The Relationship Between IT Governance, Digital Financial Transformation, and Economic Sustainability Performance

Abstract

This study empirically examines how information technology (IT) governance and digital financial transformation interact to influence economic sustainability performance. The research instrument used in the current study is a questionnaire survey. The data were collected from different government authorities in Oman. The study used convenience and snowball sampling to collect the data. Online questionnaire platforms, such as Google Forms, were used to collect data for the current study. The data collected for the current study were from 104 respondents. The results indicate that IT governance has a significant positive effect on digital financial transformation. Further, digital financial transformation has effectively and significantly enhanced the level of economic sustainability performance. However, IT governance does not have a direct effect on economic sustainability performance; rather, it has an indirect effect on economic sustainability performance through the mediating effect of digital financial transformation. These findings provide actionable implications for policymakers and practitioners to enhance awareness and integration of governance across different aspects in the context of digital financial transformation. The present study contributes to the literature and offers a unique perspective to the existing body of knowledge by highlighting the importance of IT governance as a key driver for digital financial transformation and economic sustainability performance.

1. Introduction

Sustainability performance represents the extent to which an institution attains balanced progress across economic, social, and environmental objectives, thereby maintaining long-term viability (Xu et al., 2023). The concept of sustainability performance is gaining increasing prominence within public institutions and the government in general due to the modern environmental, economic, and social issues (Dhyanasaridewi et al., 2024). Sustainability performance implies the attainment of efficient financial and administrative outcomes and the establishment of trust and transparency with the stakeholders (Zheng et al., 2021). Moreover, sustainability performance influences the support of social development and the minimization of adverse environmental effects, as well as adherence to the ethics and legal regulations (Almaqtari, 2024a; Martínez-Peláez et al., 2023).

Sustainability performance has three key dimensions, namely, economic, social, and environmental (Attah et al., 2024; Jalil & Khawaja, 2025; Rosário & Dias, 2022). In spite of the incorporation of these dimensions, economic sustainability performance is the cornerstone on which organisations can persist and improve their long-term performance (D’Adamo et al., 2022; Hung, 2023). Sarkar et al. (2022) also claim that the performance of economic sustainability cannot be considered independently of the other two pillars (social and environmental), but instead is a precondition to overall, viable sustainability. Thus, the inability to achieve economic performance affects the ability of organizations to fulfil their social and environmental engagements (Rosário & Dias, 2022). Billi and Bernardo (2025) state that the lack of economic efficiency and flexibility restricts the capability of organizations to meet their social and environmental responsibilities. Thus, the present research is based on the premise that digital financial transformation (DFT) and IT governance may serve as facilitating factors in improving the economic sustainability performance in terms of Oman Vision 2040.

One of the objectives of the Oman Vision 2040 is economic sustainability performance in the Sultanate of Oman (Aggarwal et al., 2024). Against this backdrop, the Sultanate of Oman has also implemented various measures to improve sustainability performance, including DFT, improving the efficiency of government institutions, community development, and green government programs to encourage clean energy. Moreover, the “Ministry of Transport, Communications, and Information Technology” (MTCIT) has played a pivotal role in advancing economic sustainability in line with Oman Vision 2040 by implementing the National Platform for Unified Government Services (Meras), developing the eOman Portal, developing the Government Cloud Infrastructure (G-Cloud), and enhancing integration between government agencies through the Government Development Delivery System (GDX). Recent evidence shows that digital advancement and AI can materially improve the efficiency of accounting and financial information systems in taxation and customs authorities, strengthening compliance and reducing legal appeals (Al Ghunaimi et al., 2025a).

Simultaneously, DFT refers to the pursuit of corporate strategy and the development of innovative and flexible business and operating models through the use of technologies, talent development, process reorganization, and change management (Al Darmaki et al., 2025). Globally, demand for digital service accessibility has accelerated, driven by greater Internet penetration and evolving user expectations (Barroso & Laborda, 2022; Y. Wang & Wen, 2024). In light of this, DFT seeks to create added value and new experiences for beneficiaries, employees, and stakeholders (Feroz et al., 2021). According to Alojail and Khan (2023), DFT aims to generate additional economic value through speed and quality in meeting beneficiary needs. The Sultanate of Oman seeks to contribute to the development of digital government to achieve the goals of Oman Vision 2040 by continuously improving performance levels towards achieving a comprehensive digital government.

Information technology (IT) governance refers to the development of frameworks and policies that ensure the use of IT supports corporate objectives, reduces risks, and improves returns on technology investment (Mulyana et al., 2021).

Digital financial transformation (DFT) initiatives fundamentally depend on a well-structured information technology (IT) governance framework that ensures technological and financial systems are implemented securely, efficiently, and in strategic alignment with organizational and national objectives. The MTCIT in the Sultanate of Oman seeks to provide an advanced, secure, and integrated transport, communications, and IT infrastructure that is compatible with urban and economic development and responds to future requirements and sustainability, thereby achieving Oman Vision 2040 (Aggarwal et al., 2024). Furthermore, IT governance at the MTCIT in the Sultanate of Oman is a fundamental pillar for achieving DFT and ensuring the effective and secure use of IT across various sectors. IT governance aims to ensure alignment between the IT strategy and the ministry’s overall strategy and to enhance transparency and accountability.

The MTCIT in the Sultanate of Oman relies on international frameworks and standards to implement governance, such as COBIT (Control Objectives for Information and Related Technologies), ITIL (Information Technology Infrastructure Library), the international standard for Corporate Governance of Information Technology-ISO/IEC 38500 (Enterprise IT Governance), and the NIST Cybersecurity Framework for cybersecurity (Calder, 2008). Moreover, the Ministry has supported IT governance by establishing digital governance councils and committees within the Ministry, developing cybersecurity policies and standards, implementing ERP and business intelligence systems to monitor performance, and developing a technical project management system to ensure quality and economic feasibility.

Despite the growing academic and policy interest in digital transformation and IT governance, limited empirical research has examined their combined impact on economic sustainability within the context of national development strategies such as Oman Vision 2040. Accordingly, this research aims to investigate the relationship between IT governance, DFT, and economic sustainability performance in light of the IT governance framework at the MTCIT in the Sultanate of Oman. The research relied on a quantitative approach and primary data to analyse these relationships and conclude at findings using SPSS and Smart-PLS. The study concluded that DFT and IT governance are important in enhancing economic sustainability performance in the Sultanate of Oman. This study has theoretical and practical implications for the Sultanate of Oman, particularly for public institutions and the governance sector, given the importance of DFT and IT governance in enhancing economic sustainability performance. Moreover, IT governance in the Sultanate of Oman at the Ministry of Transport, Communications, and Information Technology is a pillar that will spearhead DFT and the proper and safe application of IT in different sectors. The objectives of IT governance are to make sure there is alignment of IT strategy with the overall ministry strategy and to improve transparency and accountability.

