The impact of collaboration capability, ambidextrous leadership and digital capability on bank performance sustainability

To survive the competition in the banking industry after the fintech uprisings, banks implement various collaborations, but they often turn out to be unsuccessful. This study examines the impact of collaboration capability on bank performance sustainability, as well as how ambidextrous leadership and digital capability influence it. The methodological framework includes the development of instruments based on previous literature and quantitative procedures. The data were obtained by distributing questionnaires to 101 private commercial banks in Indonesia. The proposed model is analyzed using structural equation modelling techniques with partial least squares (SEM-PLS), using SmartPLS 4.0. This study’s findings show that collaboration capability has a direct positive effect on bank performance sustainability, digital capability has a direct positive effect on both collaboration capability and bank performance sustainability; while ambidextrous leadership has a direct positive effect on collaboration capability but not on bank performance sustainability. This study contributes to the development and validation of a new model on the influence of collaboration capability on performance sustainability along with the influence of ambidextrous leadership and digital capability in the Indonesian banking sector.