Is Sustainable Performance Affected by Digital Transformation in the Main Centers of Egyptian Governmental Banks? The Mediating Role of Innovation Capabilities.

The examination of the impact of digital transformation (DT) on generating value within governmental banking institutions has captivated the attention of scholars over an extended period, particularly in a dynamic and unpredictable context. Despite the extensive exploration of DT by various governmental banks, both researchers and practitioners have encountered numerous challenges in assessing the integration of DT with SP. This study aims to assess influence of digital transformation (DT) on sustainable performance (SP) of governmental banks-main centers in Egypt, with a focus on the mediating function of innovation capabilities (IC) rooted in dynamic capability (DC) theory. The analysis of quantitative data was conducted using PLS-SEM. The sample comprised of 378 respondents from governmental banks-main centers including the National Bank of Egypt, Banque du Caire, and Banque Misr in Egypt. The results indicated that DT positively influences IC and SP. Furthermore, IC positively impacts SP. Additionally, IC serve as a partial mediator between DT and SP.