In the Sultanate of Oman, the MTCIT considers the international frameworks and standards in its governance framework, including COBIT (Control Objectives for Information and Related Technologies), ITIL (Information Technology Infrastructure Library), ISO/IEC 38500 (Enterprise IT Governance), and the NIST Cybersecurity Framework of cybersecurity. Furthermore, the Ministry has been able to facilitate IT governance through the creation of digital governance councils and committees within the Ministry, policy and standards of cybersecurity, the implementation of an ERP and business intelligence system to track performance, and the development of a technical project management system to maintain quality and economic viability.

Accordingly, the proposed study will explore the connection between IT governance, DFT, and economic sustainability performance on the basis of the IT governance framework within the MTCIT in the Sultanate of Oman. The study was based on the quantitative approach and primary data analysis to evaluate these relationships and estimated the findings through SPSS and Smart-PLS. It was concluded that the DFT and IT governance have a role to play in improving the performance of economic sustainability in the Sultanate of Oman. The theoretical and practical implications of this study on the Sultanate of Oman, especially on the public institutions and the governance sector within the Sultanate of Oman, are that DFT and IT governance should be given significant weight towards improving the performance of the economy in terms of economic sustainability.

2. Theoretical Background

This study aims to explore the connection between IT governance, DFT, and economic sustainability performance. The connection of IT governance with DFT and sustainability performance may be explained with references to two theories, including the resource-based view theory and the stakeholder theory. Together, these theories offer complementary perspectives on how institutional actions shape economic sustainability outcomes. One of the fastest developing fields of research in the last several decades has been the resource-based view (RBV) (Jewer & Van Der Meulen, 2022). Sustainable performance depends primarily on the resources of the organization (Siswanti et al., 2024). Economic sustainability performance is influenced by IT governance and DFT in organizations (C. Wang et al., 2025; Ingale, 2024; Palmieri, 2025). With such unique resources, the organization is able to offer quality services that ensure a high market position well above its competitors (Mijwil et al., 2023). Therefore, the present study proposes that both IT governance and DFT are considered as sources of economic sustainability performance.

The resource-based view (RBV) provides a clear theoretical justification for selecting information technology (IT) governance and digital financial transformation (DFT) as the study’s core variables, as both function as strategic internal resources that enhance organizational efficiency, foster innovation, and promote long-term economic sustainability. In the RBV sense, good IT governance and digital financial transformation a strategic organizational resources and capabilities that could help firms to attain high performance (Dao et al., 2011; Jeffers, 2010; Mata et al., 1995; Pankowska & Pańkowska, 2019). Sound IT governance systems guarantee that technology assets are coordinated with corporate objectives, optimally deployed, and protected, and hence developed into a competency that is of value and difficult to replicate (Almaqtari et al., 2023; Almaqtari, 2024b; Lunardi et al., 2014). Digital finance transformation will facilitate the ability of an organization to handle information, streamline financial operations, and decision-making processes that are the keys to long-term economic sustainability.

According to the resource-based view, IT governance is a strategic, organization-specific resource, as opposed to a mere technical resource. It involves these structures, processes, leadership practices, and decision-making mechanisms by which technology is matched with organizational goals (Almaqtari et al., 2023; Almaqtari, 2024b). The ability is useful in the sense that it will make sure that the digital investments manage to promote strategic objectives, decrease inefficiencies, and improve service delivery (Almaqtari, 2024b; Sarwar et al., 2023; Sengik et al., 2022). It is not common since robust IT governance demands the existence of a well-developed combination of competency, cohesive procedures, interdepartmental coordination, and uniformity of policy implementation in all government entities, which does not occur in all governmental entities. It is also imitable since governance ability is acquired over a period through institutional experience, culture, accumulated know-how, and learning by doing. The factors are also ingrained in the organization and are not easily imitated by other organizations.

Stakeholder theory is an idea that emphasizes the need to align the actions of managers with the interests of the shareholders, thereby attaining the best interests of the organization and the shareholders (Robertsone & Lapiņa, 2023). Based on the stakeholder theory, it is essential to use good IT governance and DFT to enhance control over some of the corporate operations, which the management might abuse (Nguyen & Phan, 2025). This plays a critical role in securing the interests of shareholders and other stakeholders (J. Li & Xu, 2024). The stakeholder theory accentuates the problem of divergence of goals, wherein managers can also consider short-term goals to be of more value than long-term goals of the owners, and this is likely to negatively affect sustainability initiatives (Billi & Bernardo, 2025). One of the major issues with this theory is information asymmetry, wherein managers possess more information about the firm as compared to shareholders, which may make them act on self-interest (Attah et al., 2024). In this regard, it is possible to fill this gap by minimizing the information asymmetry to improve sustainable economic performance (Sarkar et al., 2022). By doing so, the actions of managers are consistent with the long-term objectives of shareholders, which decreases the cost of maintaining such relationships and eventually improves the performance of the firms. This theory presupposes that managers would pay more attention to long-term value creation instead of only short-term profits, which is quite compatible with the sustainability objectives (Hung, 2023). This theory can inform sustainable economic performance by offering a great understanding of the influence of IT governance and DFT. The stakeholder theory also endorses the relationships between ITG, DFT, and economic sustainability by pointing to the fact that organizations are expected by society to satisfy the expectations of important stakeholders, such as investors, regulators, customers, and society, to be sustainable. Efficient IT governance is an indicator of openness, responsibility, and prudent management of technology assets, which earns the trust of the stakeholders (Astudillo et al., 2020; Fattah et al., 2021). Similarly, digital financial transformation enhances the quality of service delivery, financial reporting, and operational efficiencies, and shows sensitivity to stakeholder needs (Arner et al., 2020; Vergara & Agudo, 2021).

Overall, these theories indicate that an organization investing in effective IT governance and embarking on digital transformation is in a better position to meet the demands of the stakeholders, leverage its internal resources, and eventually attain greater economic sustainability. In the Omani context, IT governance and digital financial transformation capabilities are important as they are a part of the Omani Vision 2040. There is a fast rate of digital change in the public sector as part of Oman Vision 2040, but most departments are experiencing issues of fragmented IT architecture, mixed degrees of digital maturity, a lack of IT governance talent, and gaps in the adoption of national ICT policies. This, in turn, makes successful IT governance a very strategic competency that helps government organisations to deal with risks, provide cybersecurity, interoperability, transparency, and citizen-focused digital services. Departments with well-developed IT governance aspects can thus more effectively utilize digital financial transformation programs to eventually lead to higher levels of economic sustainability at the national level.

