A resource-based strategic management in Sharia banks: Examining the association of organizational culture, innovation, and digital transformation

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Type of the article: Research Article

Abstract
Sharia banking institutions in Indonesia have significant growth potential, given that the majority of the population is Muslim. This study aims to analyze the association between organizational culture, innovation, and digital transformation within the context of resource-based strategic management in Sharia banks of East Java. Data were collected from state-owned (6 main and 90 branch offices) and private (3 main and 66 branch offices) Sharia banks in East Java during January and February 2026, after these Sharia banks completed their annual financial reports. A total of 165 respondents were selected using a purposive sampling method. The selected respondents were secretaries with at least three years of work experience. Data were analyzed using structural equation modeling partial least squares (SEM-PLS). The analysis results show that organizational culture has a positive and significant relationship with resource-based strategic management (path coefficient = 0.450; t = 8.640; p < 0.001). Innovation also has a positive and significant relationship with resource-based strategic management (path coefficient = 0.305; t = 5.742; p < 0.001). Similarly, digital transformation has a positive and significant relationship with resource-based strategic management (path coefficient = 0.349; t = 6.183; p < 0.001). These findings indicate that organizational culture, innovation, and digital transformation are positively related to resource-based strategic management in Sharia banks of East Java.

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    • Figure 1. Bootstrapping result
    • Table 1. Convergent validity
    • Table 2. AVE testing
    • Table 3. Discriminant validity testing using HTMT
    • Table 4. Reliability testing
    • Table 5. Multicollinearity
    • Table 6. Effect size
    • Table 7. Coefficient of determination
    • Table 8.Q-squared test
    • Table 9. Hypotheses testing
    • Conceptualization
      Halid Hasan, Farika Nikmah
    • Data curation
      Halid Hasan, Farika Nikmah
    • Formal Analysis
      Halid Hasan, Farika Nikmah, Sri Wilujeng
    • Funding acquisition
      Halid Hasan
    • Investigation
      Halid Hasan, Farika Nikmah, Weni Rosdiana
    • Methodology
      Halid Hasan, Farika Nikmah, Sri Wilujeng
    • Project administration
      Halid Hasan, Farika Nikmah, Weni Rosdiana
    • Resources
      Halid Hasan, Farika Nikmah
    • Supervision
      Halid Hasan
    • Validation
      Halid Hasan, Farika Nikmah, Weni Rosdiana
    • Visualization
      Halid Hasan, Sri Wilujeng
    • Writing – original draft
      Halid Hasan, Farika Nikmah, Weni Rosdiana, Sri Wilujeng
    • Writing – review & editing
      Halid Hasan, Farika Nikmah, Weni Rosdiana
    • Software
      Sri Wilujeng
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Problems and Perspectives in Management
Problems and Perspectives in Management