The Effects of Culture and Work Engagement on Digital Transformation Performance in the Islamic Banking Industry of Kuwait

The Kuwaiti Islamic banks confront entrenched hierarchies which complicate their digital endeavours. The previous studies found inconsistent effects of culture on digital transformation performance (DTP) imply that moderator may exist. To address the research gaps, this study examines the direct effects of cultural variables, and moderating effects of work engagement on DTP. 550 survey questionnaires collected from the staff of Kuwaiti Islamic banks revealed that power distance, uncertainty avoidance, collectivism, and long-term orientation positively influenced DTP, except for masculinity, while indulgence had a negative effect. Additionally, work engagement moderated the effects of uncertainty avoidance, long-term orientation, and indulgence on DTP.