3. Literature Review and Hypotheses Development

Most of the earlier research has centred on sustainability performance as a holistic notion that involves economic, social, and environmental sustainability (Bocean & Vărzaru, 2023; J. Li & Xu, 2024; Siswanti et al., 2024). However, some studies have disproportionately focused on the environmental and social aspects (Alojail & Khan, 2023; Nguyen & Phan, 2025). It can be noted that the performance of economic sustainability has not been sufficiently critically examined. Traditional financial performance indicators have usually been reduced to conventional economic sustainability performance instead of being thought of as a strategic framework that builds institutional resilience and the capacity to adapt to technological changes (D’Adamo et al., 2022; Hung, 2023; Rosário & Dias, 2022). Many recent works (Billi & Bernardo, 2025; C. Wang et al., 2025; Jalil & Khawaja, 2025; Palmieri, 2025) suggest that a direct contribution to economic sustainability performance can be provided through the support of operational efficiency and innovation, as well as risk management, with the help of DFT and IT governance. Despite these promising insights, this approach is underrepresented in the literature, highlighting a research gap that can be addressed with the help of the current study.

3.1. The Relationship Between IT Governance and Digital Financial Transformation

The IT governance is not merely a regulatory tool; it is a precondition of successfully undertaking the DFT (Ingale, 2024; Spremic, 2017). The IT governance allows optimizing the use of the technologies and increasing the capacity of institutions to adapt, innovate, and expand in a fast-changing digital business world (Priyadarsini & Kumar, 2022). The interconnection between IT governance and DFT has been detailed in many studies (Bianchi et al., 2023; Korachi & Bounabat, 2020; Mulyana et al., 2021; Spremic, 2017). Mulyana et al. (2024) pointed out that IT governance, as a provider of DFT, is to ensure that digital resources are oriented to transformation objectives and increase transparency and accountability in adopting digital projects.

In addition, IT governance connects the DFT to the vision of the institution and adds value (Korachi & Bounabat, 2020; Mulyana, 2025). Bianchi et al. (2023) found that IT governance allows management to assess performance in the digital field with the help of indicators and allows for making a choice on the priorities of investment in technology. The IT governance also offers the means to systematically handle the risks of DFT, including cybersecurity, information loss, and organizational change (Jewer & Van Der Meulen, 2022; Mijwil et al., 2023; Spremic, 2017). On the other hand, Sofyani et al. (2023) emphasized that IT decisions may be made chaotically and ill-considered, making it difficult to assess the return on investment (ROI) of digital projects. In the same context, Vincent et al. (2017) illustrated that there are risks represented by weak control over information security and data privacy, as well as conflict between organizational departments regarding transformation priorities. Based on the preceding discussion, the study posits the following hypothesis:

H1. 

There is a significant and positive relationship between IT governance and digital financial transformation.

3.2. The Relationship Between Digital Financial Transformation and Economic Sustainability Performance

The rapid development in the use of IT across all fields has led to a significant improvement in the performance of the sectors applying this technology (Gomez-Trujillo & Gonzalez-Perez, 2022). DFT is one of the main drivers of modern economic and social transformations and is closely linked to the economy’s ability to achieve sustainability (Guandalini, 2022). Several studies corroborate that DFT contributes to enhancing sustainability performance by increasing operational efficiency within the institution, improving internal workflow, attracting investments, reaching a larger segment of customers, both locally and regionally, and supporting the rapid turnover of funds within the institution (Feroz et al., 2021; Liu et al., 2019; Trevisan et al., 2024; Truong, 2022). Supporting this view, empirical evidence from Oman highlights that the rise of FinTech and the shift toward cashless payment ecosystems—driven by mobile financial applications—advance the nation’s economic diversification and financial-inclusion objectives under Vision 2040 (Al Ghunaimi et al., 2025b). These digital-finance initiatives streamline transactions, enhance liquidity, and stimulate innovation across SMEs, thereby reinforcing overall economic sustainability. El Hilali et al. (2020) emphasized that DFT contributes to reducing transaction costs, improving customer response time, improving operational efficiency, and enhancing service quality, which enhances sustainability performance. Similarly, Martínez-Peláez et al. (2023) have concluded that DFT offers a better insight into customer behaviour and needs, assists in analysing operational performance and risk, and offers immediate reporting, allowing the management to resolve any issues beforehand, make prompt decisions, and track operational activities. Moreover, numerous studies (Guandalini, 2022; Trevisan et al., 2024; Xu et al., 2023) elaborate that DFT enhances economic sustainability performance by enhancing economic efficiency, achieving environmental sustainability, and social empowerment.

On the other hand, L. Li (2022) revealed that DFT has the potential to increase inequality between developed and developing nations. Moreover, the substitution of human labour with intelligent systems results in laying off a significant number of employees, including those in the low-skilled industry (Dhyanasaridewi et al., 2024). Martínez-Peláez et al. (2023) also demonstrated that the greater the dependence on digital systems, the more economies are exposed to cyberattacks and security risks. Several studies have also pointed out the adverse effects of DFT on sustainability performance (Dhyanasaridewi et al., 2024; L. Li, 2022; Xu et al., 2023). They highlighted the lack of expertise and competencies required to accomplish the DFT process. They also indicated some factors that affect digital transformation, including resistance to change and innovation, limited budgets to be spent on this transformation, poor infrastructure, the inability to combine and modernize digital databases, the threat of information security, the necessity to provide customer experience in the usage of digital applications, and the abundance of various digital applications.

Furthermore, the literature indicates that the concept of sustainability performance is built on three interconnected dimensions: economic, social, and environmental (Bocean & Vărzaru, 2023; C. Wang et al., 2025; J. Li & Xu, 2024; Robertsone & Lapiņa, 2023). However, focusing on one of these dimensions in isolation may undermine an organization’s ability to achieve its long-term goals (Siswanti et al., 2024). According to Tumpa et al. (2025), digital transformation has a positive impact on the level of ESG on all three aspects, i.e., environmental, social, and governance, revealing the level of disruption of technology on the application of infrastructure. Chen and Guo (2025) report that digital transformation is a catalyst that enhances the resulting positive effect of green supply chain management on corporate performance. Hung (2023) pointed out that economic sustainability performance is the basic pillar that can help organizations meet their social and environmental responsibilities. Thus, the economic aspect is not a part of overall sustainability, but the basis of survival and existence of an organization within the context of threats and swift shifts (Sarkar et al., 2022).

In this regard, economic sustainability performance is not translated to the exclusion of social and environmental aspects. Instead, it is based on the perception that without a sound economic background, organizations cannot attain a balance between the three dimensions of sustainability. This aligns with the recent literature that considers economic sustainability performance to be a mixture of financial health, risk management, and the capacity to generate long-term value to the organization and its stakeholders (C. Wang et al., 2025; Hung, 2023; Jalil & Khawaja, 2025; Palmieri, 2025). Based on the previous discussion, the following hypothesis can be proposed:

H2. 

