Pa ge 1 Pa ge 79 American Journal of Environmental Economics (AJEE) The Role of Reengineering Operations in Achieving Banking Sustainability: A Case Study on A Sample of Employees in Iraqi Private Commercial Banks Mustafa Khudhair Hussein1*, Omar Tawfiq Mahdi1, Mustafa Mohammed Kleban Zuhairi1, Ruaa Basil Noori Al-Tekreeti1 Volume 2 Issue 1, Year 2023 ISSN: 2833-7905 (Online) DOI: https://doi.org/10.54536/ajee.v2i1.2259 https://journals.e-palli.com/home/index.php/ajee Article Information ABSTRACT Received: November 12, 2023 Accepted: December 15, 2023 Published: December 18, 2023 The study aims to know the role of reengineering processes (process design, service quality, technology) in achieving banking development in its three dimensions (economic, social, and environmental) in Iraqi private commercial banks. The descriptive analytical approach was adopted by distributing a questionnaire to a sample of workers in those Banks (338 ) from various administrative levels. The most prominent results were the existence of a positive relationship between reengineering processes and banking sustainability and that Reengineering has an impact on achieving sustainability in banks through redesigning operations and enhancing the quality of service and technology used. The most prominent recommendations were that the management of private banks in Iraq develop appropriate strategies to develop sustainability activities and improve its operations in line with the needs and desires of customers. Keywords Reengineering Processes, Banking Sustainability 1 Imam A’adhum University College, Iraq * Corresponding author’s e-mail: mustafakhudair87@gmail.com INTRODUCTION Reengineering banking operations is an essential strategy that helps achieve banking sustainability and improve performance. Banking process optimization involves restructuring and enhancing existing banking procedures to maximize efficiency and improve overall performance. The reengineering operations are used to analyze and restructure the operations of private commercial banks in Iraq to achieve financial and economic sustainability. Iraqi private commercial banks encounter various obstacles that impact their capacity to maintain long-term viability in the banking sector. These problems include legislative constraints, technical advancements, changes in consumer preferences, and financial strains. Implementing operational Reengineering in the banking sector improves the capacity to adapt to challenges and accomplish objectives (Nasser & Abdul-Redha, 2023), particularly in the Iraqi context, marked by ongoing changes and a dynamic environment. Requires bank management to identify practical approaches and strategies to enhance their position and effectively address these persistent and evolving challenges. Reengineering operations aims to enhance efficiency and quality, minimize expenses, and augment customer happiness (Falih et al., 2020). This encompasses the examination and assessment of existing operations, the identification of issues and deficiencies, the formulation of novel solutions, and the creation of innovative and streamlined procedures. To accomplish these goals, many strategies are implemented, including organizational redesign, process reengineering, supply chain management, and sophisticated technology (Maharmah & Al Jbour, 2023). Studying the impact of reengineering operations on the viability of Iraqi private commercial banks is a crucial and noteworthy topic. Iraq has a grand total of 81 banks comprising seven government and 74 private banks. Among the private banks are 24 commercial banks and 29 Islamic banks. Additionally, there are 21 branches of international banks operating in the country. Compared to other countries in the area, Turkey has the highest number of banks with 43, followed by Egypt with 41, Saudi Arabia with 31, Iran with 30, Jordan with 26, and Algeria with 20. Despite the abundance of banks in Iraq, they still need to fulfill their necessary financial function and offer contemporary banking services and products (Jabr & Shamkhi, 2023). This research seeks to investigate how banking sustainability can be attained in Iraqi private commercial banks through the implementation of reengineering operations. It aims to identify the factors that impact the success of these operations and elucidate the potential advantages and obstacles they may encounter. Therefore, the research problem can be articulated by the subsequent primary inquiry: Has the management of Iraqi banks successfully implemented reengineering operations in their banking processes to improve the sustainability of their activities and operations? The primary inquiry gives rise to the subsequent subordinate inquiries: 1- What is the level of reengineering operations practices in the researched Iraqi private commercial banks? 2- What is the level of banking sustainability in the researched Iraqi private commercial banks? 3- What is the role of reengineering operations in enhancing banking sustainability in Iraqi private commercial banks? The Eesearch Objectives 1. To determine the level of reengineering operations practices in Iraqi private commercial banks. 2. To determine the level of banking sustainability in Iraqi private commercial banks. Pa ge 80 https://journals.e-palli.com/home/index.php/ajee Am. J. Environ Econ. 1(2) 79-91, 2023 3. To identify the role of reengineering operations in achieving banking sustainability in Iraqi private commercial banks. 