The Role of Digital Transformation Capabilities in Improving Banking Performance in Jordanian Commercial Banks

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1.        

The research motivation and how the study answers the research question are not mentioned.

Dear Reviewer,

Thank you for your valuable feedback. We acknowledge your concern that the research motivation and how the study answers the research question were not sufficiently addressed. We have taken your comments seriously and have revised the introduction to provide greater clarity.

Strengthened the research motivation: We have added context about the increasing pressure on the Jordanian banking sector to undergo digital transformation due to global fintech trends, shifting customer expectations, and heightened competitive pressures.

Expanded on the research gap: We have clarified that prior research has largely overlooked the nuanced interplay between technological adaptation, strategic positioning, competitive positioning, and financial performance in Jordanian banks. We have also added that research in this specific area is limited.

Maintained the clear research question: The introduction now clearly states the research question: "How do digital transformation capabilities help banks improve their performance?"

Improved context: We have added a brief overview of the Jordanian banking sector and its current state of digital transformation.

Revised the abstract and introduction section and follow this tips:

·         Clearly stating the research question.

·         Briefly explain the methodology we will use (survey, quantitative analysis).

·         Highlighting the variables you are examining and how they relate to the question.

·         Stating the purpose of the study and how it intends to fill the gap in the literature.

2. For pointing out the need for a clearer explanation of how the study answers the research question. We acknowledge that the original manuscript could have more explicitly demonstrated the connection between our findings and the question: 'How do digital transformation capabilities help banks improve their performance?'

Direct Link to Research Question:

"This study examines how digital transformation capabilities (DTC) can enhance the performance of commercial banks in Jordan." This connects the research to the question we're trying to answer.

We have revised the manuscript to more explicitly demonstrate how the study answers the research question.

1.       Enhanced Presentation of Results

2.       Explicit Link to the Research Question in the Discussion

3.       Detailed Explanation of Impact

Page 1 abstract

"The Jordanian banking sector is grappling with the challenges of a rapidly evolving digital landscape, where global fintech advancements, changing customer expectations, and fierce competition necessitate significant digital transformation."

Page 3

"This study addresses this gap by providing a focused analysis of these DTC within 16 Jordanian commercial banks. ….cost reduction, and enhanced customer satisfaction"

Page 3

" The motivation for this study stems from the critical need for …..impact of digital transformation capabilities (DTC) on bank performance in this context."

Page 2

Paragraph 3

"The Jordanian banking sector….and financial performance in Jordanian banks"

Page 10-12

Table 5-8

Revised the results and discussion section

2.        

The theoretical arguments should be improved.

We sincerely appreciate your comment regarding the need to improve our theoretical arguments. We agree that a more robust theoretical framework will enhance the clarity and impact of our research. In the revised manuscript, we will:

Expand on the theoretical underpinnings of [RBV theory and Dynamic capabilities theory, diffusion of innovation theory]: We will provide a more comprehensive review of the relevant literature and explicitly define the key concepts and assumptions of [Digital transformation] as they relate to our study. As well, Strengthen the links between theory and findings

Page 5

Page 6

3.        

No need to bring the country name in the hypotheses.

We appreciate the reviewer's suggestion and agree that the country name is not essential in the hypotheses. We will revise the hypotheses to remove the specific country reference, focusing on the general relationship between the variables.

removed from all hypotheses as highlighted

4.        

The additional analyses should be conducted.

Harman's single-factor test

Multicollinearity Analysis (VIF)

Homoscedasticity Assessment

Normality of Residuals Test

Robust Standard Errors Calculation

Methodology

Result section

5.        

The research implications should be stated.

Thank you for pointing out the absence of a dedicated implications section. We agree that this is essential and will add a thorough discussion of the research implications in the revised manuscript.

Page 14

6.        

The discussion should be added to the study

In the revised manuscript, we will enhance the discussion section by providing a more comprehensive interpretation of our results and exploring their broader implications.

Page 13

7.        

Needs to conduct proofreading

Thank you for your feedback. We confirm that the manuscript has undergone professional English editing by MDPI. Please find the attached English Editing Certificate as proof.

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1.        

SUMMARY

"This paper discusses digital transformation processes in Jordanian banks and presents the results of an empirical study based on a survey of bank managers in that country. The paper is well written, and the subject is relevant, but the reported developments and paper presentation require substantial improvements to ensure study transparency and replicability."