There is a significant and positive relationship between digital financial transformation and economic sustainability performance.

3.3. The Relationship Between IT Governance, Digital Financial Transformation, and Economic Sustainability Performance

Considering the pace of technological change and the need to meet the demands of sustainable development, institutions are aiming to incorporate the DFT into operations (Mulyana et al., 2024). Nonetheless, it is possible to note that the success of this transformation depends on the strong IT governance (Korachi & Bounabat, 2020). The final aim of the integration is to reach the performance of economic sustainability that is efficient, fair, and environmentally sustainable (Hung, 2023; Sarkar et al., 2022). Prior literature (e.g., Chuang & Huang, 2018; Park et al., 2022; Rosário & Dias, 2022; Siswanti et al., 2024) has revealed that the correlation between the DFT, IT governance, and the performance of economic sustainability is not linear, but rather complementary and intertwined. To improve this relationship, it is necessary to have a strong governance framework, strategic vision, and adaptability to technology so that the economic growth is realized in the long term with fairness, efficiency, and sustainability (Hamdan et al., 2019).

Joshi et al. (2022) supported the fact that the sustainability performance of institutions with IT governance mechanisms improved during the implementation of IT governance mechanisms, in contrast to that of institutions that did not implement the mechanisms. IT governance facilitates the responsible and transparent utilization of the technology, where there is a long-term economic payoff (Anthony, 2018). Moreover, IT governance eliminates wastage, corruption, increases efficiency in spending, and ensures that IT-related decisions are in tandem with the Sustainable Development Goals (Chuang & Huang, 2018). At the same time, IT governance ensures that DFT efforts are disciplined and strategically directed (Almaqtari, 2024b). IT governance establishes clear performance indicators for evaluating transformation projects (Wilkin & Chenhall, 2020). In tandem with this, Feroz et al. (2021) concluded that DFT can improve operational efficiency and reduce costs, which supports environmental sustainability. Moreover, DFT promotes social justice through digital inclusion and flexible work opportunities (Alojail & Khan, 2023; Truong, 2022).

Simultaneously, previous studies have addressed economic sustainability performance from multiple perspectives. Some have focused on long-term financial performance through operational efficiency and investment attraction (J. Li & Xu, 2024; Rosário & Dias, 2022). Others have expanded the concept to include an organization’s resilience in the face of technological change and its ability to adapt to DFTs as a condition for enhancing its sustainability (D’Adamo et al., 2022; Hung, 2023; Palmieri, 2025). Despite these contributions, the literature reveals a persistent gap in understanding the critical link between economic sustainability performance and the roles of IT governance and DFT. Accordingly, this study seeks to fill a gap in the literature by analysing the mediating role of DFT in strengthening the relationship between IT governance and achieving economic sustainability performance, thus contributing to enriching academic debate in this field and responding to the contemporary challenges facing organizations. Therefore, the following hypothesis can be proposed:

H3. 

Digital financial transformation mediates the relationship between IT governance and economic sustainability performance.

4. Methodology

4.1. Research Design

This study adopted a quantitative approach to investigate the relationship between IT governance, DFT, and economic sustainability performance in the Sultanate of Oman. IT governance constitutes the independent variable in this study and is operationalised through four dimensions. Furthermore, the dependent variable of this study is sustainable economic performance, measured through six dimensions. DFT represents the mediating variable and is expressed through four dimensions. Oman Vision 2040 expects IT governance and DFT to contribute to sustainable economic performance. Accordingly, the study hypothesizes that IT governance, with its regulatory frameworks and internal controls, combined with DFT as a strategic resource, can together contribute to sustainable economic performance. This is consistent with the objectives of Oman Vision 2040, which emphasizes strengthening governance, DFT, and economic sustainability performance as fundamental pillars of national development. Figure 1 illustrates the research framework that explains the relationship between the study variables.

4.2. Measurements and Operation Definitions of the Variables

The present research investigates the impact of DFT, IT governance on economic sustainability. IT governance has been considered as the independent variables that affect economic sustainability; however, DFT is treated as a mediator that affects the relationship between IT governance and economic sustainability performance.

IT governance is a very important factor in order to make sure that the investments and digital efforts of technology are aligned with the strategic goals of an organization, its risk practices, and overall performance expectations (Astudillo et al., 2020; Fattah et al., 2021). Good IT governance offers a set of accountability, decision rights, and control systems that help in providing a structured approach to how technology may be handled and used within the institution (Almaqtari, 2024a). IT governance improves transparency, information integrity, and cybersecurity threats in the financial sector, including facilitating compliance with regulatory requirements (Almaqtari et al., 2023; Almaqtari, 2024b; Medaglia et al., 2022). In this paper, IT governance is positioned as an enabling tool that makes the digital transformation initiatives deliver a tangible organizational value. The IT governance can enhance the efficiency and reliability of digital financial systems by creating uniform governance mechanisms, integrated processes, and sustained practices of monitoring, and therefore contributing to enhanced operational efficiency, financial resilience, and long-term viability. Thus, IT governance is measured using synthesized statements that emphasize regular compliance reviews and agreement with national IT governance policies; the IT governance framework of the MTCIT. IT governance measurements were synthesized from (Ali et al., 2015; Ali & Green, 2012; Alreemy et al., 2016; Castelo-Branco et al., 2022; Ferguson et al., 2013).

In the same context, DFT is a strategic direction of introducing advanced digital technologies in the operations, services, and decision-making of financial institutions (Almaqtari, 2024b). Some of the tools used in this transformation include artificial intelligence, blockchain, data analytics, and mobile financial platforms, which can be used to increase the efficiency of operations, customer experience and create tighter and more data-driven financial management (Al Shanti & Elessa, 2023; Mavlutova et al., 2022; J. Wang, 2021; Y. Wang & Wen, 2024). Within the framework of the current research, the digital financial transformation is viewed as a force that is triggering the enhancement and empowerment of organizational functions in the sense of a higher level of automation, quicker information exchange, and enhanced analytical capacity, which can strengthen financial operations and make them more adaptable. With the integration of digitalization into the fundamental financial processes, this enables institutions to create a base in which sustainability in performance and responsiveness to the market changes will be increased, ultimately contributing to sustainability in operational processes and competitive strength. Further, digital transformation measures include investing in new technologies, modernizing digital infrastructure, connecting digital initiatives with the Oman Vision 2040, and setting up budgets to use modern digital tools. Digital transformation items were sourced from (Almaqtari, 2024a; Barroso & Laborda, 2022; Mavlutova et al., 2022; Papathomas & Konteos, 2024; Y. Wang & Wen, 2024).