4. To provide some conclusions and recommendations that can enhance the performance and development of Iraqi private commercial banks by strengthening their strengths and addressing areas of weakness. Importance of the Research The scientific significance of the current research lies in its exploration of the variables under study, namely reengineering operations and banking sustainability. These concepts are essential in managerial and accounting thinking due to the valuable methods and practices they offer. Reengineering operations in banking serves as an effective tool for achieving banking sustainability. These operations aim to redesign and improve banking processes and procedures to enhance efficiency, reduce costs and risks, and strengthen the banks’ ability to compete in the commercial banking market. By improving operational efficiency and enhancing customer experience, banks can provide better and more competitive banking services, attracting more customers and increasing their market share. This, in turn, elevates the performance levels of Iraqi banks. The banking sector is one of the critical sectors in the Iraqi economy and the largest in the region in terms of the number of banks. These reasons have motivated the researchers to adopt this topic as it holds great importance, mainly when applied in the Iraqi context. LITERATURE REVIEW Reengineering-Operations Reengineering operations is the comprehensive analysis and redesign of current banking processes and procedures to improve efficiency, effectiveness, and quality significantly. It aims to reshape and transform traditional and inefficient banking operations into innovative and greatly improved processes using technology and modern ideas (Hasnan et al., 2017: 3). This concept focuses on redesigning banking operations to align with changes and innovations. Bhaskar (2018: 65) emphasized redesigning business operations and organizational thinking regarding processes, interconnected systems, and organizational structure to achieve significant performance improvements. It emphasizes both redesign and organizational thinking. On the other hand, Aruta (2018: 2) states that Business Process Reengineering (BPR) aims to achieve significant performance improvements rather than incremental and gradual improvements resulting from traditional process improvement methods. It focuses on making substantial improvements in operations. Similarly, Chin et al. (2019: 1) clarified that it involves rethinking and analyzing business processes to improve performance by integrating information technology with process design, highlighting the technological improvements in accomplishing banking operations and activities. AbdEllatif et al. (2018) focused on radical improvements in the operational strategy through rapid and radical changes in the organization’s work using modern management methods, such as reengineering strategic processes, policies, organizational structures, and values in unconventional ways. Based on the above, the researchers see reengineering operations as practices aimed at making changes and improvements in their processes, activities, strategies, and services, as well as the technology used to enhance activities and achieve desired goals with lower costs, time, and higher quality. Economic, legal, and environmental pressures impose strict requirements on organizations or banks to effectively redesign their processes, develop new strategies, and improve organizational structures and operations to adapt to these challenges and achieve sustainable success. Implementation initiatives of reengineering processes have achieved significant and influential results for organizations adopting this approach. They have achieved significant cost reductions, increased profits, improved production quality, and rapid response to customer requirements (Getele & Jean, 2018). On the other hand, Reengineering is a means to solve complex problems. It works on improving business processes and is not limited to improving the current situation but has a lasting impact. It also includes significantly improving all low-performing activities (Cemehocha et al., 2020: 2). Reengineering operates widely within an organization and has many benefits, such as cost reduction, increases, and improved production, which increases customer satisfaction (Abdel-Latif et al., 2018: 2). It is also a systematic tool that works on changing performance and future improvement and includes the radical redesign of its processes, characterized by specifications during implementation (Chountalas & Lagodimos, 2018: 14). In the same context, Gunasekaran and Kobu (2002) stated that it is an interconnected and sequential process that works integrally to make incremental or radical improvements in behaviors, structures, technologies, processes, and customer service, as shown in Figure (1) below: Figure 1: Re-engineering Operations Pa ge 81 https://journals.e-palli.com/home/index.php/ajee Am. J. Environ Econ. 1(2) 79-91, 2023 Banking Sustainability The concept refers to the ability of banking institutions to balance economic, social, and environmental dimensions in their operations and decision-making to meet the needs of the current generation without compromising