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Abstract

Purpose: This study explores the dynamics of digital transformation and technological innovation in Indonesia’s banking sector by examining how innovation is created, adopted, and interpreted within banking organizations.


Research Method: A qualitative Grounded Theory approach was employed. Data were collected through in-depth interviews, non-participant observations, and document analysis at selected state-owned and Islamic banks in Makassar, Indonesia. Data were analyzed using open, axial, and selective coding, supported by constant comparison and theoretical memoing.


Results and Discussion: The findings show that sustainable digital transformation is shaped by the interaction of four main elements: leadership vision, organizational culture, technological integration, and human adaptability. These elements reinforce one another in directing strategy, fostering an innovation-oriented environment, and enabling employees to adjust to digital change. From these patterns, the study formulates the substantive theory of Adaptive Organizational Synergy.


Implications: This study enriches innovation and digital transformation literature by emphasizing organizational and interpretive dynamics. In practice, it provides guidance to policymakers and banking leaders on designing human-centered digital transformation strategies. Future studies are recommended to test this theory across regions, banking models, and wider digital ecosystems.

Keywords

digital transformation banking innovation organizational culture leadership adaptive synergy

Article Details

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This work is licensed under a Creative Commons Attribution 4.0 International License.

How to Cite
Wahab, A., Lawalata, I. L. D., Fattah, F., & Megawaty, M. (2026). Digital Transformation and Technological Innovation in the National Banking Sector: A Grounded Theory Approach. Advances in Management & Financial Reporting, 4(2), 343–354. https://doi.org/10.60079/amfr.v4i2.643
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