The construct of economic sustainability in this study is operationalized on the basis of measurement items that highlight the improvements in operational efficiency, like cost reduction, cost savings, and improved resource utilization. Other studies have quantified economic sustainability in terms of some micro-level financial variables. For instance, Akter et al. (2018) measured economic sustainability using community investments, whereas Zahid et al. (2021) measured economic sustainability by including financial performance, Almaqtari (2024a) used economic performance as one of the components of economic sustainability, and Varriale et al. (2020) relied specifically on the reduction in costs as an economic sustainability indicator. In line with these methods, economic sustainability in our study is measured by items that are cost-related, including cost-reduced operating costs and cost efficiency, which show how the organization retains its financial stability in the long run due to constant enhancement of its efficiency. Although the broader literature tends to conceive the concept of economic sustainability as the financial capacity to remain financially steady and the ability to be able to maintain its performance over time, previous empirical research has taken an efficiency-based approach (Almaqtari, 2024a; Zahid et al., 2021) to the concept of economic sustainability, acknowledging that the foundational layer of sustainable economic performance at the organizational level is operational efficiency. Based on this, our application of efficiency-related items is an interpretation of efficiency at the micro-level of the organization, in which increased cost management and operational efficiency will lead to the economic stability of the institution in the long run. In order to prevent theoretical confusion, we define economic sustainability as the sustainable economic basis created by constant efficiency gains in the context of our research, as opposed to the broader macroeconomic concept that is usually applied to economic research. Thus, economic sustainability was measured based on some studies (Akter et al., 2018; Almaqtari, 2024a; Varriale et al., 2020; Zahid et al., 2021).

Table 1. Variable measurements.

Construct	Items	Synthesized Literature Review
ITG	ITG1: Our organization has comprehensive IT policies and standards.	(Ali & Green, 2012; Ali et al., 2015; Alreemy et al., 2016; Castelo-Branco et al., 2022; Ferguson et al., 2013)
	ITG2: Our organization has a clear framework for implementing IT governance.
	ITG3: Periodic reviews are conducted to ensure compliance with IT regulations.
	ITG4: Our organization’s IT governance framework aligns with the IT governance framework of the MTCIT.
GIDT	GIDT1: Our IT initiatives support our organization’s digital transformation for sustainability objectives.	(Almaqtari, 2024a; Barroso & Laborda, 2022; Mavlutova et al., 2022; Papathomas & Konteos, 2024; Y. Wang & Wen, 2024)
	GIDT2: Our organization invests in emerging technologies to enhance IT infrastructure.
	GIDT3: Our organization actively adopts advanced digital technologies (e.g., cloud computing, AI, big data) to improve operations.
	GIDT4: Digital transformation has automated routine tasks and improved service delivery speed.
ECOSUS	ECOSUS1: Our digital initiatives contribute to the growth of the digital economy.	(Akter et al., 2018; Almaqtari, 2024a; Zheng et al., 2021)
	ECOSUS2: Investments in digital technologies have improved our competitiveness in the market.
	ECOSUS3: Digital transformation has opened new sources of income for our organization.
	ECOSUS4: Digital solutions have reduced the operating costs of delivering services.
	ECOSUS5: Automation has led to significant cost savings.
	ECOSUS6: The adoption of IT has improved operational processes, leading to cost efficiency.

Notes: ITG indicates IT governance, GIDT is digital financial transformation, and ECOSUS is economic sustainability performance.

below provides the measurements of the variables of the study.

4.3. Data Collection

The present study uses a structured questionnaire survey as the main instrument to collect data. The statements used in this research are based on a synthesized literature review. It had three primary dimensions: IT governance, DFT, and economic sustainability performance. The questionnaire was designed in a manner that would enable the researcher to not only capture demographic data but also the responses to the questions that would serve the major constructs of the study. In particular, four items measured IT governance and DFT, and six items measured economic sustainability performance (see Table 1). Several procedures were performed to test both validity and reliability to make the instrument robust. Expert review was used to determine face validity: the instrument was reviewed by three academic colleagues who had specialized in accounting, finance, and information systems, and confirmed that it was clear, relevant, and sufficient to capture the constructs. Internal consistency measures and test-retest procedures were used to determine reliability, and they revealed that the responses were stable over time.

The questionnaire was distributed through Google Forms, which helped to distribute it widely and efficiently. Invitations to the survey were sent via email and professional social platforms in order to reach the target respondents within organizations in Oman. The approach was chosen due to its affordability, availability, and capability to receive the responses of a geographically spread sample in a relatively short period of time. Online administration also promoted convenience among the participants and increased response rates among the busy professionals. The governmental structures and agencies that offer services to both individuals and corporations were included in the data collection, as they are an important part of Oman’s digital financial base. They enable secure access and payment of public services online, and therefore, they are of great relevance in exploring the interaction between IT governance, DFT, and sustainability performance.

4.4. Sampling

The sample population comprises commercial, industrial, and service organizations in the Sultanate of Oman. The availability of organizations within these three industries offers congruence to the research aims that deal with economic sustainability performance. Since each sector also has a different contribution to the economic transformation in Oman, a cross-sectoral sample will enable the capture of specific sector dynamics and meaningful comparisons across industries. In addition, the strategy bridges a knowledge gap in the current literature, which has tended to lean too closely towards banking or single-industry contexts, and, therefore, towards a narrow vision of digital and sustainability practices within new economies. Access to these sector organizations and sufficient feasibility of data collection and reliability were achieved through professional networks, cooperation in the industry, and academic cooperation. The study could gather information on the first-hand experience of professionals working on IT governance and digital transformation initiatives by addressing IT managers and finance officers of these institutions.

The study used a non-probability sample that included both convenience and snowball sampling. The use of a non-probability sample in social research has various advantages, including time and resource savings, ease of implementation, increased search, selection flexibility, and low cost. Convenience sampling was chosen based on the availability of persons or institutions, but concerns must be raised about its ability to adequately reflect the general population. Snowball sampling was used to collect data by establishing personal and professional connections among individuals in the target group. The questionnaire was made available electronically to the intended respondents via links, allowing them to participate easily. Data were collected through Google Forms, automatically receiving answers and organizing them in electronic databases. The size of the sample collected for the current study was 104. This sample size satisfies the statistical adequacy for PLS-SEM models, following the rule of ten observations per indicator as recommended by J. F. Hair et al. (2017), and is consistent with similar research applying Smart-PLS in digital transformation contexts (Ali & Green, 2012; Ali et al., 2015).

