10th U6+ Consortium of African Universities International Conference

Digital transformation has contributed to significant changes in business processes, and the resulting agility seems to be a critical success factor for competitiveness and innovativeness. When adopting disruptive digital solutions, organizations expect agility to play a significant role. Recently, technological transformations have generated increasing interest, and some research studies have concentrated on the digital opportunities for improving business performance. Other studies have investigated innovations in organizational systems about the acceptance and adoption of new computerized platforms. In contrast, not much research has been conducted on digitalization that broadly enables agility and, more specifically, when it impacts the risk of organizational and strategic rigidity traps with the possibility of business failure. The impact of ICT transformation on organizational performance with a focus on emerging economies has been understudied in scholarly research. In this respect, the current research intends to examine the above-mentioned connection in Kenya. Specifically, the study aims to understand the circumstances in which digital transformation impacts organizational performance and agility as the intervening factor. Agility seems indispensable for survival and growth in current and future environments. Nevertheless, opportunities derive from digitalization, and several risks emerge from the continuous integration of data and activities. The study adopts a cross-sectional survey design targeting senior and middle-level managers from commercial banks operating in Kenya. Data were collected using structured questionnaires and analyzed using structural equation modeling. The findings reveal that digital transformation significantly and positively influences organizational performance, with strategic agility strengthening this relationship. The study contributes to the strategic management literature by demonstrating the importance of agility in achieving long-term organizational success in dynamic environments. The findings offer practical advice to bank managers and policymakers seeking to enhance competitiveness and sustainability within the banking sector.