Digital Transformation and Employee Performance through Job Satisfaction Among Employees of a Sharia Banking Institution in Yogyakarta

Abstract

This study aims to analyze the effect of digital transformation on employee performance among employees of a sharia banking institution operating through several branches in the Yogyakarta area, using job satisfaction as a mediating variable. Sample in this study consisted of 80 employees from five branches of a Sharia banking institution in the Yogyakarta area, selected using a cluster sampling technique. Data was analyzed using Partial Least Squares-based Structural Equation Modeling (SEM-PLS) with SmartPLS 4. The results indicate that digital transformation has a positive and significant effect on employee performance. Furthermore, digital transformation has a positive and significant effect on job satisfaction. Moreover, job satisfaction also has a positive and significant effect on employee performance. The results of the indirect effect analysis indicate that job satisfaction mediates the relationship between digital transformation and employee performance.