Cultural influences and work engagement in driving digital transformation performance: evidence from Islamic banking in Kuwait

Purpose This study examines the relationship between cultural values and digital transformation performance (DTP) in Islamic banking while investigates the moderating role of work engagement. Design/methodology/approach Using institutional theory and work engagement theory, survey data were collected from 550 employees across five Islamic banks in Kuwait and analyzed using PLS-SEM. Findings Power distance, uncertainty avoidance, collectivism, and long-term orientation positively influence DTP. Indulgence has a negative effect, while masculinity is insignificant. Work engagement strengthens the effects of uncertainty avoidance and long-term orientation and reduces the negative impact of indulgence, but does not affect power distance, collectivism or masculinity. Practical implications Managers should use clear structures, formal procedures, teamwork, and long-term planning to support DT. Strengthening employee engagement through training, communication and participation is critical for improving adaptability and sustaining transformation. Originality/value This study advances work engagement theory by showing that engagement plays a conditional role, strengthening adaptive and long-term cultural effects while reducing weaker behavioral discipline. It highlights that institutional alignment alone is insufficient without active employee involvement.