A priori power analysis was performed using G*Power (version 3.1.9.7) to make sure that the study possesses adequate power. A sample size of 90 respondents was determined after taking into account input parameters with a given α, power, and effect size. The significance level of alpha = 0.01, the desired power level of 0.80, and three predictor constructs. The sample size of 104 respondents is above this value, and it confirms that the study is well-powered to identify the hypothesized relationships. This provides the stability of the findings and gives more credence to the statistical data and the practical applicability of the model.

4.5. Statistical Tools and Analysis

In this study, the research design adopted was a quantitative research design with a descriptive and inferential statistical analysis. The data were analysed using two software packages, SPSS (version 26) and SmartPLS (version 4). Preliminary statistical analyses, including descriptive statistics, reliability tests, and diagnostic tests, were conducted using SPSS, whereas advanced structural equation modelling (SEM) was conducted using smartPLS, which is specifically appropriate when testing complex relationships among latent constructs. The method of analysis consisted of a series of steps. First, some diagnostic analyses were done to test the sufficiency of the dataset to be tested statistically. This involved normality checks, outlier detection, and evaluation of sampling adequacy. The following measures ensured that the data met the assumptions that were to be used in future analyses.

Partial least squares structural equation modelling (PLS-SEM) was used in this study due to the fact that it is specifically suited to complex models that include the mediating relationships (J. F. Hair et al., 2017), like the one that is suggested between IT governance, digital financial transformation, and economic sustainability. PLS-SEM is highly capable in small to medium-sized samples (Sofyani et al., 2020; Sun et al., 2022), and it does not have to be assumed that the data are highly normative, so it is suitable for survey data in developing countries, such as the Omani public sector. Also, PLS-SEM can be used to evaluate both the measurement model (reliability and validity) and structural model (relationships hypothesized by the researcher) simultaneously and thus can give a complete analysis of theoretical and practical relationships in the research (Jermsittiparsert, 2020; Sofyani et al., 2020; Sun et al., 2022).

Second, the measurement model was validated by confirmatory factor analysis (CFA). To determine the factor structure of the constructs, CFA was applied to ensure that the measured variables were reliable measurements of the latent variables of interest (IT governance, DFT, and economic sustainability performance). The convergent and discriminant validity, and internal consistency reliability were considered in the analysis. Third, overall model fit and statistical soundness of the measurement model were evaluated, based on commonly accepted thresholds in the SEM literature. This gave reason to believe that the measurement scales were suitable and stable to continue with the analysis.

Fourth, structural equation modelling (SEM) was used to examine the hypothesized causes along with the hypothesized effects of IT governance, DFT, and economic sustainability performance. SEM enabled the estimation of a set of dependent relationships at the same time and provided an exhaustive test of the theoretical framework. Lastly, path analysis was conducted within the SEM framework to investigate the actual impacts of technological variables on the dimensions of sustainability performance. This move brought a subtle insight into how IT governance and DFT affect economic sustainability performance within the Omani environment.

4.6. Measurement Model

Table 2. Measurement model—confirmatory factor analysis.

Variables	Factor Loading			CA	rho_A	CR	AVE
	1	2	3
ITG1	0.861			0.900	0.903	0.901	0.694
ITG2	0.875
ITG3	0.825
ITG4	0.768
GIDT1		0.851		0.920	0.920	0.920	0.742
GIDT2		0.867
GIDT3		0.846
GIDT4		0.882
ECOSUS1			0.893	0.953	0.953	0.953	0.770
ECOSUS2			0.907
ECOSUS3			0.851
ECOSUS4			0.882
ECOSUS5			0.822
ECOSUS6			0.907

Notes: 1 indicates IT Governance (ITG), 2 is digital financial transformation (GIDT), and 3 is economic sustainability performance (ECOSUS). CA is Cronbach’s alpha, CA is composite reliability, and AVE is average variance extracted, consistent with J. F. Hair et al. (2017) and Fornell and Larcker (1981).

presents the results of the confirmatory factor analysis (CFA), including factor loadings, reliability measures, and internal consistency. The table is divided into three variables: IT governance (statements ITG1 to ITG4), digital financial transformation (GIDT5 to GIDT8), and economic sustainability performance (ECOSUS9 to ECOSUS14). The table shows that IT governance has high reliability, with factor loadings above the acceptable limit (0.70), and DFT has good reliability, with high internal consistency and a high variance explained by economic sustainability performance (see Figure 2). The table concludes that the confirmed factor model is robust and reliable, with high values for CA, CR, and rho_A, and AVE in all dimensions greater than 0.50, indicating good convergent validity. The differentiation between dimensions and the visualization of the results can be used to interpret the results.

The Fornell–Larcker criterion in

Table 3. Measurement model—discriminant validity.

Fornell-Larcker Criterion
Variables	GIDT	ECOSUS	ITG
GIDT	0.862
ECOSUS	0.855	0.878
ITG	0.780	0.699	0.833

Notes: ITG indicates IT governance, GIDT is digital financial transformation, and ECOSUS is economic sustainability performance.

states that the square roots of AVE must be greater than the corresponding values in other columns and rows of each dimension, indicating that the constructs explain more variance than their relationship to other dimensions. The results indicate that IT governance (0.862) has a stronger relationship with DFT and economic sustainability performance (0.855 and 0.780, respectively). Furthermore, DFT (0.878) exhibits a stronger relationship with IT governance and economic sustainability performance (0.855 and 0.699), while economic sustainability performance (0.833) shows a more significant connection with IT governance and DFT.

5. Results and Discussion

5.1. Path Analysis

The results in

Table 4. Structural equation modelling.

Path	β	STDEV	T Stat	p Values
Direct Effect
Digital Financial Transformation -> Economic Sustainability performance	0.792	0.124	6.376	0.000
IT Governance -> Digital Financial Transformation	0.780	0.064	12.267	0.000
IT Governance -> Economic Sustainability performance	0.081	0.135	0.596	0.552
Indirect Effect
IT Governance -> Digital Financial Transformation -> Economic Sustainability performance	0.618	0.118	5.236	0.000

provide estimates from the structural model. The results show that DFT has a significant and positive effect on economic sustainability performance (β = 0.792, p < 0.0), confirming previous findings that link digital transformation with improved financial efficiency and performance (Feroz et al., 2021; Liu et al., 2019; Trevisan et al., 2024; Truong, 2022). This finding suggests that government organisations adopting DFT solutions reduce operational costs and achieve stronger economic sustainability outcomes. This is more likely due to the fact that they reduce their labour cost, time, and supplies needed to complete the transactions. DFT is a key driver of economic sustainability performance, utilizing modern technologies like digital banking, fintech, blockchain, and AI. It enhances efficiency, reduces costs, promotes financial inclusion, and supports transparency, good governance, and efficient resource use. Digital systems also create new job opportunities and can quickly respond to crises like the COVID-19 pandemic, ensuring long-term economic stability. This finding is consistent with previous studies indicating that DFT within organizations leads to enhanced sustainable economic performance due to the strategic role of this transformation and its impact on sustainable performance (Alojail & Khan, 2023; Attah et al., 2024; Hung, 2023; Robertsone & Lapiņa, 2023).

