TITLE:
The Impact of Digital Transformation on Six Commercial Banks Performance in Botswana
AUTHORS:
Chidozie Njoku, Mojewa S. Bonang
KEYWORDS:
Digital Transformation, Banking Performance, Botswana, Efficiency, Technology-Organization-Environment (TOE) Framework, Financial Services
JOURNAL NAME:
Open Journal of Business and Management,
Vol.13 No.6,
October
30,
2025
ABSTRACT: This study examines the impact of digital transformation on the performance of commercial banks in Botswana, focusing on key performance indicators such as profitability, efficiency, market share, and risk management. While digital transformation has been globally recognized for its role in reducing operational costs, enhancing customer engagement, and fostering innovation, its specific effects on Botswana’s banking sector remain underexplored. Using a panel data regression model, this study analyzes data from six commercial banks in Botswana over a 20-year period (2003-2023). The selected banks represent a diverse range of sizes, technological readiness, and market presence. The study employs the Technology-Organization-Environment (TOE) framework to understand the internal and external factors influencing the adoption of digital technologies. Descriptive statistics, stationarity tests and correlation analysis provide insights into the relationships between digital transformation and bank performance. The findings suggest that digital transformation has a positive impact on efficiency, profitability, and market share, albeit with significant variability across banks due to differences in size, resources, and regulatory environments. The study also identifies key challenges, including limited digital literacy, resource constraints, and regulatory bottlenecks, which hinder the full potential of digital transformation in Botswana’s banking sector. The results have important implications for banking policy, digital strategy formulation, and further empirical research on financial performance in emerging markets.