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Communications of the Association for Information Systems

Author ORCID Identifier

Dereje Ferede: https://orcid.org/0000-0002-8485-6353

Miftah Hassen Jemal: https://orcid.org/0009-0007-2381-5340

Alemayehu Molla: https://orcid.org/0000-0001-9320-7294

Abstract

Many organizations are undergoing digital transformation. However, literature often assumes a substantial influence from consumers, competitors, technology institutions, and organizational resource endowment. These assumptions may not necessarily apply to the digital transformation initiatives in Sub-Saharan Africa and other low-income economies. In response to the call for research to challenge the unexamined assumptions of digital transformation and develop contextualized theoretical contributions, this study explores the processes, enablers, inhibitors, and outcomes of digital transformation through a case study of a bank in Ethiopia (henceforth EtBank). Over the past decade, EtBank has transformed from a cash-intensive, branch-based, brick-and-mortar bank to a digital bank offering niche mobile money services, conducting most retail transactions electronically, and contributing to digital financial inclusion. All of this augurs well for future change. Based on insights from EtBank's experience, the study presents a process theory that frames digital transformation as deeply influenced by historical and contextual factors, the interaction between organizational capabilities and frugal innovation, and the role of institutions as enablers and inhibitors. The study contributes to the literature on responsible and government-led digital transformation, underscoring the significance of historicity and context in the process. Additionally, it offers valuable guidance for other organizations embarking on similar digital transformation journeys.

DOI

10.17705/1CAIS.05739

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