It is also found that IT governance positively and significantly influences DFT (β = 0.780, p < 0.0). IT governance is a very important design in an organization, which controls IT decisions so that the use of technology is synchronized with the strategic goals. It has a direct influence on DFT that increases strategy alignment, risk management, enhances decision-making, optimizes resources, and promotes transparency. IT governance links DFT tasks to financial objectives, recognizes and evaluates technology risks, controls are put in place to eliminate project failures, and resources are efficiently used to ensure the greatest project benefit and the least waste and duplication. These findings are consistent with previous studies that support the positive impact of IT governance on DFT (Ingale, 2024; Jewer & Van Der Meulen, 2022; Mijwil et al., 2023; Mulyana, 2025). This is also supported by resource-based view theory and stakeholder theory, which indicate the importance of organizations having strategic resources to protect the interests of shareholders and other stakeholders.

The results also indicate that IT governance has an insignificant impact on economic sustainability performance (β = 0.081, p > 0.05). Although the relationship is positive, it remains statistically insignificant. This finding implies that the economic benefits do not necessarily come with the provision of sound IT governance mechanisms, which include policies, controls, and checks and balances (Almaqtari, 2024b; Almaqtari et al., 2023; Medaglia et al., 2022). Governance is the basis in the context of the public sector; the reality of digital financial transformation is what triggers and makes this foundation translate into quantifiable economic value; that is, change is key or the lever that transforms institutional capabilities into enhanced efficiency and cost-saving, as well as long-term sustainability results. This brings up a crucial policy implication: government entities are not to be confined to the governance frameworks only, but invest in and focus on the meaningful digital transformation processes to deliver the economic benefits articulated in the context of national digital strategies.

This suggests that current IT governance practices have yet to form a clear and measurable link with economic sustainability outcomes. It also reveals that core governance mechanisms—such as steering committees and strategic oversight embedded within MTCIT’s IT governance framework—are only partially institutionalized across government entities, which restricts the full realization of digital financial transformation benefits. The IT governance framework established by the Ministry comprehensively covers technology adoption, digital financial transformation, and other governance dimensions; however, its direct influence on cost efficiency and economic sustainability performance has not yet materialized as expected. This situation points to the need for stronger alignment and coordination among government bodies, including MTCIT, to ensure consistent application of the framework and to enhance its contribution to overall economic sustainability. The results further show that while the Ministry’s governance framework has a significant positive effect on digital financial transformation, it still does not translate into notable improvements in cost efficiency or broader economic performance. These findings emphasize the importance of reinforcing inter-agency collaboration, advancing digitalization initiatives, and improving IT-related capabilities across the public sector. Finally, it remains essential to raise awareness of the strategic importance of IT governance and its integrated dimensions within the Ministry’s framework among all government authorities.

More importantly, the results of the indirect effect show that economic sustainability performance is enhanced by IT governance through the mediating effect of DFT. As shown in the results of the analysis, the relationship between IT governance and economic sustainability is mediated completely by the digital financial transformation (DFT). According to this finding, IT governance in itself is not directly useful in improving economic sustainability, but the effect is conveyed fully via the implementation of digital financial transformation programs. That is, DFT is the key system that transforms the capabilities of governance into concrete economic value, which serves as a reminder of the necessity to focus on transformation endeavors along with the governance institutions.

These results are consistent with some previous studies (Billi & Bernardo, 2025; Jalil & Khawaja, 2025; J. Li & Xu, 2024; Palmieri, 2025). However, they differ from the study (Nguyen & Phan, 2025), which indicated that DFT and IT governance do not have a direct impact on sustainable organizational performance. This means that the IT governance made by The MTCIT has effectively and significantly enhanced the digitalization of financial transformation, which in turn led to the enhancement of sustainability performance. Figure 3 shows the structural model.

5.2. Importance Performance Mapping

We used importance-performance map analysis (IPMA) with SmartPLS to further analyse our PLS-SEM findings. In contrast to traditional analysis, which only evaluates the significance (i.e., overall effect) of the predictor constructs, IPMA also evaluates the performance of the constructs by rescaling the latent variable scores to 0–100. This two-dimensional perspective enables practitioners to successfully prioritize the constructs that have high priority but perform poorly, and target specific managerial or policy action (Ringle & Sarstedt, 2016). According to Ringle and Sarstedt (2016), the power of IPMA is that it assists researchers to better understand their PLS-SEM outcome by integrating both importance and performance dimensions in a more elaborate assessment.

Figure 4 shows the importance-performance mapping. The results in the figure demonstrate that DFT is superior to IT governance in terms of its effect on economic sustainability performance. The y-axis is economic sustainability performance. However, the values in the x-axis represent both DFT and IT governance.

5.3. Sensitivity Analysis (Bootstrapping)

Table 5. Sensitivity analysis (bootstrapping).

Path	β	STDEV	T Stat	p Values
Direct Effect
Digital Financial Transformation -> Economic Sustainability	0.688	0.092	7.494	0.000
IT Governance -> Digital Financial Transformation	0.711	0.068	10.449	0.000
IT Governance -> Economic Sustainability	0.159	0.095	1.676	0.094
Indirect Effect
IT Governance -> Digital Financial Transformation -> Economic Sustainability	0.489	0.083	5.899	0.000

provides a robust analysis using bootstrapping to check the robustness and reliability of our model estimates. A full bootstrapping process (resampling 5000 times) was conducted. Bootstrapping has been generally considered an alternative method of estimating the statistical significance of path coefficients and factor loadings, particularly where distributional assumptions are not specified (J. F. Hair, 2014). J. F. Hair et al. (2017) suggest that the bias-corrected and accelerated bootstrap approach accounts for biases and skewness in the data and therefore should be employed when the data deviate from normality. J. Hair and Alamer (2022) also indicate that bootstrapping is useful to assess the stability and significance of parameters in PLS-SEM-based models: 5000 or more bootstrap samples are generally advised to make reliable inferences. Overall, the bootstrapping results were quite consistent with our main results in Table 4. The results in Table 5 and Figure 5 show that the direct and indirect impact of DFT on economic sustainability remains statistically significant (p < 0.05). Similarly, the path of IT governance on DFT retains its statistical significance (p < 0.05). Finally, the impact of IT governance on economic sustainability remains statistically insignificant (p > 0.05).

While the results provide empirical validation of the proposed framework, the study is limited by its sample size and exclusive focus on Omani public institutions. Future research should broaden the analysis to include private-sector entities and comparative regional data to enhance generalizability and confirm cross-sector applicability (Ali & Green, 2012; Ali et al., 2015; Alreemy et al., 2016).

