The purpose of this study is to investigate the impact of digital orientation, digital capability and absorptive capacity on digital transformation. This study further examines how digital transformation, in turn, influences financial innovation and firm resilience in the context of Jordanian financial market.
Data were collected through a questionnaire survey administered to financial firms in Jordan. A total of 162 valid responses were analyzed using partial least squares structural equation modeling to test and validate the proposed research hypotheses.
The results of this study reveal that digital orientation and digital capability have a significant positive impact on digital transformation, whereas absorptive capacity does not exhibit a statistically significant effect. The findings of this study further confirm that digital transformation has a positive and significant influence on both financial innovation and firm resilience. Finally, this study validates that financial innovation positively impacts financial firms’ resilience.
This is cross-sectional research and data were collected at a single time frame from financial firms in Jordan. Hence, the findings may not be fully applicable to other contexts. Furthermore, cross-sectional data restricts our ability to capture the dynamic and evolving nature of digital transformation, as it is a continuous process.
The findings encourage financial firms to embrace digital transformation by investing in advanced technologies and strengthening their digital capabilities to foster innovation and resilience. Developing internal capacity through employee training, digital literacy and strategic FinTech partnerships is vital. When aligned with objectives such as regulatory compliance, customer trust and sustainable growth, these initiatives can accelerate innovation while enhancing firms’ ability to withstand market disruptions.
To the best of the authors’ knowledge, this study is among the first empirical investigations to examine how digital transformation–driven financial innovation enhances the resilience of financial firms in the context of a developing economy such as Jordan.