the ability of future generations (Brundtland, G.H. 1987). Companies and institutions recognize that sustainability is crucial for long-term success (Ali et al., 2021). Integrating sustainability into strategic management provides a framework for achieving business goals. It can lead to new opportunities, cost reduction, improved brand reputation, and a positive impact on society and the environment (Banerjee, 2018). Sustainable practices such as reducing energy consumption and greenhouse gas emissions can help companies improve their environmental performance and reduce costs (Poudel et al., 2021). Additionally, integrating circular economy principles, such as waste reduction and material reuse, can enhance environmental sustainability and business competitiveness (Teng et al., 2020). Social sustainability has emerged as a significant topic in recent research, with companies prioritizing employee health and safety and supporting local communities, which proves to be more resilient during times of crisis (Leung et al., 2020). Similarly, promoting diversity and inclusion can improve employee engagement and retention (Córdoba-Pachón et al., 2021). Economic sustainability is also essential, with sustainable practices such as investing in renewable energy and waste reduction leading to long-term financial performance and value creation (Fan et al., 2021). The triple bottom line framework is commonly used to measure sustainability as it takes a comprehensive approach (Savitz & Weber, 2014; Alkhodary, D., 2021). The framework includes three dimensions of sustainability: environmental, social, and economic. The environmental dimension relates to the impact of operations on the natural environment, the social dimension considers their impact on stakeholders, and the economic dimension focuses on financial performance. The United Nations’ Sustainable Development Goals (SDGs) provide a global framework to address sustainability challenges, with 17 goals covering various environmental, social, and economic aspects (The United Nations, 2015). Research Hypotheses Primary Hypothesis H1 There is a statistically significant relationship between reengineering processes dimensions (process design, service quality, technology) and banking sustainability dimensions (economic dimension, social dimension, environmental dimension) in Iraqi private commercial banks in Iraq. Primary Hypothesis H2 There is a statistically significant impact of reengineering processes variables dimensions (process design, service quality, technology) on enhancing banking sustainability dimensions (economic dimension, social dimension, environmental dimension) in Iraqi private commercial banks, and the following sub-hypotheses branch from it: Sub-Hypothesis H2-1 There is an impact of process design dimension on enhancing banking sustainability in Iraqi private commercial banks. Sub-Hypothesis H2-2 There is an impact of service quality dimension on enhancing banking sustainability in Iraqi private commercial banks. Sub-Hypothesis H2-3 There is an impact of the technology dimension on enhancing banking sustainability in Iraqi private commercial banks. Research Model The research model is based on the relationship between reengineering processes and banking sustainability in Iraqi private commercial banks. The Model consists of three main dimensions: the three dimensions of reengineering processes (process design, service quality, technology) and the three dimensions of banking sustainability (economic dimension, social dimension, environmental dimension). Figure 2: Research Methodology The researchers adopted a descriptive-analytical methodology in this study. This Methodology involves describing the phenomenon and the related concepts and analyzing and interpreting the phenomenon based on the results and data obtained. A questionnaire consisted of 30 items, with 15 items representing the independent variable of reengineering processes and another 15 Pa ge 82 https://journals.e-palli.com/home/index.php/ajee Am. J. Environ Econ. 1(2) 79-91, 2023 items representing the dependent variable of banking sustainability. This design aligns with the objectives of the current research. Research Community and Sample The research community comprises employees in Iraqi private commercial banks, totaling 2,843 employees from various senior, middle, and executive positions (bank managers, branch and department managers, section and unit managers, accountants, auditors, and administrators). The research includes eight Iraqi private commercial banks out of Iraq’s 24 commercial private banks. The selected banks are Baghdad Bank, Iraqi Commercial Bank, Iraqi Middle East Investment Bank, Iraqi Investment Bank, United Bank for Investment, Iraqi Al-Ahli Bank, Iraqi Credit Bank, and Economy Bank for Investment and Finance. These banks were chosen due to their prominence and being the largest in activity among Iraqi private commercial banks and the oldest in this sector, as shown in the following Table (1). “A random sample of 338 individuals was drawn from various managerial levels of the researched population, which consists of a total of 2,843 individuals. This was done based on the )Steven K. Thompson ,2012). The details of the sample are shown in Table (2) below.” Table 1: Comprises employees in Iraqi private commercial banks No. Bank Name Year