The Impact of Digital Transformation Requirements on the Quality of Banking Services  : From the perspective of commercial bank customers in Libya

Hasan Emran; Salim Alajili; Fathia Elhony

doi:10.55927/eajmr.v5i4.54

Authors

Hasan Emran Fezzan university
Salim Alajili Elmergib University
Fathia Elhony Fezzan university

DOI:

https://doi.org/10.55927/eajmr.v5i4.54

Keywords:

Digital Transformation, Bank, Customers, Quality, Quality of Banking Services

Abstract

This study investigates digital transformation's impact on banking service quality in Libya, a region with limited research. Using survey data from 273 respondents analyzed via AMOS, the findings show that human resource efficiency, security, privacy, and organizational culture significantly influence service quality. However, technological infrastructure and leadership vision have only partial effects. These insights help bank managers and policymakers prioritize the most impactful factors particularly human and cultural elements to improve customer satisfaction. The study also encourages further research in other regions adopting online banking, contributing to a broader understanding of how digital transformation shapes banking services across different contexts.

References

Abbas Shahim. (2021). Security of the digital transformation. Computers & Security, 108, 1–4.

Abdulquadri, A., Mogaji, E., Kieu, T. A., & Nguyen, P. N. (2021). Digital transformation in financial services provision: A Nigerian perspective on the adoption of chatbots. Journal of Enterprising Communities: People and Places in the Global Economy, 15(2), 258–281.

Alayoubi, M. M., Al Shobaki, M. J., & Abu-Naser, S. S. (2020). Strategic leadership practices and their relationship to improving the quality of educational service in Palestinian universities. International Journal of Business Marketing and Management (IJBMM), 5(3), 11–26.

Al-Habil, W. I., et al. (2017). The impact of the quality of banking services on improving the marketing performance of banks in Gaza Governorates from the point of view of their employees. International Journal of Engineering and Information Systems (IJEAIS), 1(7), 197–217.

Anastasiadou, S., & Papalexandris, S. (2023). The effect of sustainable human resource management practices on customer satisfaction, service quality, and institutional performance in hotel businesses. Sustainability, 15, 8251.

Arcand, M., PromTep, S., Brun, I., & Rajaobelina, L. (2017). Mobile banking service quality and customer relationships. International Journal of Bank Marketing, 35(7), 1068–1089.

Awang, Z. (2015). SEM made simple: A gentle approach to learning structural equation modeling. Bandar Baru Bangi, Selangor: MPWS Rich Publication Sdn.

Beavers, A. S., Lounsbury, J. W., Richards, J. K., Huck, S. W., Skolits, G. J., & Esquivel, S. L. (2013). Practical considerations for using exploratory factor analysis in educational research. Practical Assessment, Research & Evaluation, 18(6), 1–13.

Bollen, K. A., & Stine, R. A. (1992). Bootstrapping goodness-of-fit measures in structural equation models. Sociological Methods & Research, 21(2), 205–229.

Casaló, L. V., Flavián, C., & Guinalíu, M. (2007). The role of security, privacy, usability, and reputation in the development of online banking. Online Information Review, 31(5), 583–603.

Chand, M. (2010). The impact of HRM practices on service quality, customer satisfaction, and performance in the Indian hotel industry. The International Journal of Human Resource Management, 21(4), 551–566.

Chin, H., Marasini, D. P., & Lee, D. (2023). Digital transformation trends in service industries. Service Industries Journal, 17, 11–36.

Emran, H. A. A., & Elhony, F. M. (2024). Challenges of employing artificial intelligence in Libyan higher education. International Journal of Science and Research (IJSR), 13(8), 1247–1249.

Emran, H. A., Salem, M. A., & Elhony, F. M. (2025). The Impact of Digital Transformation Strategies on the Quality of Health Services - Field Study. Journal of Educational Analytics, 4(4), 1079–1090.

Emran, H., Salem, M., & Elhony, F. (2025). The Impact of Digital Transformation on the Future of Jobs: Perspectives from Experts in Libyan Telecommunications Companies. Journal of Business, Management, and Social Studies, 5(4), 159-167.

Emran, H.A.A. and Elhony, F.M. (2023), “The implications of digital transformation and its impact on human resource management strategies”, East Asian Journal of Multidisciplinary Research, Vol. 2 No. 4, pp. 1765-1772.

Emran, H.A.A. and Elhony, F.M. (2025), “The Role of Inclusive Leadership in Enhancing Digital Transformation Field Study , East Asian Journal of Multidisciplinary Research, Vol. 4, No. 8, 2025: 4069 – 4078 .

