The Impact of Competitive Strategies on Performance of Banking Sector; The Mediating Role of Corporate Social Responsibility and Operational Excellence

Larisa Ivascu, Waqas Ali, Rimsha Khalid and Mohsin Raza ()
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Larisa Ivascu: Management Department, Politehnica University of Timisoara, 300006 Timisoara, Romania
Waqas Ali: Mirpur University of Science and Technology, Mirpur AJ&K, New Mirpur City 10250, Pakistan
Rimsha Khalid: Faculty of Hospitality and Tourism, Prince of Songkla University, Phuket Campus, Phuket 83120, Thailand
Mohsin Raza: Faculty of Hospitality and Tourism, Prince of Songkla University, Phuket Campus, Phuket 83120, Thailand

Energies, 2022, vol. 16, issue 1, 1-18

Abstract: This study examined the mediating role of corporate social responsibility practices and the nexus between the operational excellence of competitive strategies, and performance, for Islamic banks operating in Pakistan. Particularly, two competitive strategies, namely, the cost-sensitive strategy and the differentiation strategy were considered. This study employed a structured questionnaire to collect the data from 512 respondents (361 from fully-fledged Islamic banks, FFIBs, and 151 from Islamic window banks, IWBs). A partial least square–structural equation modeling approach was employed to test the hierarchal component model. As a robustness check, the Gaussian copula approach was used to address the endogeneity issue, and the Partial least square prediction-oriented segmentation approach was adopted to explore the unobserved heterogeneity. The findings showed evidence of complementary partial mediation between competitive strategies and bank performance, channeled through operational excellence. However, corporate social responsibility (CSR) practices partially mediated the relationship between cost-sensitive strategy and bank performance. This study is worthwhile for managers, policy makers and regulatory authorities concerned with religiously conscious corporations.

Keywords: competitive strategies; CSR practices; fully-fledged Islamic banks; Islamic window banks; operational excellence; performance (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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