THE IMPACT OF DIGITAL TRANSFORMATION ON EMPLOYEE ENGAGEMENT: THE MODERATING ROLE OF PERCEIVED ORGANIZATIONAL SUPPORT AMONG LICENSED COMMERCIAL BANK STAFF IN JAFFNA DISTRICT

Abstract

Digital transformation is a critical driver of change in the modern business landscape, particularly within the financial sector, where it significantly impacts operational processes and employee roles. The Sri Lankan banking sector has actively embraced digital transformation, with major players like Commercial Bank leading in digital innovation to enhance customer experience and operational efficiency. Previous research has extensively explored digital transformation and employee engagement, but limited studies have investigated the direct influence of digital transformation on employee engagement specifically within the licensed commercial banking sector in Jaffna. Moreover, the moderating role of perceived organizational support in this relationship remains largely unexplored. The main objective of this study is to examine the impact of digital transformation on employee engagement and to assess whether perceived organizational support moderates this relationship within licensed commercial banks. A quantitative research approach was adopted for the empirical phase, utilizing a survey questionnaire distributed to a sample selected through a convenience sampling method. The findings are expected to confirm a positive relationship between digital transformation and employee engagement, while also demonstrating that high perceived organizational support may strengthen this effect. This study contributes both theoretically and practically by addressing an empirical and contextual research gap within the Sri Lankan licensed commercial banking sector. By understanding how organizational support can enhance engagement, this research provides direction for licensed commercial bank management and HR policymakers to develop effective strategies for managing change, improving employee adoption of new technologies, and ensuring successful digital transitions within licensed commercial banks.