Exploring Human Resource Contributions to Bank Performance in Vietnam
DOI: https://doi.org/10.65967/cpbo.v2i2.63
Human Resources, Bank Performance, Digitalization, Automation, ICT
Abstract
This study investigates the role of human resources in enhancing bank performance in the digital era and examines whether technology strengthens the contribution of human capital within a developing economy. As automation and digital transformation continue to reshape banking operations, leading to reductions in branch networks and workforce size, concerns have emerged regarding the continuing importance of human resources in driving organizational performance. The study utilizes panel data from 22 Vietnamese commercial banks over the period 2011–2023, drawing information from audited annual reports, the General Statistics Office of Vietnam, and the World Bank. The analysis employs the Feasible Generalized Least Squares (FGLS) method and incorporates several human resource indicators. The findings demonstrate that human resources remain a significant determinant of bank performance despite increasing levels of digitalization. Results from both the baseline and extended models reveal a positive and statistically significant relationship between human resource factors and bank performance. However, the interaction between human resources and technological advancement does not generate a synergistic effect that further improves performance in highly digitalized banks. A key limitation of this study is the use of the ICT Index as a proxy for technological development, which may not fully capture the complexity of automation and digital transformation. Nevertheless, the study provides empirical evidence that human resources continue to play a vital role in the banking sector even as technological solutions become more prevalent. These findings offer important implications , bank managers, and other stakeholders seeking to balance technological investment with human capital development.
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