Thank you for your insightful comments and for recognizing the relevance of our research on digital transformation in Jordanian banks. We appreciate your feedback regarding the need for improved study transparency and replicability.

To enhance replicability, we will provide a detailed description of the data analysis procedures, including the software and tools used. We will also clarify any data preprocessing steps.

2.        

ANALYSIS

"The paper provides an introduction and a literature review regarding the digitisation needs of banks and the previous studies on digital transformation processes in this domain. These studies justify formulating three research hypotheses and a logical model, which unfolds into a linear regression investigation in the subsequent sections. The paper concludes by discussing the research findings and prospects for further development."

Thank you for your accurate summary of the paper's structure and flow. We appreciate you recognizing the logical progression from the literature review and hypotheses to the regression analysis and discussion. We have worked to ensure that the hypotheses are clearly derived from the literature review, and that the regression analysis directly tests those hypotheses. We also appreciate you mentioning the 'prospects for further development,' and we will review that section to see if we can add any further insight.

3.        

" The literature review investigates only the most recently published papers and leaves out important references. For example, on Page 4, the authors attribute to Veldhoven and Vanthienen (2023) that "the path to digital transformation was founded on a set of competencies", but these competencies were studied before by Souza and Rocha (2019)."

Thank you for your valuable feedback and for highlighting the specific example regarding Veldhoven and Vanthienen (2023) and Souza and Rocha (2019). We appreciate you pointing out the potential omission of earlier relevant work. We acknowledge that Souza and Rocha (2019) should have been included in our discussion of the foundational competencies for digital transformation. We will rectify this by incorporating their work, along with other relevant earlier studies, into the revised literature review.

We also recognize the importance of including foundational work in our literature review. We will expand the scope of our review to incorporate seminal studies and key contributions from earlier periods, ensuring a more comprehensive and balanced perspective. To do this, we will conduct a thorough search using broader keywords and databases and will also examine the reference lists of cited papers to identify relevant earlier works.

We are committed to addressing this concern and strengthening the literature review to provide a more comprehensive and robust foundation for our research.

Page 4

4.        

" Concerning the discussion of the role of leadership in digitisation processes, on Page 5, where a reference is missing, the authors may check the work of Cheng, Frangos and Groysber (2021)."

Thank you for pointing out the missing reference on Page 5 regarding the role of leadership in digitization. We appreciate you suggesting the work of Cheng, Frangos, and Groysberg (2021). We will carefully review Cheng, Frangos, and Groysberg (2021) and incorporate it into the discussion if it aligns with our findings. We are committed to ensuring that our literature review thoroughly addresses the role of leadership in digitization, and your suggestion will help us strengthen this section.

Page 6

5.        

" Moreover, references are also missing in the following sentences:
Page 2: "Despite the increasing research that discusses digital transformation within the same framework"

Thank you for pointing out the missing references on Page 2 regarding the statement about increasing research on digital transformation. We appreciate your attention to detail. We will address this by adding appropriate references to support the claim that there is increasing research discussing digital transformation within the same framework. Our intention was to provide a general overview of the growing body of research, but we agree that specific citations are necessary to strengthen this point.

We have rephrased the paragraph and referenced the works of Verhoef et al. (2021) and Vial (2019).

Page 2

6.        

Page 3: "Digital transformation of commercial banks ... and services etc"

We are committed to ensuring the accuracy and completeness of our citations and will revise the manuscript accordingly.

Page 3

Add the reference of

"Financial Stability Board. (2020). Enhancing cross-border payments: Building blocks of a global roadmap. FSB."

And rephrase the cited text.

7.        

The formulation of the research hypotheses and the experimental setting require more details.

We acknowledge that the formulation of our hypotheses requires further clarification. We will expand the explanation of the theoretical framework, specifically (using RBV theory, Dynamic capabilities theory, and Diffusion of Innovation theory) and provide a more detailed step-by-step account of the logical reasoning that led to the development of H1, H2 and H3.

Page 4

"The interplay between the Resource-Based View (RBV) and Dynamic Capabilities Theory (DCT)….. performance in the Jordanian context"

 Page 5

"This study investigates the relationship …. this research hypothesizes that"

Page 5

"Based upon Porters five forces … therefore this hypothesis is highly relevant to this research"

Page 7

"Hypothesis 3 is informed by a synthesis of Resource-Based View (RBV) theory ..

