THE IMPACT OF DIGITAL TRANSFORMATION ON THE WORK MOTIVATION OF BANK EMPLOYEES IN HO CHI MINH CITY: THE MEDIATING ROLE OF JOB CHARACTERISTICS

Abstract

Under the pressure of the digital economy, the banking sector in Ho Chi Minh City experienced significant changes, which transformed the traditional working environment. This study examined the factors in digital transformation that affected employees’ work motivation through the mediating role of job characteristics. The research model included four independent variables adapted to the digital context: Training and Development (improving AI and digital skills), Working Conditions (modern digital systems and infrastructure), Leadership (support during digital transformation), and Organizational Culture (a digital-oriented mindset). The results indicated that these digital factors positively influenced Job Characteristics, such as increasing autonomy and task significance through technology use. Job Characteristics then played an important mediating role in enhancing Work Motivation, including employees’ enthusiasm and commitment in a digital environment. Using a quantitative research method, data were collected from 427 employees working at commercial banks in Ho Chi Minh City. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to assess both the measurement and structural models, as well as the mediating effects. The study provided practical implications for bank managers in Ho Chi Minh City to improve their human resource strategies, ensuring that digital transformation not only increased operational efficiency but also strengthened employee engagement and long-term commitment.