6. Discussion and Policy Implications

The findings of the present study reveal that IT governance does not directly impact the performance of economic sustainability. This implies that it is not adequate to simply put up governance structures, policies, and oversight mechanisms to realize real economic benefits. Rather, IT governance needs to be supplemented with efficient digital financial transformation (DFT), which is the primary mechanism that converts the governance capabilities into quantifiable financial results (Almaqtari, 2024a, 2024b; De Haes & Van Grembergen, 2005). That indicates that governance gives the structure, and that transformation is the tool that triggers value creation. Further, the low direct influence of IT governance on the Omani public institutions could be a result of partial adoption of the governance systems, the different degrees of digital maturity, disjointed procedures in the departments, and insufficient awareness or training on the national IT governance systems. This outlines the necessity of operationalising governance frameworks and making them very much in line with digital transformation processes.

Policy-wise, these results highlight the fact that investments in governance are insufficient. A policymaker must make sure that DFT is adopted as part of the IT governance systems and not as a standalone measure. The key aspects of the digital process automation, the interdepartmental data sharing, and the adherence to the IT risk management policies should be considered by the public sector institutions in terms of integrating the processes of governance and transformation (Almaqtari, 2024a; Almaqtari et al., 2023; Arner et al., 2020; Battisti et al., 2023).

It is also important to increase the level of awareness and knowledge about the national IT governance framework that has been propagated by the Ministry of Transport, Communications, and Information Technology (MTCIT). Specific programs, development, and capacity-building activities can effectively improve governance awareness in employees and managers, which will maintain the effective and consistent use of governance standards.

Lastly, the policymakers ought to put up monitoring and evaluation systems to determine the implementation and effectiveness of IT governance and digital transformation programs. Connections between governance awareness and transformation practices, and performance outcomes will ensure a continuous feedback mechanism, enhance accountability, and make evidence-based decisions, which can eventually lead to sustainable economic results in the public sector.

7. Conclusions

The main aim of this study was to investigate how digital financial transformation mediates the relationship between IT governance and economic sustainability performance. A questionnaire survey was the research tool utilized in this investigation. The data were gathered from several Omani government agencies. Convenience and snowball sampling were employed in the study to gather data. The findings show that digital financial transformation is significantly improved by IT governance. Furthermore, the degree of economic sustainability performance has been successfully and significantly raised by the digital financial transformation. However, through the mediating role of digital financial transformation, IT governance has an indirect impact on economic sustainability performance rather than a direct one.

This research contributes in a number of ways to theory. The study responds to the scant literature on how IT governance is related to digital financial transformation in the Arab and Gulf environment, and Oman, in particular. It forms the theoretical framework that connects these concepts to sustainable economic performance and presents the empirical evidence of the trends in digital financial transformation and sustainability. The results are valuable to the academic community as they highlight the significance of the involvement of IT governance and digital financial transformation in the national developmental frameworks, which is essential to the emerging and developing economies. Notably, the paper builds on the resource-based view (RBV) and stakeholder theory by conducting an empirical study on the combined effect of IT governance and digital financial transformation on economic sustainability, specifically in the context of Gulf countries, where the impact of empirical studies is scarce. The paper also gives evidence that digital financial transformation completely mediates the relationship between IT governance and economic sustainability. Moreover, the study also adds to the growing body of literature on the subject of digitalization in the public domain by relating the concepts of governance and transformation to a consistent theoretical framework, which will help provide a more subtle insight into the forces behind the successful implementation of digital processes. Methodologically, the proposed research adheres to the multidimensional approach of measurement, as it operationalizes the notions of IT governance, digital financial transformation, and economic sustainability with valid scales. The PLS-SEM approach will enable the simultaneous evaluation of measurement and structural models, and complex mediating relationships are viable due to relatively small sample sizes. The research also uses importance-performance map analysis (IPMA) to offer practical suggestions about areas that the management needs to act upon using statistical findings and connecting them to the recommendations that can be taken.

On the other hand, the study findings are expected to provide added value to decision-makers and executives in Omani organizations. The results highlight how implementing IT governance principles contributes to enhancing the efficient use of digital resources and reducing associated risks. In the context of digital financial transformation, the current study provides policymakers and practitioners with valuable and crucial insights to improve awareness and integration of governance across several areas. The study findings provide practical recommendations that policymakers can use to develop regulatory frameworks that support digital financial transformation and IT governance, thereby enhancing Oman’s sustainable economic performance in the long term.

According to the importance-performance map analysis (IPMA), this paper offers a number of specific management suggestions on how to enhance economic sustainability as the function of digital financial transformation and IT governance. The IPMA findings show that digital financial transformation has significant value and good performance, thus it is an essential area that needs strategic focus by the government institutions. In this connection, policymakers will need to focus on the initiatives that will expedite the automation of processes within the company, increase the data movement among the departments, and improve the digital skills of employees through ongoing training. Equally, the key IT governance elements that exhibit significance but lower performance than digital financial transformation ought to be reinforced to ensure that the governance structures are responsive to the digital transformation initiatives. Managing and channeling the attention of management towards these high-priority areas will help the public institutions to take advantage of their technological and organizational potentials, and this would eventually increase the economic sustainability results. Importantly, despite that digital financial transformation exhibits high importance, focusing on digital financial transformation in isolation, without effective IT governance, will lead to inefficient economic sustainability. This means that the advantages of digital financial transformation with sound IT governance cannot be fully attained. Ignoring IT governance not only hinders the efficiency and sustainability of transformation efforts but may also expose institutions to operational, financial, and technological risks that ultimately undermine economic sustainability. Accordingly, government entities should promote the awareness IT governance framework that was developed by “the Ministry of Transport, Communications, and Information Technology” in Oman. The limited awareness and inconsistent implementation among government entities could affect the level of economic sustainability.

8. Limitations and Future Research Directions

Although this study has contributed to a change, it has certain limitations that may be taken into account. First, the study depended on the results of surveys, and all the variables of interest were assessed as self-reported questionnaires, which, possibly, would not fully reflect IT governance, digital financial transformation, or economic sustainability. Second, the sample was collected via convenience and snowball sampling, even though it was adequate to carry out PLS-SEM analysis, so the results might not be generalized to the respondents outside the sample. Third, the model did not include control variables and thus could leave out other contextual or organizational factors that would have an impact on the outcomes. These limitations can be resolved by future studies through larger and more representative samples, longitudinal or mixed-method designs, the inclusion of more mediating or moderating variables, and a combination of survey data and archival data or performance data to give a more comprehensive view of the mechanisms by which IT governance and digital financial transformation contribute to economic sustainability.