Framework for the Adoption of Digital Transformation—A Study on the Banking and Financial Services Industry in India

Adopting digital technology in the financial ecosystem requires the Digital Transformation (DX) of the organization at various levels, i.e., from processes to employee involvement. This research is aimed at developing a framework for the successful adoption of DX and adopted a two-factor model for testing thirteen proposed hypotheses—12 for the first-order model and one for the second-order model with ADANCO and JMP software. The questionnaire for data collection was administered to 473 participants, including top-level executives of varied financial services providers, such as public sector banks, private sector banks, non-banking finance companies, urban cooperative banks, and banking regulators. The study empirically states that the successful adoption of DX depends on organizational readiness and employees’ readiness. The research recommends developing employee readiness through the inherent technological characteristics of improved employee productivity, performance visibility, scope for skill development, business, and job continuity while the organization undergoes digital transformation with an approach for strategic change. The study finds that the organizational readiness for transformative digital technological implications rest on leadership, governance, employee support, cost effectiveness and a positive approach. These findings contribute to the body of literature that adopts a socio-technical view of the digital transformation organization journeys.