<![CDATA[Digital transformation has increased banks’ reliance on software, yet its operational efficiency consequences remain inconclusive because implementation quality and organizational capability differ across institutions. This study examines the effect of information technology investment on bank operational efficiency and tests firm size as a moderating variable. The sample comprises 26 banking companies listed on the Indonesia Stock Exchange during 2021–2025, yielding 130 balanced-panel observations selected through purposive sampling. Information technology investment is proxied by the natural logarithm of capitalized software book value, operational efficiency by the operating expenses to operating income ratio (BOPO), and firm size by the natural logarithm of total assets; non-performing loans and the loan-to-deposit ratio are included as controls. Fixed-effects panel regression with company-clustered robust standard errors is employed. Information technology investment has a negative and significant effect on BOPO (β = −0.171707; p = 0.047), indicating improved efficiency. However, the interaction between technology investment and firm size is not significant (β = −0.018114; p = 0.612). Thus, asset scale does not determine the efficiency benefit of software investment. Banks should prioritize integration quality, process redesign, and measurable technology utilization rather than relying solely on organizational size.]]>
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