of Establishment Capital Number of Branches Number of Employees 1 Baghdad Bank 1992 250 billion 23 470 2 Iraqi Commercial Bank 1992 250 billion 8 185 3 Iraqi Middle East Investment Bank 1993 250 billion 18 385 4 Iraqi Investment Bank 1993 250 billion 16 298 5 United Bank for Investment 1994 300 billion 26 510 6 Iraqi Al-Ahli Bank 1995 250 billion 18 360 7 Iraqi Credit Bank 1998 250 billion 4 175 8 Economy Bank for Investment and Finance 1999 252 billion 23 460 Total 2843 RESULTS AND DISCUSSION Characteristics of the Research Sample The characteristics of the research sample include gender, age, educational level, and work experience. It can be observed that the highest percentage in terms of gender is for males at 71% compared to 29% for females. Regarding age, 16% of the sample falls between 20 and 30, while 43% falls between 31 and 40. Then, 28% of the sample falls between 41 and 49, while 13% are 50 or older. Regarding educational level, 72% of the sample hold a Bachelor’s degree, while 15% have a higher diploma, 8% have a Master’s degree, and 5% have a Doctorate. Table 2: Represents the research sample according to the researched managerial levels No. Categories Sample Size 1 Bank Managers 8 2 Branch and Department Managers 136 3 Section Managers 60 4 Accountants, Auditors, and Administrators 134 Total 338 Regarding work experience, 16% of the sample have work experience of 5 years or less, while 21% have work experience between 6 and 10 years. Additionally, 24% have work experience between 11 and 15 years, while 23% have work experience between 16 and 20 years. Furthermore, 16% have work experience of 21 years or more, and It can be observed that the sample is characterized by a high presence of males, individuals with Bachelor’s and higher degrees, and a range of work experience across different categories, with a higher proportion of individuals having extensive work experience. This reflects the suitability and alignment of the selected sample members in achieving Table 3: Descriptive Statistics Variables N Mean Std. Deviation Economic dimension 338 3.136 .6489 Environmental dimension 338 3.230 .6074 Social dimension 338 3.111 .8091 Pa ge 83 https://journals.e-palli.com/home/index.php/ajee Am. J. Environ Econ. 1(2) 79-91, 2023 the objectives of the current study, as their high level of experience, academic qualifications, and age can be relied upon in their responses, drawing from their accumulated experience and academic knowledge in their respective fields of expertise. To answer the reengineering operations and banking sustainability level, the researchers will use Descriptive Statistics. The statistical results for a set of researched variables (process reengineering and banking sustainability) using different measures, such as average and standard deviation, can be inferred from the above Table and are as follows: Economic Dimension The average in this dimension is approximately 3.136, with a standard deviation of 0.65. This indicates relatively less variation in the obtained responses in this dimension, which is at an average level. Environmental Dimension The average in this dimension is approximately 3.230, with a standard deviation of 0.60. This suggests that the responses related to the environmental dimension range from higher to lower values than the average. Social Dimension The average in this dimension is around 3.111, with a standard deviation of 0.80. This also indicates variation in the responses related to the social dimension, which is below average. Banking Sustainability The average in this dimension is about 3.15, with a standard deviation of 0.618. It is below average, indicating that sustainability practices in commercial banks in Iraq are not at the desired level. Process Design The average in this dimension is approximately 3.360, with a standard deviation of 0.561. It is at an average level. Service Quality The average in this dimension is about 3.369, with a standard deviation of 0.6913. It is at an average level. Technology The average in this dimension is approximately 3.080, with a standard deviation of 0.6352. It is below average, indicating a weakness in the technology-related aspects, particularly in process reengineering. Process Reengineering The average in this dimension is about 3.27, with a standard deviation of 0.566. Process reengineering is at an average level in the researched commercial banks. Assessment of Measurement Model Banking sustainability 338 3.15877712033 .618878368909 Process design 338 3.360 .5617 Service quality 338 3.369 .6913 Technology 338 3.080 .6352 Figure 3: Assessment of Measurement Model Validity& Reliability Both validity and reliability are crucial in ensuring the credibility and trustworthiness of research outcomes. Validity ensures that the research accurately captures the intended concepts and variables, while reliability ensures that the research findings are consistent and dependable. Convergent Validity In summary, proximal validity evaluates the consistency and agreement among questions or measures intended to assess the same construct or concept. It is assessed by examining the level of agreement or correlation between these questions or measures. It is measured through the following steps: Indicator Reliability Indicator reliability is determined by calculating the values of the outer loading for