8.        

Most of the need for transparency comes from the authors not disclosing their interview questionnaires, which can be presented as an appendix or supplementary material.

Thank you for highlighting the omission of the interview questionnaires. We will include them as an appendix in the revised manuscript to enhance transparency and replicability.

9.        

The paper must also explicitly define and present the investigated dependent and independent variables.

We will also ensure that the key terms, 'technological adaptation', 'Competitive positioning', 'Strategic positioning' and 'performance,' are clearly defined and operationalized.

Page 5

"Technological adaptation …..reflecting their profitability and efficiency."

Page 5

"Competitive positioning is defined as the banks relative standing in the marketplace…"

Page 7

"Strategic positioning encompasses…. "

10.    

Concerning the studied subjects, it would be interesting to hear more about the Jordanian banking system (universe of study), particularly how many banks there are in the country, their size, their current overall situation (in terms of financial indicators, compliance with Basel requirements and others) and their current digitisation levels. This information would contrast with the information presented at the beginning of the Results section concerning the studied sample

Thank you for your valuable feedback regarding the need for a more detailed overview of the Jordanian banking system. We appreciate you highlighting the importance of contextualizing our study and providing a clearer picture of the universe of study.

Page 3 under introduction section

11.    

"At that point, the authors would have to justify why they consider the sample demographics as a result of their study or revise the respective text."

"They must also clarify the rationale for presenting reliability information therein."

" Moreover, the need to correlate the research questions among themselves must be explicitly clarified in the paper."

Thank you for your comment regarding the presentation of the sample demographics. We appreciate your concern about clarifying their role in our study.

Therefore, these demographics are not a 'result' but a description of our sample.' We will revise the manuscript to present the demographic data as a descriptive overview of the sample. We have moved the sample demographics to the methodology section.

We agree that this information is more appropriately placed in the methodology section. We will revise the manuscript to move this section to the methodology and adjust the wording to reflect that it is a description of our measurement procedures.

Thank you for your comment regarding the need to clarify the rationale for correlating our research questions. We appreciate your attention to this important aspect of our methodology

Page 10

"The demographic data presented in Table 1 reflects the characteristics …"

Page 12

"Our research questions are inherently related as they all contribute …."

12.    

Readers may wonder about the validity of the hypothesis testing, considering that the aforementioned details have not been provided. For example, the authors mentioned in their paper that they investigated the performance of Jordanian banks without clarifying how they measured bank performance. Presumably, they have heard from the interviewed managers about this topic, but if the whole study is based only on the answers obtained from the interviews, the hypotheses must be formulated considering that the dependent variable under investigation is the perception of performance, not bank performance itself. If that is the case, the authors must also clarify how they have treated the potential risk of bias in their perceptual studies.

g

Thank you for your insightful comment regarding the clarity of our performance measurement and the potential for perceptual bias. We recognize the importance of addressing these issues to ensure the validity of our findings.

Bank performance was measured using a perceptual scale administered to bank managers. We have revised our hypotheses to accurately reflect that our dependent variable is perceived bank performance.

We have included a section in the methodology that addresses the potential risk of bias inherent in perceptual studies. We have described the strategies implemented to mitigate this risk, including:

• Developing a structured survey with clearly defined performance indicators.
• Providing clear and neutral instructions to managers, emphasizing the importance of objective and unbiased assessments.
• Ensuring the complete anonymity of responses to reduce social desirability bias.
• Conducting Harman's single-factor test to assess and demonstrate that common method bias is unlikely to be a significant concern. The results of this test, presented in Table 2, show that the first factor accounted for 38.2% of the total variance, below the 50% threshold.

Page 10

"Bank performance was measured exclusively using a perceptual scale administered ….. personal biases or concerns about repercussions."

Page 10

"Given that our assessment of bank performance relied solely on managers' perceptions, we acknowledge the inherent potential for perceptual bias…."

Page 11 + 12

13.    

An analysis of the robustness of the research findings must accompany the investigation of the hypotheses. The authors should clarify whether they have considered multicollinearity and homoscedasticity in their study. For robustness assurance, they must consider methods such as testing the normality of the residuals, calculating robust standard errors or performing cross-validation.

