.0% of the impact is crystallized in this study as being influenced by technological, organizational, and environmental factors in the final adoption of digital banks, leading to bank industry performance (BIP).

Keywords: Digital bank; Bank performance; Technology organizational environment framework; Mediating role; SMART economy (search for similar items in EconPapers)
JEL-codes: D83 G21 L86 M15 O32 O33 (search for similar items in EconPapers)
Date: 2026
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DOI: 10.1007/s42521-025-00168-x

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