LINKING BUSINESS TRANSFORMATION CONCEPTUALIZATION TO PERFORMANCE THEORY AND IMPLICATIONS FOR COMMERCIAL BANK IN NIGERIA

Abstract

This study robustly establishes the conceptual nexus of business transformation conceptualizations and performance heuristics in service oriented banking sector organizational context. The Central Bank’s liberalization of banking industry policy in Nigeria and the resultant rise in competition among the financial institutions in Nigerian financial market has brought to fore the need for creation of innovative financial assets, or products, through business transformation that would maintain current customers and attract new ones. Business transformation in the baking sectors involves the development of new products and services or production process that lead to efficient and effective operations. Commercial bank transformation is a process of radically altering the commercial bank’s strategic decision including fundamental changes in structures, process and organizational behavior. Such transformation involves what is called second order or gamma change involving discontinuous shifts in strategy, structure, process and culture of commercial banks. On the bases of Performance Theory, the conceptual findings of this study will assist banking industry to achieve its cashless policy by addressing the gaps in electronic banking adoption in Nigeria. The study recommends that future studies should focus on primary and secondary empirical data-driven modeling of the mechanism linking business transformation to performance in banking sector organization in Nigeria.