Digital Transformation and Innovation in Jordanian Commercial Banks

Digital transformation has been brought out as one of the most critical strategic initiatives by organisations that are keen on making innovation and remaining competitive in technology-driven environments. In the banking industry, the gradual adoption of digital technologies has completely transformed the service provision processes, operational procedures, and the decision-making processes of managers. This paper examines how digital transformation affects innovation in Jordanian commercial banks, focusing specifically on the three key aspects, namely, technological infrastructure, legislative and policy frameworks, and digital skill sets. A descriptive-analytical research design was adopted and the data were collected using a structured questionnaire that was offered to both the senior and middle managers of the commercial banks in Jordan. The number of valid responses was 124 and was analysed statistically, including a reliability test, Descriptive statistics, a normality test and regression analysis. The current analysis indicates that the digital transformation has a statistically significant positive impact on innovation in the environment of commercial banking in Jordan. Among the dimensions that were examined, legislative and policy frameworks were the most powerful drivers, followed by technological infrastructure and digital competencies. The data also depict average levels of adoption of digital transformation interventions and practices that accompany them, hence pointing to significant improvement opportunities. The given empirical study adds to the body of existing literature on the topic of digital transformation and innovation by providing primary data on the banking industry of a developing economy. The derived insights have practical implications for banking executives and policy-makers in the society because of the importance of enabling regulatory environments, investment in digital infrastructures, and the long-term development of the digital capabilities of employees to foster innovation.