Thank you for highlighting the need for robustness checks. We've addressed multicollinearity (VIF values below 5, Table 9), homoscedasticity (Breusch-Pagan test p > 0.05, Table 10), and normality of residuals (Shapiro-Wilk test p > 0.05, Table 11). We also calculated robust standard errors (Table 12), confirming the consistency of our findings. These analyses strengthen the reliability of our revised manuscript.

Page 16-18

14.    

"The strength of some statements, such as that "digital transformation has greatly improved competitiveness, productivity and others", on Page 13, should be weighted and relativised based on the robustness and strength of the reported findings."

We appreciate the reviewer's concern regarding the strength of our statement on Page 13 concerning the impact of digital transformation on competitiveness and productivity. We acknowledge that the original phrasing was too strong and did not adequately reflect the nature of our findings, which are based on perceived performance and the robustness of our analysis.

In response, we have revised the statement on Page 13 to be more nuanced and cautious. Specifically, we have replaced the phrase 'digital transformation has greatly improved competitiveness, productivity and others' with:

Despite the perceived benefits of digital transformation for competitiveness, productivity, and customer experience, the Jordanian banking sector faces persistent challenges. Inadequate infrastructure, varying digital literacy, and the need for skilled IT professionals represent significant potential limitations. Additionally, we have conducted and reported robustness checks These tests, as detailed in the results section, have strengthened the reliability of our findings and provided a more robust foundation for our conclusions.

Page 19

15.    

Concerning the paper presentation, there are also possible improvements. On Page 3, after the first paragraph, readers could value reading concrete examples of technology applications towards digital transformation in the banking sector and references to these examples.

We appreciate the reviewer's suggestion to enhance the paper presentation by providing concrete examples of technology applications in the banking sector on Page 3. We agree that this addition will significantly improve the reader's understanding of digital transformation in this context.

In response, we have added a new paragraph after the first paragraph on Page 4, which includes specific examples such as:

• AI-powered chatbots for real-time customer support.
• Blockchain technology for secure transaction processing.
• Personalized mobile banking applications.
• Data analytics for fraud detection and risk assessment.

We have also included relevant references to support these examples, ensuring that the information is well-grounded and properly attributed.

We believe that these additions have successfully addressed the reviewer's concern and will enhance the overall clarity and value of the introduction for our readers. Thank you for this constructive feedback.

Page 4

" In the pursuit of digital transformation, the banking sector has …… landscape, driving operational improvements, and enhancing customer experiences."

16.    

On the other hand, on Page 4, the example mentioning the case of Amazon could be replaced by another more specific to the banking sector.

We appreciate the reviewer's suggestion to replace the Amazon example on Page 4 with a more relevant example from the banking sector. We replaced the Amazon example on Page 4 with Emirates NBD's Liv., a banking-specific example, enhancing the paper's focus. Citations have been added (Emirates NBD, 2023a, 2023b)

Page 6

"To illustrate the importance of a customer-centric approach in digital transformation, we can consider the case of Emirates NBD …"

17.    

DETAILS
The paper would benefit from a thorough revision by a native English speaker.

We acknowledge the reviewer's comment regarding the paper's English language. We will have the revised manuscript professionally edited by a native English speaker to ensure clarity and academic standards.

18.    

Below are some details that the authors may wish to treat in producing a revised paper version:
Page 1, Introduction: add "the" in "them in financial sector";
Page 1, Introduction: what are the "businesses" referred to in the middle of the first paragraph?
Page 1, Introduction: substitute "researcher" by "research" in line 15;
Page 4, Review: "In addition to creating ... fragmented markets" is an incomplete sentence;
Page 6, Research Design: remove "as" from "formed as the basis";
Page 6, Research Design: rephrase "creating a one survey";
Page 13, Conclusions: remove "into" from "the study investigated into how ...";
Page 13, Conclusions: add "of study" to "the scope to include";
References: All the journal names must be typed using italics;
Reference Tawfiq & Abdullah (2023): The paper name must not be capitalised

We appreciate the reviewer's meticulous attention to detail. We have addressed all the specific points raised, including:

• Adding "the" on Page 1.
• Clarifying "businesses" on Page 1.
• Correcting "researcher" to "research" on Page 1.
• Completing the sentence on Page 4.
• Removing "as" on Page 6.
• Rephrasing "creating a one survey" on Page 6.
• Removing "into" on Page 13.
• Adding "of study" on Page 13.
• Italicizing journal names in the References.
• Correcting the title in the Tawfiq & Abdullah (2023) reference.

