Digital transformation and sustainable business in commercial banks: The mediating roles of corporate governance, perceived performance, and financial efficiency

Abstract

This study aims to explore the mediating roles of corporate governance, perceived performance, and financial efficiency in the relationship between digital transformation and sustainable business among joint-stock commercial banks in Vietnam. The research employed structural equation modeling (SEM) using the Partial Least Squares (PLS-SEM) technique, based on secondary data collected from financial statements and annual reports of 10 joint-stock commercial banks between 2022 to 2024. The findings emphasize that corporate governance and financial efficiency serve as mediators in the impact of digital transformation on sustainable business in these banks. However, no evidence is found to support the mediating role of perceived performance in the relationship between digital transformation and sustainable business within this context. In addition, the study provides empirical evidence for commercial banks in Vietnam regarding the impact of digital transformation on business sustainability, offering practical implications for enhancing competitiveness among commercial banks in the era of digital transformation.