Examining the Impact of Customer Orientation and Digital Adoption on Organizational Resilience in Indonesia’s Banking Sector

Abstract

In times of rapid and unpredictable changes in the environment, having customer-oriented and digitally adopted internal capabilities is essential for maintaining company performance. It is important for the banking industry in Indonesia to recognize the significance of aligning with customer needs and implementing digital adoption in order to increase organizational resilience. However, research on organizational resilience in the banking industry in Indonesia has been limited. To address this, a study was conducted using a quantitative approach to investigate organizational resilience in the banking sector. Surveys were conducted with 75 bank respondents from commercial, regional, Islamic, and digital banks. The results showed that customer orientation and digital adoption had a statistically significant positive effect on organizational resilience, improving it by 29% and 25%, respectively. Although environmental turbulence did not significantly moderate digital adoption's impact, enhancing strategic capabilities like customer orientation and digitalization can bolster resilience for banks in Indonesia's dynamic environment. This research contributes to the limited discussion on organizational resilience in the context of Indonesian banking.