Thank you for these precise and helpful corrections.

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1.        

"The abstract stated wrongly that technological adaptation, strategic positioning, and competitive positioning were dependent variables, while financial performance was the independent variable. This should be corrected."

"The abstract mentioned 78%, 69%, and 64%, but it was unclear whether these were beta coefficients, R² values, or another metric. Clearly explain what these numbers represent."

Dear Reviewer,

Thank you for your valuable feedback and insightful comments on our manuscript, 'The Role of Digital Transformation Capabilities in Improving Banking Performance in Jordanian Commercial Banks.' We appreciate the opportunity to revise and improve our work based on your suggestions.

We have carefully addressed the concerns you raised regarding the identification of independent and dependent variables and the clarification of the percentage values.

We believe that these revisions have significantly improved the accuracy and clarity of our manuscript. We have also taken the time to review the entire paper to ensure consistency and to correct any related errors.

Abstract

2.        

Introduction

"The introduction should be enriched by discussing why Jordanian banks need digital transformation, Jordanian industry challenges, regulatory policies and digital adoption trends."

We agree that enriching the introduction with more context about the specific needs and challenges of the Jordanian banking sector, as well as regulatory policies and digital adoption trends, will significantly enhance the paper's foundation.

We have revised the introduction to include:

• Reasons for Digital Transformation in Jordanian Banks: We have elaborated on the specific drivers of digital transformation in Jordan, such as increasing competition from FinTech companies, evolving customer expectations for digital services, and the need to improve operational efficiency.
• Jordanian Industry Challenges: We have discussed the unique challenges faced by Jordanian banks, including economic uncertainties, regulatory compliance requirements, and the need to expand financial inclusion.
• Regulatory Policies: We have included a discussion of the Central Bank of Jordan's (CBJ) initiatives and policies that are promoting digital transformation in the banking sector, such as the national financial inclusion strategy and regulations related to digital payments.
• Digital Adoption Trends: We have provided more detailed information on the current digital adoption trends in Jordan, including the increasing use of mobile banking, digital wallets, and online financial services.

We believe that these additions provide a more comprehensive and contextualized understanding of the Jordanian banking sector and the importance of digital transformation in this region.

Introduction

3.        

"The introduction didn’t clearly explain why digital transformation was particularly relevant for Jordanian banks. Provide context from Jordan on challenges in digital adoption, regulatory influences, or competitive pressures in the sector."

We agree that providing more Jordan-specific context is crucial.

We have revised the introduction to more clearly explain the relevance of digital transformation by:

• Highlighting Specific Jordanian Challenges:

We have included details on the unique challenges faced by Jordanian banks, such as the need to improve financial inclusion in a specific Jordanian context, the impact of regional economic instability on the Jordanian banking sector, and the specific hurdles to compete with the increase of Jordanian fintech companies.

• Emphasizing Regulatory Influences in Jordan:

We have expanded on the role of the Central Bank of Jordan (CBJ) in driving digital transformation, citing specific CBJ initiatives and policies related to digital payments, cybersecurity, and data protection. We have included reports and statistics from the CBJ to back up our claims.

• Illustrating Competitive Pressures in the Jordanian Sector:

We have provided data on the increasing presence of FinTech companies in Jordan and the growing demand for digital services among Jordanian consumers. We have also discussed the competitive landscape within the Jordanian banking sector, highlighting the need for banks to differentiate themselves through digital innovation.

• Digital adoption trends:

We have added statistics on the digital adoption trends within Jordan, showing the increase in mobile banking users, and online payment methods.

We believe these additions provide a more focused and relevant context for understanding the importance of digital transformation in the Jordanian banking sector.

Introduction

4.        

"The introduction lacks a strong justification for why Jordanian commercial banks were selected and does not sufficiently highlight the research gap"

We acknowledge that these aspects require further clarification.

We have revised the introduction to:

• Provide a Stronger Justification for Selecting Jordanian Commercial Banks:

We have added specific details about the significance of the Jordanian commercial banking sector within the national economy, emphasizing its role in financial stability and economic development.

We have highlighted the sector's unique characteristics, such as its concentrated market structure and its active pursuit of digital transformation under the Central Bank of Jordan's (CBJ) guidance.

