Building Organizational Resilience by developing Customers Orientation, Digital Adoption and Organizational Agility: An Empirical Study in The Indonesian Banking Industry

Abstract

As the primary economic institutions of a country, the banking industry is critical to its survival and growth. However, the banking industry is not immune to external factors such as societal changes and turbulence. Banks worldwide recently have been operating in a highly unpredictable and uncertain environment, first dealing with the COVID-19 pandemic and then dealing with the economic crises and geopolitical instability. In such high-risk situations, every organization must strive to maintain organizational resilience while minimizing the negative impact of the situation. Similarly, Indonesia's banking system consistently recovers from all of these external difficulties, indicating that Indonesian banks' organizational resilience has much to offer management academics. Given that this study has not been extensively investigated by other researchers, so the goal of this research is to determine if organizational resilience in the Indonesian banking sector is influenced by digital adoption, organizational agility, and customer orientation. This study used structural equation modeling (SEM) to investigate the connections between customer orientation, digital adoption, organizational agility, and organizational resilience by conducting a questionnaire survey with 75 Indonesian banks. The findings demonstrate that customer-oriented approach enhances organizational resilience. Additionally, organizational resilience is positively impacted by both digital adoption and organizational agility. This study will assist the Indonesian banking sector in understanding the significance of increasing organizational resilience through digital adoption, which is based on customer-oriented and organization agility as a set of strategies.