Navigating digital transformation in banking: unraveling the nexus of capabilities, technologies, and regulatory realities

Abstract

This thesis explores the pivotal role of capabilities and technologies in the digital transformation of the banking sector, with a focus on identifying optimal strategies within diverse regulatory environments. Utilizing a Delphi study approach, it offers theoretical insights into the contextual impacts on performance, comparing Canada and Iran. Integrating Dynamic Capability theory at the micro-level and the Systems of Innovation approach at the macro-level, the research employs a variety of methodologies including systematic literature review, Delphi method, SEM, and the rarely used fsQCA. By delving into regulatory environments and key capabilities, while recognizing capital as a paramount resource, the study enriches understanding of digital transformation dynamics. Notably, it advances theoretical foundations by integrating insights from Dynamic Capability Theory and System of Innovation theory, emphasizing the importance of aligning strategic initiatives with regulatory frameworks. Through comparative analysis between Canada and Iran, nuanced differences in regulatory impacts on crucial capabilities are highlighted. Additionally, the study introduces innovative methodologies like fuzzy set qualitative comparative analysis (fsQCA), expanding the methodological repertoire in management science. Furthermore, practical implications guide practitioners, policymakers, and industry stakeholders in aligning strategies with regulatory landscapes.