We have included the fact that the Jordanian banking sector is facing unique challenges due to the regional economic situation.

We have also included the fact that there is an increase of Fintech companies within the Jordanian market, that are creating a competitive environment.

• Clearly Articulate the Research Gap:

We have further emphasized the lack of empirical research specifically examining the impact of digital transformation capabilities (DTC) on bank performance within the Jordanian context.

We have clarified that while digital adoption trends have been studied, the nuanced interplay between specific DTC (technological adaptation, strategic positioning, competitive positioning) and perceived performance has been largely overlooked.

We have also added that there is a lack of research that combines the Resource-Based View (RBV) theory, Dynamic Capabilities theory, and Diffusion of Innovation theory, within the Jordanian banking sector.

We believe that these revisions provide a more compelling rationale for our research and clearly establish the significance of our study in addressing the identified research gap.

Introduction

5.        

"Clearly explain what has been studied before and what unique contribution your paper does compared to previous research."

We agree that this is essential for demonstrating the novelty and significance of our study.

We have revised the introduction and literature review to:

• Clearly Explain What Has Been Studied Before:

We have provided a more detailed overview of existing research on digital transformation in the banking sector, particularly within the Jordanian context.

We have highlighted the key findings and limitations of previous studies, focusing on their approaches, methodologies, and the variables they examined.

We have expanded the literature review to include more studies that have been conducted within the Jordanian banking sector.

• Clearly Explain the Unique Contribution of Our Paper:

We have emphasized that our study uniquely examines the impact of specific digital transformation capabilities (DTC)—technological adaptation, strategic positioning, and competitive positioning—on perceived performance within Jordanian commercial banks.

We have highlighted that prior research has largely overlooked the nuanced interplay between these specific DTC variables and bank performance in the Jordanian context.

We have specified that our research combines the Resource-Based View (RBV) theory, Dynamic Capabilities theory, and Diffusion of Innovation theory, within the Jordanian banking sector, which is a unique combination.

We have clarified that our study provides empirical evidence on the impact of these DTC on perceived performance, contributing to a deeper understanding of the factors driving digital transformation success in the Jordanian banking sector.

We have also pointed out that there is a lack of research that focuses on perceived performance, and instead most research focuses on financial performance.

We believe that these revisions clearly articulate the unique contribution of our research and demonstrate its value in advancing the understanding of digital transformation in the Jordanian banking sector.

Introduction

Literature review

6.        

" The paper lacks a solid theoretical framework and no theories such as Resource-Based View (RBV), Dynamic Capabilities Theory were mentioned to justify the research model."

Thank you for your feedback regarding the theoretical framework. We acknowledge that while we mentioned Resource-Based View (RBV) and Dynamic Capabilities Theory (DCT), their application and integration within our research model required further elaboration.

We have significantly revised the literature review to:

• Strengthen the Theoretical Framework:

1.      We have expanded the discussion of RBV and DCT, providing a more detailed explanation of their core principles and relevance to our study.

2.      We have clarified how RBV informs our understanding of digital transformation capabilities (DTC) as valuable, rare, inimitable, and non-substitutable resources that can contribute to competitive advantage.

3.      We have further elaborated on how DCT explains the dynamic nature of these capabilities, emphasizing the importance of sensing, seizing, and reconfiguring resources in response to the rapidly evolving digital landscape.

4.      We have expanded on the Diffusion of Innovation theory, and how it relates to the speed of adoption of digital transformation.

5.      We have provided a deeper explanation of how these three theories work together.

Literature review section

7.        

We acknowledge that this aspect required further development.

We have significantly revised the literature review, and we would like to highlight the specific improvements we have made to address your concern, incorporating examples from the revised text:

• Expanded Coverage of Empirical Studies:

1.       We have broadened our search and included a more comprehensive range of empirical studies, focusing on digital transformation in banking, particularly within emerging market contexts.

2.       For instance, we have incorporated findings from studies such as Rodrigues et al. (2022), which highlight the role of digital data and technologies like artificial intelligence and cloud computing in enhancing productivity. This directly relates to our investigation of technological adaptation within Jordanian banks.

3.       We have added more studies that have been conducted within the Jordanian banking sector, such as Alqararah & Wan, (2021) which confirm the competitive advantage role in generate value through deploying IT capabilities in the banking industry such as IT-enabled intangibles.

