Article review of “Digital transformation in commercial banks”, focusing on the topic of research approaches: for MBA students

Article review of “Digital transformation in commercial banks”, focusing on the topic of research approaches: for MBA students

 

How to present this article in Harvard reference format?

Felipe, T., Torres de Oliveira, R., Toth-Peter, A., Mathews, S. & Dulleck, U., 2025. Digital transformation in commercial banks: Unraveling the flow of Industry 4.0. Digital Business, 5, p.100129. Available at: https://doi.org/10.1016/j.digbus.2025.100129 [Accessed date].

 

What are the key research issues the article wants to address?

The article aims to address several key research issues related to the digital transformation (DT) of commercial banks within the context of Industry 4.0 technologies:

1.    Strategies Employed by Commercial Banks for Digital Transformation The study investigates the strategies at micro, meso, and macro levels that commercial banks implement to integrate Industry 4.0 technologies. It explores how banks co-create value, ensure security, and promote inclusion at the micro level; adopt agile structures and automation at the meso level; and establish fully digital banks or collaborate for business model innovation at the macro level.

2.    Impact of Industry 4.0 Technologies on Commercial Banking The research examines how fundamental Industry 4.0 technologies such as AI, blockchain, and digital platforms are shaping banking operations, customer experience, and innovation within the sector.

3.    Challenges Faced in Digital Transformation The article identifies barriers to successful digital transformation, including legacy IT systems, regulatory complexities, internal resistance to change, and issues related to customer trust and digital literacy.

4.    Role of Customer Experience and Inclusion Emphasizing customer-centric approaches, the study examines how digital transformation improves customer experience and financial inclusion, focusing on personalization, security in payments, and access to banking for underserved populations.

5.    Methodological Gaps and Future Research Directions The article highlights the predominance of empirical research and suggests avenues for deeper quantitative and qualitative investigations—especially ethnographic and experimental methods—to better understand the dynamics of digital transformation and the evolving business models in banking.

6.    Integration of Theoretical Perspectives The research connects its findings to theories of general-purpose technology and dynamic capabilities, aiming to understand how banks develop the capabilities needed to integrate emerging technologies effectively.

In sum, the article addresses how commercial banks strategically manage digital transformation driven by Industry 4.0 technologies while overcoming institutional and technological challenges, with a focus on improving customer-centric services and business model innovation

 

What research methods have been used in this study?

The study employed a Systematic Literature Review (SLR) as its primary research method. The SLR followed a structured process involving several stages:

1.    Planning Stage:

• Defined the review scope, established a review protocol, and formulated a clear research question.

2.    Conducting Stage:

• Developed a comprehensive search strategy using three major electronic databases specialized in business literature: ABI/INFORM, EBSCO Host Business Source Elite, and Scopus.
• Keywords and search terms related to ‘commercial bank,’ ‘fintech,’ ‘Industry 4.0,’ and ‘digital transformation’ were constructed, including synonyms and related terms.
• Applied eligibility criteria to refine search results, removing non-English, non-peer-reviewed, irrelevant field articles, duplicates, and those not directly related to banking, Industry 4.0, or digital transformation.
• From 1,513 identified articles, after screening and applying criteria, 287 articles were selected for in-depth review.

3.    Data Analysis:

• Employed an inductive coding approach to analyze the selected articles, allowing themes and codes to emerge directly from the data without the influence of pre-existing theories.
• Developed 16 codes from the literature, categorized into three clusters: development for customers, technological development, and development of banking networks.
• The coding process involved thorough full-text analysis and collaboration among researchers to ensure reliability and validity.

4.    Methodological Review of the Selected Studies:

• Within the reviewed articles, 62% were empirical studies, with research methods distributed as follows:
• Quantitative (34 cross-sectional surveys, 13 longitudinal surveys, econometric and regression analyses).
• Qualitative (mainly case studies and ethnographic studies).
• Mixed methods combining qualitative and quantitative approaches.

This methodological framework ensured a comprehensive, rigorous, and systematic understanding of the digital transformation landscape in commercial banks through existing literature.

 

Describe 2 main academic theories employed in this study.

The study mainly references two academic theories/frameworks that could be employed to deepen the understanding of digital transformation (DT) in commercial banks:

1.    Resource-Based View (RBV):

• This theory focuses on the resources and capabilities that organizations possess as sources of competitive advantage. In the context of DT, RBV helps examine how banks develop and leverage their technological and organizational resources to integrate and apply new Industry 4.0 (I4.0) technologies within their business models.
• The study suggests that integrating RBV with dynamic capabilities can explain how banks adapt and innovate through digital transformation.

2.    Absorptive Capacity Perspective (Cohen & Levinthal, 1990):

• Absorptive capacity refers to an organization's ability to recognize the value of new external information, assimilate it, and apply it for commercial purposes.
• The study proposes that this theoretical perspective is useful to investigate how commercial banks acquire and implement new digital and I4.0 technologies, facilitating the evolution of their digital transformation processes. It supports exploring differences in how banks across diverse contexts develop these capabilities.

Both theories provide a conceptual foundation for understanding the strategic and organizational mechanisms underpinning digital transformation in the banking sector beyond just technological aspects, emphasizing capabilities, learning, and competitive advantage

 

What research approaches (i.e. qualitative method, quantitative method and mixed research method) have been used in this study?

The study conducted a systematic literature review (SLR) of 287 articles and found the following research approaches used in the reviewed studies:

·        Quantitative methods: Used in 96 of the studies, with common techniques including cross-sectional surveys (34 studies), longitudinal surveys (13 studies), hypothesis testing (23 studies), econometric methods (13 studies), and regression analysis (8 studies).