each indicator. Hair et al. (2012) suggested removing items with values below 0.4 and retaining indicators with values of 0.7 or higher. Items that fall between 0.4 and 0.7 are excluded if their removal increases composite reliability. If there is no change, they are retained. Table (4 ) illustrates the reliability of the Model’s indicators. We note from the previous Table that all indicators are reliable, which is greater than 0.7 Pa ge 84 https://journals.e-palli.com/home/index.php/ajee Am. J. Environ Econ. 1(2) 79-91, 2023 Construct Reliability and Validity The indicators “banking sustainability” and “reengineering processes” exhibit good internal consistency reliability, as indicated by Cronbach’s Alpha values of 0.880 and 0.881, respectively. The reliability is further supported by the rho_A (rho_alpha) values of 0.882 and 0.883, indicating consistent measurement within each construct. Both indicators demonstrate excellent composite reliability, with values of 0.926, indicating the measurement model’s high internal consistency and reliability. The Average Variance Extracted (AVE) values for “banking sustainability” and “reengineering processes” are 0.807 and 0.808, respectively. These values suggest that approximately 81% of the variance in the indicators can be explained by their respective constructs. In conclusion, the analyzed indicators exhibit good reliability, high internal consistency, and a significant proportion of variance explained by the constructs. Table 4: Indicator reliability Variables Latent Variables Outer loading Banking sustainability Economic dimension 0.878 Environmental dimension 0.890 Social dimension 0.926 Reengineering processes Process design 0.915 Service quality 0.892 Technology 0.888 Table 5: Construct Reliability and Validity Cronbach's Alpha rho_A Composite Reliability (AVE) Banking sustainability 0.880 0.882 0.926 0.807 Reengineering processes 0.881 0.883 0.926 0.808 Discriminant Validity Fornell-Larcker Criterion The Fornell-Larcker criterion is used to assess the discriminant validity of constructs in a measurement model. It examines the correlation between constructs and compares it to the square root of each construct’s average variance extracted (AVE). The provided Table shows that the correlation between “banking sustainability” and itself is 0.898, higher than its AVE’s square root (0.897). Similarly, the correlation between “reengineering processes” and itself is 0.899, higher than its AVE’s square root (0.897). These results indicate that each construct correlates highly with itself, demonstrating internal consistency. However, the correlation between “banking sustainability” and “reengineering processes” is 0.804, which is lower than the square root of their respective AVEs (0.897). This suggests that there is discriminant validity between these two constructs, as they are not highly correlated. Table 6: Fornell-Larcker Criterion Variables’ Bbanking sustainability Reengineering processes Banking sustainability 0.898 Reengineering processes 0.804 0.899 Table 7: Cross Loadings Latent Variables Banking sustainability Reengineering processes Economic dimension 0.878 0.716 Environmental dimension 0.890 0.697 Social dimension 0.926 0.752 Process design 0.755 0.915 Service quality 0.696 0.892 Technology 0.716 0.888 Cross Loadings The provided Table (7) presents the cross-loadings for the latent variables of “banking sustainability” and “reengineering processes” with their respective dimensions. For the “banking sustainability” latent variable, we observe high cross-loadings with the economic dimension (0.878), the environmental dimension (0.890), and the social dimension (0.926). These results suggest that the “banking sustainability” construct is strongly related to each dimension, indicating Pa ge 85 https://journals.e-palli.com/home/index.php/ajee Am. J. Environ Econ. 1(2) 79-91, 2023 that it encompasses various aspects of sustainability. Similarly, for the “reengineering processes” latent variable, we observe high cross-loadings with the process design dimension (0.915), the service quality dimension (0.892), and the technology dimension (0.888). These findings indicate that the “reengineering processes” construct is strongly associated with these dimensions. Overall, the cross-loadings in the Table indicate a good fit between the latent variables and their respective dimensions. This suggests that the measurement items used to assess the latent variables align well with the dimensions they are intended to measure, supporting the convergent validity Table 8: Variance Inflation Factor (VIF) Latent Variables VIF Economic dimension 2.183 Environmental dimension 2.500 Social dimension 3.065 Process design 2.714 Service quality 2.432 Technology 2.299 Table 9: Fit Summary Saturated Model Estimated Model SRMR 0.056 0.056 d_ULS 0.067 0.067 d_G 0.082 0.082 Chi-Square 167.229 167.229 NFI 0.887 0.887 Table 10: R-squared value Variable R Square R Square Adjusted Banking sustainability 0.646 0.645 Table 11: Correlations pearson Variables x1 x2 x3 x y1 y2 y3 y Process design 1 .737** .719** .904** .698** .683** .652** .752** of the measurement model. Collinearity Statistics (VIF) The provided Table (8) shows the Variance Inflation Factor (VIF) values for the latent variables included in the Model. VIF is a measure used to assess multicollinearity, the