• Emphasis on Emerging Market Context:

1.       We have given particular attention to studies conducted in emerging markets, recognizing their unique challenges and opportunities. We have compared and contrasted these findings, identifying common themes and variations relevant to the Jordanian context.

2.       Specifically, we have highlighted studies that examine the influence of regulatory factors, cultural influences, and technological infrastructure on digital transformation outcomes in emerging markets. For example, we now discuss how the Financial Stability Board (FSB, 2020) analyzes the implications of digital transformation in cross-border payments, which is highly relevant to the Jordanian banking sector's need to adapt to global financial trends.

• Direct Linkage to Our Research:

1.       We have strengthened the connection between previous empirical studies and our research questions and hypotheses. We have explicitly demonstrated how our study builds upon and extends the existing body of knowledge.

2.       For example, we have shown how our study addresses gaps identified in previous research, such as the lack of focus on the nuanced interplay between specific DTC variables and perceived performance in the Jordanian context. Unlike previous studies that primarily focus on financial performance, we are focusing on perceived performance.

3.       We have highlighted how our research combines the Resource-Based View (RBV) theory, Dynamic Capabilities theory, and Diffusion of Innovation theory, within the Jordanian banking sector. For example, we have expanded our discussion on how Teece (2007) and Eisenhardt & Martin (2000) contribute to the dynamic capabilities theory, and how that relates to the Jordanian banking sector.

We believe that these revisions demonstrate a deeper engagement with the existing empirical literature and provide a more robust foundation for our research.

Literature review section

8.        

"Expand the literature review by discussing previous studies from other regions, digital transformation in European, Asian, or MENA-region banks to provide a comparative perspective."

"The literature review should include comparisons with studies from other banking sectors, including developed vs. emerging markets to provide a broader context.

Clearly link each independent variable (DTC dimensions) to financial performance using existing literature."

Thank you for your feedback regarding the expansion of the literature review. We have addressed your concerns by:

• Incorporating Regional Comparisons: We have added a comparative analysis of digital transformation in European, Asian, and MENA-region banks, highlighting key differences and similarities.
• Including Developed vs. Emerging Market Comparisons: We have expanded the literature review to include comparisons between developed and emerging market banking sectors, providing a broader context.
• Strengthening Links between DTC Dimensions and Performance: We have clearly linked each independent variable (DTC dimensions) to financial performance using existing literature, providing stronger justification for our hypotheses.

We believe these revisions have significantly enhanced the literature review and provided a more comprehensive understanding of digital transformation in banking.

Literature review

" To provide a comparative perspective, this literature review has been expanded to include digital transformation trends in European, Asian, and MENA-region banks. In Europe, stringent regulations ……(Deloitte, 2020; SAMA, 2021; UN ESCWA, 2022). These regional differences provide a valuable contextual backdrop for understanding the unique challenges and opportunities facing Jordanian commercial banks.

"

9.        

"The term competitiveness positioning was not correct instead you should put competitive positioning."

Thank you for pointing out the typographical error. We have corrected 'competitiveness positioning' to 'competitive positioning' throughout the manuscript. We apologize for the oversight and appreciate your attention to detail.

Corrected along the paper

10.    

Methodology

"The study uses a sample of 129 managers from 16 commercial banks, but no justification was provided whether this sample was statistically adequate."

We acknowledge that we did not explicitly justify the sample size in the original manuscript.

We have now added the following justification to the methodology section:

• Rationale for Sample Size:

1.       We explain that while a larger sample is often desirable, the practical constraints of accessing senior bank managers in a concentrated market like Jordan influenced our final sample size.

2.       We have added a section explaining that, given the population of 16 commercial banks, and the targeted group of senior managers, that the sample size is adequate.

3.       We have included a section that mentions the use of G*Power software, which indicated that the sample size of 129 is adequate for our regression analysis, given our effect size, alpha level, and power.

4.       We have also added that the sample size is adequate, when compared to similar studies that have been conducted within the Jordanian banking sector.

We believe that this explanation provides a more robust justification for our sample size and demonstrates that it is statistically adequate for our analysis.

Methodology section

"The research findings were reported using descriptive statistics …… aligns with sample sizes used in similar studies conducted within the Jordanian banking sector (e.g., Hendawi et al., 2024)."

11.    

