Does leadership and organizational culture influence the digitally competitive financial industry in Indonesia? An Approach Based on Structural Equation Modelling

The purpose of this study is to investigate the effect of ambidextrous leadership and organizational culture on digital competitive advantage, as mediated by readiness for change in digital transforming capabilities, utilising Contingency Theory in the context of the Indonesian banking industry.This is a quantitative research approach in which empirical investigations are performed to collect, analyze, and present data in a numerical format.The questionnaires were sent over a nine-month period, from September 1, 2021 to May 31, 2022.A sample of 107 banks was chosen for the population using a random selection technique.While the respondents are senior bank management, namely the Chief Digital Officer or Head of Information Technology Division (Chief Information Officer or Chief Technology Officer), Director and/or Commissioner or equivalent official who is thought to have adequate knowledge of the company's digital transformation strategy.According to the findings of this study, ambidextrous leadership has a favorable and significant impact on digital transformation skills.Meanwhile, organizational culture has a strong positive impact on digital transformation skills.Similarly, the variable Digital transforming capabilities has a favorable and significant impact on Digital competitive advantage.The interaction variables Readiness for change and Digital transforming capabilities, on the other hand, have no significant effect on Digital competitive advantage.The crosssectional time span of this study results in a causal association that arises between variables during the implementation of digital transformation, which varies in length.This study recommends a set of strategic operationalization measures that are necessary for the enhancement and expansion of the digital competitive advantage within the banking sector of Indonesia.The operationalization of strategy can be achieved by utilizing the 186 strategy mappings mentioned earlier while considering enhancements to several variables such as ambidexterity leadership, strategic agility, organizational culture, and digital transformation capabilities.Future research will also be able to examine whether the Ambidextrous leadership variable has adjusted indications when it comes to industries directly associated to risk management.Similarly, whether readiness for change can moderate digital transformation capabilities to digital competitive advantage in the context of other industries.