Technology adoption and effective decision-making in financial institutions: Moderated-mediation analysis

Purpose: This study examines the influence of technology adoption in enhancing decision-making effectiveness within financial institutions, with a specific focus on the mediating role of risk management capabilities. It also investigates how managerial competence and digital culture moderate this relationship. Method: A cross-sectional survey design was used to collect data from 291 managerial staff in financial institutions, who were selected using a multi-stage sampling approach. The PROCESS macro was applied to analyse the hypothesised model. Findings : The study demonstrates that technology adoption significantly enhances effective decision-making in financial institutions, primarily through its impact on risk management capabilities. Furthermore, the moderating roles of managerial competence and digital culture were confirmed, with both factors amplifying the positive effects of technology adoption on decision-making through enhanced risk management capabilities. Originality/Value : This research provides a novel contribution to the understanding of how technology adoption influences decision-making in the financial sector. By focusing on managerial competence and digital culture as moderators and risk management capabilities as a mediator, the study offers practical insights for financial leaders to optimise decision-making through strategic technology integration.