How digitalization influences the performance of commercial banks in Vietnam? The moderating roles of servitization and strategic vision

Abstract

Digitalization has dramatically changed the nature and operation of the banking sector. Around the world, bankers are hastily developing and implementing digitalization strategies to gain a competitive edge. In the context of emerging markets, current literature reveals that when digitalization is integrated into a long-term strategy, it coincides with the process of servitization, leading to positive expectations for improvements in bank performance. To further investigate the relationship between digitalization and commercial bank performance in Vietnam, the PLS-SEM models were employed to analyze surveys gathered from members of the administrative council, board of directors, and managers at selected commercial banks in Vietnam. The findings demonstrate the moderating roles of servitization and strategic vision in fine-tuning the impact of digitalization on the bank performance. Based on the results, several recommendations and policy implications have been drawn for the Vietnamese banking sector, which can also serve as lessons for other countries.