The impact of digital adoption and adaptive leadership on organisational resilience: a case study of Indonesian banks
by Basaria Martha Juliana; Harjanto Prabowo; Mohammad Hamsal; Firdaus Alamsjah
International Journal of Business Forecasting and Marketing Intelligence (IJBFMI), Vol. 9, No. 4, 2024

Abstract: The Indonesian banking industry is susceptible to challenges when confronted with industry-related changes, particularly technological and consumer preference shifts. Consequently, it is imperative for Indonesian banks to learn how to reconfigure, adapt, and strategise their dynamic capabilities in order to overcome external environmental turbulences and attain organisational resilience. Taking into account the close relationship between modern society and technology, leaders must also consider how banks can navigate the digital domain, including the use of digital adoption. This study seeks to examine the impact of digital adoption and adaptive leadership on organisational resilience in the Indonesian banking industry, as moderated by environmental turbulence. The methodology is a quantitative cross-sectional method with SEM PLS applied to a sample of 75 respondents representing the four tier 1 capital-based classifications of Indonesian banks. The results indicate that digital adoption and adaptive leadership have a positive and statistically significant effect on organisational resilience. However, it was discovered that environmental turbulence has no effect on the relationship between digital adoption and adaptive leadership in the Indonesian banking sector's overall organisational resilience. This result contradicts previous research that examined the moderating effect of environmental turbulence.

Online publication date: Tue, 01-Oct-2024

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