Digital Transformation and Performance of Commercial Banks in Zimbabwe: The Mediating Role of Information Technology Capability

The need for digital transformation (DT) to address organisational performance challenges has received heightened attention from scholars and practitioners in recent years. Nonetheless, evidence on DT effects on commercial bank performance in the context of developing countries, especially in Zimbabwe, remains scarce as most studies have focused on jurisdictions outside Africa. This study empirically examined the association between DT and the performance of commercial banks in Zimbabwe, with a specific focus on the role of IT capability as a mediating mechanism. In particular, the study assessed the effects of DT on employee productivity, IT innovation, IT capability, and commercial bank performance, and hypothesised positive relationships among these constructs, including an indirect pathway where DT improves bank performance through strengthened IT capability. Using a quantitative study approach and stratified random sampling, the study extracted data from 310 commercial bank employees in Zimbabwe. Structural Equation Modelling (SEM) was applied using SPSS/AMOS to test the proposed relationships. The results show that DT has a positive and significant effect on employee productivity, IT innovation, and IT capability, and that both IT innovation and employee productivity contribute positively to commercial bank performance. Importantly, the study confirms that IT capability positively mediates the relationship between DT and bank performance, highlighting IT capability as a critical mechanism through which DT yields performance gain. Practically, the study results suggest that commercial bank managers should deepen investment in DT, strengthen employee participation in transformation initiatives, and systematically enhance IT capability to maximise performance outcomes. Policymakers and regulators should create an enabling environment that supports bank digitalisation and capability development. Future research is encouraged to adopt mixed-method and longitudinal designs, incorporate additional mediators and moderators, and expand stakeholder perspectives to strengthen causal inference and contextual relevance.