degree of correlation between predictor variables. A VIF value of )1-5) indicates no multicollinearity, and typically, values above 5 or 10 are considered problematic and indicative of severe multicollinearity. In this Table, the VIF values are below these critical thresholds, suggesting that multicollinearity is insignificant in this Model. Model Fit Based on the Fit Summary table (9), the estimated Model demonstrates a reasonably good fit to the data, as evidenced by the similar fit indices to the saturated Model across SRMR, d_ULS, d_G, Chi-Square, and NFI. The Coefficient of Determination The R-squared value of 0.646 indicates that approximately 64.6% of the variance in banking sustainability can be explained by the independent variables(reengineering processes). The remaining percentage is due to other variables not included in the current study model. The adjusted R-squared value of 0.645 is nearly identical, suggesting that the Model’s performance is not significantly affected by the number of predictors. Overall, the Model shows a moderately strong relationship between the reengineering processes and banking sustainability. After completing the model quality test and basic suitability tests, the research hypotheses will be tested: Testing the First Hypothesis The results in Table No. (11 ) above indicate a statistically significant correlation between the independent variable (process reengineering) with its three latent dimensions and the dependent variable banking sustainability with its three latent dimensions. Therefore, we accept the first research hypothesis H1. Pa ge 86 https://journals.e-palli.com/home/index.php/ajee Am. J. Environ Econ. 1(2) 79-91, 2023 Testing the Second Central Hypothesis H2 The path coefficient for the relationship between “reengineering processes” and “banking sustainability” is 0.804. This indicates a strong and positive relationship between these variables, suggesting that improvements in reengineering processes significantly impact banking sustainability. Therefore, we accept the second central hypothesis, H2. Service quality .737** 1 .678** .880** .578** .682** .611** .697** Technology .719** .678** 1 .909** .649** .664** .614** .714** Reengineering processes .904** .880** .909** 1 .716** .751** .696** .802** Economic dimension .698** .578** .649** .716** 1 .722** .643** .865** Environmental dimension .683** .682** .664** .751** .722** 1 .763** .931** Social dimension .652** .611** .614** .696** .643** .763** 1 .897** Banking sustainability .752** .697** .714** .802** .865** .931** .897** 1 Figure 4: Testing the second central hypothesis H2 Table 12: Path Coefficients PATH Original Sample (O) Sample Mean (M) (STDEV) T Statistics P Values Reengineering processes -> banking sustainability 0.804 0.805 0.020 40.057 0.000 Figure 5: The second study model aims to test the effect of the sub-dimensions of reengineering processes (process design, service quality, technology) on the dependent variable of banking sustainability in Iraqi commercial banks Indicator Reliability The results of the Model’s goodness-of-fit standards indicate that all dimensions and paragraphs of the Model fall within the goodness-of-fit standards, except for paragraphs q9, q8, and q7 of the service quality dimension and paragraphs Q1, Q2 of the process design dimension, which are less than the specified goodness-of- fit standard of 0.70, unless (Hair et al.) indicated (2917) If the saturation of the items falls between (0.40-0.70). The researcher must verify the effect of deleting this item on the other criteria of the measurement model. Therefore, when item Q9 is deleted from the study model, the value Pa ge 87 https://journals.e-palli.com/home/index.php/ajee Am. J. Environ Econ. 1(2) 79-91, 2023 Table 13: Outer Loadings Variables Indicators Cronbach's Alpha C.R (AVE) Banking sustainability Y1 0.879 0.880 0.926 0.807 Y2 0.890 Y3 0.925 Process design q1 0.698 0.802 0.864 0.560 q2 0.685 q3 0.737 q4 0.801 q5 0.812 Service quality q6 0.779 0.721 0.817 0.475 q7 0.638 q8 0.695 q9 0.569 q10 0.745 Technology q11 0.733 0.849 0.892 0.625 q12 0.836 q13 0.817 q14 0.749 q15 0.811 Table 14: Outer Loadings After modification Variables Indicators Cronbach's Alpha C.R (AVE) Banking sustainability Y1 0.879 0.880 0.926 0.807 Y2 0.890 Y3 0.925 Process design q1 0.698 0.802 0.864 0.560 q2 0.685 q3 0.737 q4 0.801 q5 0.812 Service quality q6 0.782 0.707 0.820 0.533 q7 0.651 q8 0.727 q10 0.755 Technology q11 0.733 0.849 0.892 0.625 q12 0.836 q13 0.817 q14 0.749 q15 0.811 Table 15: Cross loading Indicators Banking sustainability Process design Service quality Technology Economic dimension 0.879 0.697 0.596 0.665 of the other criteria (AVE) changes, and in this way, we decide to Delete the cursor. After completing the reliability standards (internal consistency consistency (Cronbach alpha), indicator stability (outer loading), and convergent validity (average variance extracted (AVE). The researcher conducted and tested the discriminant validity criterion (cross-loading), which aims to ensure that the items belong to the dimension they represent in a way that is larger than the other dimensions and does not overlap with them. The Table (15 ) below shows this test: Pa ge 88 https://journals.e-palli.com/home/index.php/ajee Am. J. Environ Econ. 1(2) 79-91, 2023 Environmental dimension 0.890 0.653 0.619 