The Influence of Digital Adoption, Absorptive Capacity and Risk Management Implementation on Organizational Resilience: An Empirical Study in the Indonesian Banking Industry

Abstract

The challenges of the banking industry in Indonesia are to ensure that the industry remains resilient and able to anticipate the downside risks arising, including strengthening governance, risk management, and prudential principles. This study will determine the effect of digital adoption, absorptive capacity, and risk management practice on organizational resilience. The method in this study is a survey research method. A questionnaire was given to senior executives in the banking sector of Indonesia, including C-suites, senior vice president, and vice president levels. The results show that digital adoption and absorptive capacity play a role in the growth of organizational resilience and risk management practice. However, much research has yet to be done on Indonesia's banking sector. The empirical data from this study will contribute to our understanding of how risk management is related to enterprise resilience. These findings make it possible for management in the financial sector and policymakers to design strategies and a framework for policymaking that will foster organizational resilience and assist the banking sector in successfully navigating risky and disruptive business conditions. This study's contribution will provide empirical data that broadens the environment for using the organizational resilience concept and theory of dynamic capacity in various organization types, like the banking industry, that operate in developing nations.