Agile Leadership and Digital Transformation in Savings Cooperative Limited: Impact on Sustainable Performance Amidst COVID-19

Abstract

Savings Cooperative Limited in Thailand is a financial institution that operates under strict legal regulations and self-imposed limitations to mitigate potential risks arising from its business activities. During the COVID-19 pandemic, the adoption of agile leadership within the organization becomes crucial in reducing inertia and facilitating the digital transformation process, leading to sustainable financial and non-financial performance. This research aims to investigate the direct and indirect effects of agile leadership and organizational inertia on sustainable financial and non-financial performance, with digital information playing a significant role. The study comprised 100 managers or deputies from Savings Cooperative Limited in Thailand, selected through purposeful sampling to meet specific criteria. Data collection involved a questionnaire based on concepts and theories, administered via email, phone, and mail. Subsequently, the collected data underwent analysis using structural equation modelling (SEM) to yield results. The findings of this study demonstrate a positive relationship between agile leadership and digital transformation, as well as sustainable financial and non-financial performance. Furthermore, organizational inertia was found to have a negative impact on digital transformation. However, the relationships between other variables were not statistically significant. These results contribute to a better understanding of the definition of agile leadership, highlighting its inability to eliminate the influence of external factors such as legal constraints. Therefore, it is recommended that authorities responsible for enforcing laws consider providing leniency during crisis conditions, allowing Savings Cooperative Limited to employ agile leadership in practical ways. Any leaders within Savings Cooperative Limited in Thailand aiming to implement digital transformation and achieve success should prioritize the selection of agile leadership based on these findings.