THE IMPACT OF ORGANIZATIONAL TRANSFORMATION ON BUSINESS PERFORMANCE THROUGH INNOVATION, FINANCIAL TECHNOLOGY, DIGITAL MARKETING, AND GOVERNMENT REGULATION: EVIDENCE FROM BANK BNCTL TIMOR LESTE

Abstract

The purpose of this study is to examine and analyze the effect of Organizational Transformation on Business Performance through Innovation, Financial Technology, Digital Marketing, and Government Regulation at Bank BNCTL Timor-Leste. This research applied a causal explanatory quantitative approach with purposive sampling. The population consisted of 250 customers, and 154 valid responses were collected. Data were analyzed using Structural Equation Modeling (SEM) with Partial Least Squares (PLS). The findings show that Organizational Transformation has a positive and significant effect on Business Performance, Financial Technology, Digital Marketing, and Government Regulation, while its effect on Innovation is also significant but does not contribute positively to performance outcomes. Innovation was found to have a negative and insignificant effect on Business Performance, indicating that service innovation has not been optimally implemented. Conversely, Financial Technology, Digital Marketing, and Government Regulation have positive and significant effects on Business Performance. Furthermore, these three variables significantly mediate the relationship between Organizational Transformation and Business Performance, while Innovation does not serve as a mediator.