·        Qualitative methods: Used in 64 studies, with the predominant approach being case studies (36 studies) and ethnographic studies (13 studies).

·        Mixed methods: Used in 19 studies, generally combining case studies with quantitative methods such as surveys to gain a more comprehensive understanding.

Thus, the study includes empirical work spanning quantitative, qualitative, and mixed approaches to provide a holistic view of digital transformation in the banking sector.

 

What (reasoning) research approaches have been used in this study (i.e. inductive, deduct and abductive approaches)?

The study employed an inductive reasoning research approach. Specifically, it used inductive coding to analyze the 287 articles in the systematic literature review. This inductive approach did not rely on pre-established concepts or theories but allowed concepts, themes, and models to emerge directly from the data, facilitating a more open and flexible investigation of the digital transformation practices and challenges in the banking sector. The inductive coding involved systematic examination and interpretation of raw textual data, enabling new insights to arise free from pre-existing theoretical influences.

There is no mention of deductive or abductive reasoning approaches being used in this study.

 

Describe 3 main claims of the article in terms of Toulmin's model of argument.

Based on the information from the article, three main claims can be articulated using Toulmin's model of argument, which comprises Claim, Grounds (Evidence), Warrant (Reasoning), Backing, Qualifier, and Rebuttal. Here is a description of three core claims with their components:

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Claim 1: Digital transformation (DT) in commercial banks is driven by Industry 4.0 technologies, significantly impacting customer experience, technological development, and banking networks.

• Grounds/Evidence: The systematic literature review analyzed 287 peer-reviewed articles from 2010 to 2023, showing a surge of studies after 2018 focused on AI, blockchain, big data, and digital platforms affecting banking operations and services, particularly customer experience, payments, risk management, and collaboration with FinTechs.
• Warrant: The increasing use and advancements of I4.0 technologies lead to innovation and transformation in banking services and infrastructure because these technologies enable banks to better understand and serve customers, optimize processes, and adapt to external pressures.
• Backing: Prior studies and frameworks on digital transformation and Industry 4.0 technologies support the connection between technological adoption and organizational change (e.g., Baiyere et al., 2020; Wessel et al., 2021 cited in the discussion).
• Qualifier: This claim holds generally across a majority of commercial banks, though specifics may vary by geographical region, regulation, and bank structure.
• Rebuttal: Some banks still face barriers such as regulatory limitations, mistrust by customers, or lack of technological literacy which may slow or constrain DT’s full impact.

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Claim 2: An inductive coding approach provides a rigorous and flexible method for identifying themes and patterns in the literature on digital transformation in banking.

• Grounds/Evidence: The study systematically coded 287 articles using an inductive approach to allow themes to emerge naturally without being constrained by pre-existing theories, resulting in 16 codes organized into 3 clusters (development for customers, technological development, and development of banking networks).
• Warrant: Inductive reasoning avoids bias inherent in starting with predefined concepts, allowing new insights and a comprehensive understanding of the DT phenomenon in banking.
• Backing: The research team followed validated procedures for inductive coding with inter-coder reliability checks and consensus discussions, enhancing the validity and reliability of the results (Chandra et al., 2019; Thomas, 2006).
• Qualifier: The method is particularly effective for fields with evolving or novel topics, such as DT and Industry 4.0 in banking.
• Rebuttal: Inductive approaches may be limited by the subjectivity of interpretation and may miss specific theoretical nuances compared to deductive methods.

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Claim 3: Collaboration between commercial banks and FinTechs fosters innovation and enhances the adoption of Industry 4.0 technologies in banking networks.

• Grounds/Evidence: Multiple studies within the literature review emphasize partnerships between banks and FinTechs as key drivers for spreading technological innovation and overcoming limitations related to agility and customer reach.
• Warrant: Combining the established resources and customer base of banks with the agility and technological expertise of FinTechs creates a synergistic effect conducive to DT.
• Backing: Empirical findings from the reviewed articles highlight successful collaborations and resultant innovations in product diversification and service accessibility (Drasch et al., 2018; Bellardini et al., 2022).
• Qualifier: While collaboration is generally beneficial, effectiveness depends on alignment of goals, regulatory frameworks, and market conditions.
• Rebuttal: Some partnerships may face challenges related to competition, cultural differences, or integration difficulties, potentially limiting innovation outcomes.

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These claims summarize key argumentative thrusts of the article in terms of Toulmin’s model, combining evidence and reasoning from the systematic literature review on digital transformation in commercial banks.

 

Describe 2 main research limitations of this study.

Two main research limitations of the study are:

1.    Focus limited to Industry 4.0 technologies: The study examines the digital transformation (DT) process in commercial banks solely through the lens of Industry 4.0 (I4.0) technologies. This focus excludes other possible theoretical perspectives and frameworks that might provide complementary insights into how organizations adapt and integrate transformative technologies over time. Thus, broader conceptualizations of DT beyond I4.0 technologies are not explored, which could limit understanding of the full scope of the DT process.

2.    Exclusive reliance on peer-reviewed academic literature: The study relies exclusively on a systematic literature review of 287 peer-reviewed academic articles, potentially missing practical applications and immediate industry trends documented in non-academic sources such as official banking reports or grey literature. These sources are commonly used by practitioners to track real-time developments, and their exclusion may result in an incomplete understanding of how technologies are currently implemented in the banking sector. Incorporating these sources could provide a more holistic and contemporary view.