Toward Digital Transformation: a Cluster Analysis of the Banking Industry in Algeria

This study aims to explore the dimensions driving higher levels of digital maturity in the Algerian banking industry, an area with limited existing research. Drawing on dynamic capabilities’ theory, the research explores the evolution of digital maturity through three phases: sensing, seizing, and transforming, with a focus on eight key dimensions of digital capability: strategy, leadership, market, operations, people, culture, governance, and technology. Using data from 150 bank employees in Algeria, a cluster analysis method was employed to identify and categorize levels of digital maturity. The results indicate that strategy, technology, market, and culture capabilities scored the highest, leading to the identification of three distinct clusters, which were analyzed in relation to their associated dimensions. Overall, this study provides a roadmap for enhancing digital maturity in Algerian banks and suggests potential avenues for future research in this area.