Perspective of Ambidextrous Leadership and Collaboration Capability Towards Bank Performance Sustainability

Perspective of Ambidextrous Leadership and Collaboration Capability Towards Bank Performance Sustainability

Suhardjo Moeliadi (Bina Nusantara University, Indonesia), Mts Arief (Bina Nusantara University, Indonesia), Willy Gunadi (Bina Nusantara University, Indonesia), and Rano Kartono Rahim (Bina Nusantara University, Indonesia)
Copyright: © 2025 |Pages: 22
DOI: 10.4018/IJABIM.376481
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Abstract

Banks often partner with fintech to provide comprehensive solutions for customers, but these collaborations are often unsuccessful. This study explored how a bank's collaboration capability (CC), ambidextrous leadership (AL), and government policy (GP), affect bank performance sustainability (BS). Quantitative survey method was used to collect data from senior executives at 105 commercial banks in 20 Indonesian cities. The proposed model was identified by structural equation modeling-partial least squares, with SmartPLS 4. Results indicate that CC has a positive effect on BS and is moderated by GP. AL has a positive effect on BS and CC, and CC can act as mediator. This research contributes to the development and validation of a new model and offers an initial idea about how leaders can create a culture of collaboration while the government carries out its responsibility in regulating and fostering collaboration. Future studies should explore different types of banks, e.g. Islamic banks.
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Introduction

Banking competition in Indonesia has caused banks to close and reduce the number of their offices. In 2023, the World Bank reported that bank branches in Indonesia had decreased, from 17.3 offices per 100,000 adults in 2016 to 11.69 offices per 100,000 adult (World Bank Group, 2024). In their efforts to survive, banks are collaborating with fintech companies, technology providers, and other third parties to innovate, improve customer experiences, and meet evolving financial needs. According to a U.S. banking strategic partnership survey, approximately 40% of all bank partnerships fail to operationalize, mostly because of ineffective strategies, scalability issues, and poor organizational alignment. In the case of banks, collaboration capability (CC) seems to play a significant role.

Studying the effect of CC on banking performance is crucial, for several reasons. First, the rapidly growing fintech involves increasingly responding to customers’ financial needs, but banks are still having difficulty developing their own innovative products and services, especially those related to technology, which require specialized and expensive expertise, making collaboration a sensible strategic choice. Second, CC in banking has not been widely studied. Previous studies have mostly researched CC in the supply chain (Um & Kim, 2019; Zhang & Zhu, 2020). Third, previous studies have been inconsistent with respect to the effect of CC on company performance. Several studies have shown that CC has a positive and significant effect on company performance (Chen, 2024; Corvello et al., 2023), whereas other studies have noted that collaboration can cause conflict and thus harm company performance (Piezunka & Grohsjean, 2023). This study will help clarify the influence of bank CC on bank performance.

Leaders significantly affect organizational policy in facilitating collaboration (van der Voet & Steijn, 2021). Leaders must cultivate enduring connections with corporate partners, promote transparent communication, facilitate active engagement, and encourage collaboration across team members and diverse functions. Ambidextrous leadership (AL) is the ability to develop long-term connections with business partners and to foster open communication, active engagement, and collaboration across team members and diverse departments (Lawrence et al., 2022).

The banking industry is a highly regulated one. External factors related to banking operations include government policy (GP), such as government those regarding interbank cooperation, data exchange, and collaboration with fintech providers that meet certain requirements, as well as how banks collaborate with other industries, such as capital markets, insurance, and e-commerce (Brandao-Marques et al., 2020; Chatterjee & Chaudhuri, 2022).

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