0.627 Social dimension 0.925 0.686 0.677 0.672 q1 0.512 0.698 0.512 0.487 q2 0.558 0.685 0.559 0.428 q3 0.568 0.737 0.498 0.541 q4 0.580 0.801 0.545 0.605 q5 0.604 0.812 0.657 0.634 q6 0.481 0.613 0.782 0.559 q7 0.506 0.466 0.651 0.533 q8 0.458 0.590 0.727 0.415 q10 0.586 0.511 0.755 0.462 q11 0.597 0.595 0.466 0.733 q12 0.552 0.569 0.582 0.836 q13 0.660 0.611 0.554 0.817 q14 0.554 0.515 0.532 0.749 q15 0.486 0.554 0.531 0.811 Collinearity Statistics (VIF) A VIF value of )1-5) indicates no multicollinearity, and typically, values above 5 or 10 are considered problematic The Coefficient of Determination The results of the above Table indicate that the coefficient of determination R-Square is 0.660 and R-Square Adjusted 0.657. That is, the dimensions of Table 16: Collinearity Statistics Indicators VIF Economic dimension 2.183 Environmental dimension 2.500 Social dimension 3.065 q1 1.430 q10 1.342 q11 1.533 q12 4.412 q13 1.869 q14 1.599 q15 4.100 q2 1.422 q3 1.610 q4 2.162 q5 2.005 q6 1.570 q7 1.220 q8 1.454 and indicative of severe multicollinearity. In this Table, the VIF values are below these critical thresholds Table 16: R-squared value Variable R Square R Square Adjusted Banking sustainability 0.660 0.657 the reengineering processes explain a percentage (66%) of the change occurring in the banking sustainability variable. In contrast, the remaining percentage is due to other variables not included in the current study model. Pa ge 89 https://journals.e-palli.com/home/index.php/ajee Am. J. Environ Econ. 1(2) 79-91, 2023 Testing the Sub-Hypotheses (H2-1 , H2-2,H2-3 ) of the Second Main Hypothesis Sub-Hypothesis H2-1 There is an impact of process design dimension on enhancing banking sustainability in Iraqi private commercial banks. Sub-Hypothesis H2-2 There is an impact of service quality dimension on enhancing banking sustainability in Iraqi private commercial banks. Sub-Hypothesis H2-3 There is an impact of the technology dimension on enhancing banking sustainability in Iraqi private commercial banks. Figure 6: Path Coefficients The Table provides path coefficients, descriptive statistics, t-statistics, and p-values for the relationships between three independent variables (“process design,” “service quality,” and “technology”) and the dependent variable “banking sustainability.” Table 17: Path Coefficients PATH Original Sample (O) Sample Mean (M) (STDEV) T Statistics P Values Process design -> banking sustainability 0.363 0.366 0.046 7.907 0.000 Service quality -> banking sustainability 0.216 0.212 0.049 4.427 0.000 Technology -> banking sustainability 0.321 0.322 0.047 6.867 0.000 Path Coefficients The path coefficients represent the strength and direction of the relationships. The coefficients for “process design,” “service quality,” and “technology” are 0.363, 0.216, and 0.321, respectively. These coefficients indicate positive relationships between each independent variable and banking sustainability. A higher value suggests a more substantial impact on banking sustainability. Sample Mean and Standard Deviation The sample mean represents the average values for the variables. The sample means for “process design,” “service quality,” and “technology” are 0.366, 0.212, and 0.322, respectively. The standard deviations (STDEV) indicate the variability of the scores around the mean for each variable. T-Statistics and P-Values The t-statistics measure the significance of the coefficients. Higher absolute t-values indicate greater significance. The corresponding p-values assess the probability of obtaining such results by chance alone. All the t-statistics are relatively high in this case, indicating significant relationships. The p-values of 0.000 suggest that the relationships between the independent variables and banking sustainability are statistically significant. All sub-hypotheses are accepted (H2-1, H2-2, H2-3 ). CONCLOGIN Economic Dimension The responses in this dimension show relatively less variation, indicating a moderate level of economic Pa ge 90 https://journals.e-palli.com/home/index.php/ajee Am. J. Environ Econ. 1(2) 79-91, 2023 performance among the researched commercial banks. Environmental Dimension The responses related to the environmental dimension vary, with some values higher and some lower than the average. This suggests that there is room for improvement in environmental practices within the banks. Social Dimension The responses in the social dimension exhibit variation, and the average is below average. This implies that there are areas where the banks can enhance their social initiatives and engagement. Banking Sustainability The average score for banking sustainability is below average, indicating that the sustainability practices in the researched commercial banks in Iraq must meet the desired level. There is a need for improvement in this area. Process Design The average score for process design is average, suggesting that the researched commercial banks have implemented generally satisfactory processes. Service Quality The average score for service quality is at an average level, indicating that the researched commercial banks provide services that meet the average expectations of their customers. Technology The average score for the technology dimension must be higher, highlighting a weakness in technology-related aspects, especially in process