Famiyeh, S., Asante-Darko, D., & Kwarteng, A. (2018). Service quality, customer satisfaction, and loyalty in the banking sector: The moderating role of organizational culture. International Journal of Quality & Reliability Management, 35(8), 1761–1780.

Fred Wali, A. (2013). Information technology infrastructure and customer service delivery. British Journal of Marketing Studies, 1(2), 17–32.

Gong, C., & Ribiere, V. (2021). Developing a unified definition of digital transformation. Technovation, 102, 102–125.

Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2010). Multivariate data analysis: A global perspective (7th ed.). Pearson.

Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2017). A primer on partial least squares structural equation modeling (PLS-SEM) (2nd ed.). SAGE.

Jayaram, J., & Xu, K. (2016). Determinants of quality and efficiency performance in service operations. International Journal of Operations & Production Management, 36(3), 312–334.

Kirnan, L. P., Komaladewi, R., & Oesman, Y. M. (2025). Mobile banking service quality and customer relationship quality in Indonesian Islamic banks: The moderating effect of gender. Economics and Business Journal (ECBIS), 3(3), 297–310.

Li, F., Lu, H., Hou, M., Cui, K., & Darbandi, M. (2021). Customer satisfaction with bank services: The role of cloud services, security, e-learning, and service quality. Technology in Society, 64, 101–114.

Liu, T., Zheng, J., Yang, D., et al. (2025). The influence of digital technology and the transmission capacity of cultural connotations on the digital innovativeness of cultural industry. International Journal of High Speed Electronics Systems, 34, 1–15.

Metz, D., Ilieș, L., & Nistor, R. L. (2020). The impact of organizational culture on customer service effectiveness from a sustainability perspective. Sustainability, 12(15), 1–18.

Osei, L. K., Cherkasova, Y., & Oware, K. M. (2023). Unlocking the full potential of digital transformation in banking: A bibliometric review and emerging trend. Future Business Journal, 9(1), 30.

Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1988). SERVQUAL: A multiple-item scale for measuring consumer perceptions of service quality. Journal of Retailing, 64(1), 12–40.

Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1991). Refinement and reassessment of the SERVQUAL scale. Journal of Retailing, 67(4), 420–450.

Reis, J., Amorim, M., Melao, N., & Cohen, Y. (2020). Digitalization: A literature review and research agenda. In Z. Anisic, B. Lalic, & D. Gracanin (Eds.), Proceedings of the 25th International Joint Conference on Industrial Engineering and Operations Management – IJCIEOM (pp. 443–456). Lecture Notes on Multidisciplinary Industrial Engineering.

Sekaran, U., & Bougie, R. (2016). Research methods for business: A skill-building approach (17th ed.). John Wiley & Sons.

Shanka, M. S. (2012). Bank service quality, customer satisfaction and loyalty in Ethiopian banking sector. Journal of Business Administration and Management Sciences Research, 1(1), 1–9.

Shanti, R., Avianto, W., & Wibowo, W. A. (2022). A systematic review on banking digital transformation. Jurnal Administrare: Jurnal Pemikiran Ilmiah dan Pendidikan Administrasi Perkantoran, 9(2), 543–552.

Silalahi, H., Sitopu, J. W., & Sihite, M. (2024). The effect of service quality, customer experience, and customer satisfaction on customer loyalty in the service industry in Indonesia. Sciences du Nord Economics and Business, 1(2), 109–117.

Taherdoost, H. (2022). Understanding cybersecurity frameworks and information security standards—a review and comprehensive overview. Electronics, 11(14), 2181.

Teng, X., Wu, Z., & Yang, F. (2022). Research on the relationship between digital transformation and performance of SMEs. Sustainability, 14(10), 6012.

Tighza, A. B. (2012). Exploratory and confirmatory factor analysis. Amman, Jordan: Dar Al-Masirah for Publishing, Distribution and Printing.

Ueltschy, L. C., Laroche, M., Eggert, A., & Bindl, U. (2007). Service quality and satisfaction: An international comparison of professional services perceptions. Journal of Services Marketing, 21(6), 410–423.

Vial, G. (2019). Understanding digital transformation: A review and a research agenda. The Journal of Strategic Information Systems, 28(2), 118–144.

Wang, S., Asif, M., Shahzad, M. F., & Ashfaq, M. (2024). Impacts of digitization on operational efficiency in the banking sector: Thematic analysis and research agenda proposal. International Journal of Information Management Data Insights, 4, 1–12.