THE MEDIATING ROLE OF LEARNING CAPABILITY ON DIGITAL TRANSFORMATION CAPABILITY AND ORGANISATIONAL AGILITY OF DEPOSIT MONEY BANKS IN NIGERIA

Abstract

The increasing pressure of digital disruption has compelled Deposit Money Banks (DMBs) to develop capabilities that enable them to remain flexible, responsive, and competitive in a rapidly changing business environment. This study examined the relationship between digital transformation capability and organisational agility, with organisational learning capability as a mediating mechanism among selected deposit money banks in Nigeria. The study adopted a quantitative research approach using a cross-sectional survey design. The population comprised approximately 480 employees from five selected deposit money banks in Asaba, Delta State, Nigeria, from which a sample size of 214 respondents was determined using the Krejcie and Morgan sample size determination table. Data collected from 184 valid responses were analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM). The findings revealed that digital transformation capability had no significant direct effect on organisational agility. However, digital transformation capability significantly enhanced organisational learning capability, while organisational learning capability significantly improved organisational agility. Furthermore, organisational learning capability significantly mediated the relationship between digital transformation capability and organisational agility. The study recommends that banks should combine digital investments with continuous learning initiatives, knowledge- sharing practices, and adaptive organisational processes to achieve sustainable agility.