reengineering. The banks should focus on improving their technological capabilities. Process Reengineering The average score for process reengineering is at an average level, suggesting that the researched commercial banks have implemented reengineering practices that are generally satisfactory. The results indicate the need to improve banking sustainability, environmental practices, social initiatives, and technology-related aspects within the researched commercial banks. However, the banks have achieved average performance in economic dimensions, process design, service quality, and process reengineering. A positive relationship exists between the studied study variables, reengineering processes, and banking sustainability. RECOMMENDATION It is recommended to continue to enhance economic performance and achieve further improvements by adopting more sustainable strategies and developing environmental initiatives to contribute to environmental protection. Furthermore, banks should enhance their social responsibility and implement initiatives promoting communication and community engagement. The improvement in this area should be achieved by adopting sustainable initiatives and integrating environmental and social standards in banking operations. Continuing to improve process design is essential to enhance efficiency and effectiveness. It is crucial to improve service quality and enhance the customer experience continuously. Banks should focus on improving their technological capabilities and the necessity of improving process reengineering practices to enhance efficiency and achieve continuous improvements. In summary, the results indicate the need for improvement in banking sustainability, environmental practices, social initiatives, and technology-related aspects within commercial banks in the Iraqi environment. LIMITATION The study defines its scope for private commercial banks in Iraq, which refers to banks that operate in the private sector and provide commercial banking services. It was applied to a sample of employees in private commercial banks in Iraq, who number (338). It was applied to a sample of employees in the Iraqi environment, so it is preferable to include other variables. Such as inclusion, money, competitive advantage, and expanding the scope of application in a different environment REFERENCES AbdEllatif, M., Farhan, M. S., & Shehata, N. S. (2018). Overcoming business process reengineering obstacles using ontology-based knowledge map methodology. Future Computing and Informatics Journal, 3(1), 7-28. Ali, M. A., Hussin, N., Haddad, H., Alkhodary, D., & Marei, A. (2021). Dynamic Capabilities and Their Impact on Intellectual Capital and Innovation Performance. Sustainability, 13, 10028. Alkhodary, D. (2021). The impact of e-HRM on corporates sustainability: A study on the SMES in Jordan. International Journal of Entrepreneurship, 25(6), 1-15. Banerjee, S. B. (2018). Corporate sustainability and the environmental crisis: The need for a radical reorientation in strategy. Journal of Cleaner Production, 174, 820–834. https://doi.org/10.1016/j.jclepro.2017.10.224. Brundtland, G. H. (1987). Our common future: The World Commission on Environment and Development. Oxford University Press. Córdoba-Pachón, J. R., Escobar-Tello, M. C., & Sánchez- Serna, A. E. (2021). Social sustainability and employee retention in the Colombian hotel sector. Sustainability, 13(4), 2351. Falih, F., Kasim, R., Yaseen, M. H., & Salman, L. (2020). Business Processes Reengineering Using Operational Risk Management to Improving the Competitive Advantage in the Iraqi Banking Sector. Solid State Technology, 63(1). Fan, Y., Wang, L., Du, Y., & Wang, Y. (2021). The impact Pa ge 91 https://journals.e-palli.com/home/index.php/ajee Am. J. Environ Econ. 1(2) 79-91, 2023 of corporate sustainability on financial performance: Empirical evidence from China. Journal of Cleaner Production, 279, 123682. Jabr, G. M., & Shamkhi, H. M. (2023). The relationship between innovative digitization applications and financial decisions in the presence of cloud computing applied study in a sample of Iraqi banks-Journal of Administration and Economics, 1(138). Leung, X. Y., Chan, H. K., & Cheung, W. (2020). How social sustainability can contribute to organizational resilience: Lessons from the COVID-19 pandemic: Sustainability, 12(18), 7034. Maharmah, M. H., & Al Jbour, F. K. (2023). The Impact of Applying Reengineering Application Process on Critical Performance Criteria in Jordanian Islamic Banks. International Journal of Professional Business Review: Int. J. Prof. Bus. Rev., 8(6), 40. Nasser, A. L. Q. H., & Abdul-Redha, L. M. S. (2023). Reengineering banking processes and their impact in enhancing competitive advantage. Ahl Al-Bait Jurnal, 1(32). Poudel, S., Aryal, K. P., & Maraseni, T. N. (2021). Investigating the relationship between corporate sustainability and financial performance: Evidence from Australia. Journal of Cleaner Production, 280, 124324. Savitz, A. W., & Weber, K. (2014). The triple bottom line is how today’s best-run companies achieve economic, social, and environmental success and how you can. John Wiley & Sons. Thompson, S. K. (2012). Sampling (3rd ed.). Wiley. The United Nations. (2015). Sustainable Development Goals. Retrieved from https://www.un.org/ sustainabledevelopment/sustainable-development- goals/