Perception of Gen Y and Z on Bank’s Financial Performance: Exploring Managerial Capabilities and Digital Innovation

Abstract

The inception of digitalization has transformed many organizations. Presently, personal and professional lives are difficult to fathom without the utilisation of digital technologies. For organisations, digital innovation has brought up several opportunities. While most of the previous research considered how digital innovation affected worker productivity, and business performance and emphasised the massive deployment of digital technologies, little research has assessed the factors influencing digital innovation. To fill this gap, this study aims to explore the impact of managerial social capital and managerial human capital on digital innovation, and the intervening impact of digital innovation on the connection between firm performance and managerial social capital as well as managerial human capital. To achieve this, 728 bankers in Ghana were conveniently sampled, and the structural equation modelling in the PLS approach was utilized to analyse the data. The results showed that managerial social capital and managerial human capital have a substantial impact on digital innovation. Most significantly, digital innovation emerged as a favourable mediator on the managerial social capital and perceived performance affiliation, and the managerial social capital and expected performance connection. The findings urge managers and policymakers to combine the efforts of managerial social capital and digital innovation to increase the performance of banks as digital innovation has become a necessity in today’s dynamic and digital era.