Investigating the Impact of Digital Business Intensity and Transformation on Organizational Ambidexterity and Sustainable Performance in the Indonesian Insurance Industry

Abstract

This study investigates the impact of digital business intensity and digital business transformation on organizational ambidexterity and sustaining organizational performance in the Indonesian insurance industry. Using a survey-based quantitative research approach, data were collected from CEOs, CAOs, and CTOs of 40 national insurance firms and joint ventures in Indonesia. The study employed a structural equation modeling technique and the SmartPLS analysis tool for data testing and analysis. The findings reveal significant positive relationships between digital business intensity, digital business transformation, organizational ambidexterity, and sustaining organizational performance. Moreover, organizational ambidexterity was found to mediate the effects of digital business intensity and digital business transformation on sustaining organizational performance. The study contributes to the literature on digital transformation and organizational ambidexterity by providing empirical evidence on their interrelationships and impact on organizational performance in the insurance industry. The findings also have practical implications for insurance companies seeking to leverage digital technologies to achieve ambidexterity and sustain their performance in a dynamic business environment.