The Impact of Digital Transformation on Management Practices: An Empirical Study of the Banking and Financial Sector

Abstract

The phenomenon of digital transformation has profoundly reshaped the management practices within the banking and financial sector, redefining strategies, workflows, and leadership paradigms. This empirical research aims to examine the impact of digital transformation on management practices, emphasizing the mediating role of organizational agility and the moderating influence of technological readiness. Using a positivist research philosophy, the study employs a quantitative survey approach, collecting data from 400 managerial and operational employees across selected banking institutions in southern Pakistan. The data were analyzed through correlation, regression, and mediation procedures to evaluate the hypothesized relationships among digital transformation, management practices, organizational agility, and technological readiness. Findings revealed a significant and positive association between digital transformation and management practices (r = 0.642, p < 0.01). The results also confirmed that organizational agility partially mediates this relationship, indicating that banks with greater agility are more capable of converting digital initiatives into effective managerial outcomes. Moreover, technological readiness strengthened this linkage, suggesting that institutions equipped with robust digital infrastructures realize higher management efficiency and adaptive capacity. This study contributes to the growing discourse on the digitalization of management systems, offering empirical insights for banking institutions in developing economies to align strategic digital initiatives with management reforms. The findings underscore the importance of digital literacy, agile leadership, and adaptive organizational culture in sustaining performance and competitiveness amid technological disruption.

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