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Article

The Mediating Role of Psychological Empowerment on the Relationship Between Digital Transformation, Innovative Work Behavior, and Organizational Financial Performance

by
Saqib Muneer
1,*,
Ajay Singh
2,
Mazhar Hussain Choudhary
1 and
Awwad Saad Alshammari
2
1
Department of Economics and Finance, College of Business Administration, University of Ha’il, Ha’il 55476, Saudi Arabia
2
Department of Management and Information Systems, College of Business Administration, University of Ha’il, Ha’il 55476, Saudi Arabia
*
Author to whom correspondence should be addressed.
Behav. Sci. 2025, 15(1), 5; https://doi.org/10.3390/bs15010005
Submission received: 7 November 2024 / Revised: 13 December 2024 / Accepted: 19 December 2024 / Published: 26 December 2024

Abstract

With the use of digital technologies in today’s innovation era, the financial sector has transformed how they facilitate customer business and generate a high level of revenue. This study aims to explore the relationship between innovative work behavior (IWB), digital transformation (DT), and organizational financial performance (OFP) to analyze the mediating role of workers’ psychological empowerment (PE) between independent and dependent variables. Further, we examined the moderating role of smart technologies (ST) between PE and OFP. This study collected data from Saudi banking sector employees using a well-structured questionnaire adopted from previous literature. Next, Smart-PLS was used to analyze the data using the structural equation modeling-partial least squares (SEM-PLS) approach. The results reveal that IW positively relates to OFP, with PE mediating this relationship. Furthermore, DT positively affects OFP. ST acts as a positive moderator that enhances workers’ PE and OFP. Meanwhile, PE, as a mediator, positively relates DT and IWB to OFP. Overall, this study makes valuable theoretical, empirical, and practical contributions, which can benefit bank management, policymakers, and future academic research.
Keywords: digital transformation; organizational financial performance; psychological empowerment; IWB digital transformation; organizational financial performance; psychological empowerment; IWB

Share and Cite

MDPI and ACS Style

Muneer, S.; Singh, A.; Choudhary, M.H.; Alshammari, A.S. The Mediating Role of Psychological Empowerment on the Relationship Between Digital Transformation, Innovative Work Behavior, and Organizational Financial Performance. Behav. Sci. 2025, 15, 5. https://doi.org/10.3390/bs15010005

AMA Style

Muneer S, Singh A, Choudhary MH, Alshammari AS. The Mediating Role of Psychological Empowerment on the Relationship Between Digital Transformation, Innovative Work Behavior, and Organizational Financial Performance. Behavioral Sciences. 2025; 15(1):5. https://doi.org/10.3390/bs15010005

Chicago/Turabian Style

Muneer, Saqib, Ajay Singh, Mazhar Hussain Choudhary, and Awwad Saad Alshammari. 2025. "The Mediating Role of Psychological Empowerment on the Relationship Between Digital Transformation, Innovative Work Behavior, and Organizational Financial Performance" Behavioral Sciences 15, no. 1: 5. https://doi.org/10.3390/bs15010005

APA Style

Muneer, S., Singh, A., Choudhary, M. H., & Alshammari, A. S. (2025). The Mediating Role of Psychological Empowerment on the Relationship Between Digital Transformation, Innovative Work Behavior, and Organizational Financial Performance. Behavioral Sciences, 15(1), 5. https://doi.org/10.3390/bs15010005

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