The impact of adopting the digital strategy on the competitive advantage: A moderating role of employee satisfaction in the Jordanian banking sector

Abstract

Digital strategy is one of the methods adopted by organizations to use digital technology to achieve business goals, improve performance, and enhance competitive advantage by significantly improving customer experience. Success in achieving competitive advantage requires implementing the digital strategy effectively. The study aims to determine the impact of adopting the digital strategy on the possession of competitive advantage with the moderating role of employee satisfaction in the Jordanian banking sector. Data were collected from 397 employees working in twelve Jordanian banks. The SPSS software was used to analyze the data and test the hypotheses. The results show that adopting digital strategy dimensions explains 55.6% of the variance of competitive advantage dimensions. Data, quality, and flexibility explain 45.8%, 44.8%, and 47.3% of the variance of competitive advantage, respectively. Also, the results show a positive impact of digital strategy dimensions (technologies, data, human resources, and operations) on competitive advantage dimensions (quality, flexibility, and cost). Moreover, the results also show that employee satisfaction moderates and enhances the relationship between adopting the digital strategy and possessing competitive advantages. The study recommended that decision-makers in commercial banks pay attention to applying digital technology because it enhances the speed and quality of providing services to customers.

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