"The study states that linear regression was used, but does not specify whether it was simple or multiple regression. Due to multiple independent variables, this should be clearly stated."

Thank you for your feedback regarding the clarity of the regression analysis. We acknowledge that the initial manuscript did not explicitly specify the type of linear regression used.

We have now revised the methodology and results sections to clearly state that multiple linear regression was employed as the primary analysis. This is due to the presence of three independent variables (technological adaptation, competitive positioning, and strategic positioning) and one dependent variable (perceived performance).

We have also retained the simple linear regression analyses (Tables 6-8) to provide a preliminary understanding of the bivariate relationships between each independent variable and perceived performance. However, we have made it clear that the multiple linear regression (Table 9) is the primary analysis, as it allows us to examine the combined and unique effects of the independent variables.

Furthermore, we have added explanations of the VIF values and R-squared values to the multiple regression results, and have ensured that the rest of the paper is consistent with the multiple regression analysis.

We believe these revisions address your concern and provide a more accurate and transparent presentation of our statistical methods.

Results section

12.    

" Financial performance can be influenced by other factors, such as bank size, years of digital adoption, market competition. Did you consider relevant control variables as a limitation? Explain"

We acknowledge that not including control variables like bank size, digital adoption years, and market competition is a limitation. Our study focused on perceived performance and faced data collection challenges. We've added this limitation to the discussion section and suggest future research include these controls and objective financial measures for a more comprehensive analysis

13.    

Discuss limitations such as survey response bias or self-reported financial performance data.

Thank you for your valuable feedback regarding potential limitations in our study. We acknowledge your concern about survey response bias and the use of self-reported perceptual data for performance assessment.

We understand that relying solely on bank managers' perceptions might introduce bias, and that these perceptions may not perfectly align with objective financial performance. We aimed to capture the managers' subjective assessment within the context of digital transformation, recognizing its importance in strategic decision-making.

While we conducted Harman's single-factor test to address potential common method bias, and used robust standard errors to mitigate heteroscedasticity, these tests do not directly validate the accuracy of the perceived performance data against objective financial metrics. Therefore, we recognize that the absence of a direct comparison with objective financial data is a limitation of our study.

In the revised manuscript, we have explicitly addressed these limitations in the discussion section. We have emphasized that the use of perceptual data may introduce bias and that future research should consider incorporating objective financial measures to validate and complement our findings. We have also added that future studies could use methods such as multi-source data collection to mitigate the risk of response bias and enhance the validity of the findings.

14.    

Results & Discussion

"Compare findings with previous studies whether results aligned with prior research on digital transformation in banking which also found a significant impact of technological adaptation on performance.

Provide clear managerial recommendations such as banks should invest in digital infrastructure to improve operational efficiency."

We've expanded our discussion to compare findings with prior studies, citing those like Al-Smadi & Al-Wabel (2011) and Al-Tit et al. (2019) that also found a significant positive impact of technological adaptation on performance. We've also added comparisons for strategic and competitive positioning.

We've enhanced managerial recommendations, suggesting banks invest in digital infrastructure (data analytics, cloud, cybersecurity) for operational efficiency, develop aligned digital strategies, and differentiate through unique digital offerings and personalized services. We also discussed organizational culture improvements.

15.    

Conclusion & Future Research

"Emphasize how this study contributed to theory, extending RBV to digital banking and practice, guiding managers in digital strategy implementation.

The conclusion didn’t effectively summarize theoretical contributions.

The recommendations for future research were too broad.

The study didn’t discuss non-financial performance factors such as customer satisfaction, innovation, or operational efficiency."

We've strengthened the conclusion to highlight theoretical contributions, specifically extending Resource-Based View (RBV) to digital banking, supported by citations like Barney (1991) and Teece (2010). We've also refined managerial recommendations, referencing specific digital strategies discussed in Al-Tit et al. (2019). Future research suggestions are now more focused, as per recommendations from authors such as Porter (1985) and Damanpour (1991). We've added a discussion on non-financial performance factors, drawing on research from authors like Kaplan & Norton (1992) and Davenport (1993), to include customer satisfaction, innovation, and operational efficiency.

16.    

"Some sentences were awkwardly phrased or grammatically incorrect. A thorough proofreading is necessary."

Thank you for your feedback. We confirm that the manuscript has undergone professional English editing by MDPI. Please find the attached English Editing Certificate as proof.