The Impact of Competitive Strategies on Performance of Banking Sector; The Mediating Role of Corporate Social Responsibility and Operational Excellence
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...
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| Format: | Article |
| Language: | English |
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MDPI AG
2022-12-01
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| Series: | Energies |
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| Online Access: | https://www.mdpi.com/1996-1073/16/1/297 |
| _version_ | 1827760750800666624 |
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| author | Larisa Ivascu Waqas Ali Rimsha Khalid Mohsin Raza |
| author_facet | Larisa Ivascu Waqas Ali Rimsha Khalid Mohsin Raza |
| author_sort | Larisa Ivascu |
| collection | DOAJ |
| description | 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. |
| first_indexed | 2024-03-11T10:02:55Z |
| format | Article |
| id | doaj.art-63032229669b4ca0994d265a1e58c2f3 |
| institution | Directory Open Access Journal |
| issn | 1996-1073 |
| language | English |
| last_indexed | 2024-03-11T10:02:55Z |
| publishDate | 2022-12-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Energies |
| spelling | doaj.art-63032229669b4ca0994d265a1e58c2f32023-11-16T15:17:16ZengMDPI AGEnergies1996-10732022-12-0116129710.3390/en16010297The Impact of Competitive Strategies on Performance of Banking Sector; The Mediating Role of Corporate Social Responsibility and Operational ExcellenceLarisa Ivascu0Waqas Ali1Rimsha Khalid2Mohsin Raza3Management Department, Politehnica University of Timisoara, 300006 Timisoara, RomaniaMirpur University of Science and Technology, Mirpur AJ&K, New Mirpur City 10250, PakistanFaculty of Hospitality and Tourism, Prince of Songkla University, Phuket Campus, Phuket 83120, ThailandFaculty of Hospitality and Tourism, Prince of Songkla University, Phuket Campus, Phuket 83120, ThailandThis 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.https://www.mdpi.com/1996-1073/16/1/297competitive strategiesCSR practicesfully-fledged Islamic banksIslamic window banksoperational excellenceperformance |
| spellingShingle | Larisa Ivascu Waqas Ali Rimsha Khalid Mohsin Raza The Impact of Competitive Strategies on Performance of Banking Sector; The Mediating Role of Corporate Social Responsibility and Operational Excellence Energies competitive strategies CSR practices fully-fledged Islamic banks Islamic window banks operational excellence performance |
| title | The Impact of Competitive Strategies on Performance of Banking Sector; The Mediating Role of Corporate Social Responsibility and Operational Excellence |
| title_full | The Impact of Competitive Strategies on Performance of Banking Sector; The Mediating Role of Corporate Social Responsibility and Operational Excellence |
| title_fullStr | The Impact of Competitive Strategies on Performance of Banking Sector; The Mediating Role of Corporate Social Responsibility and Operational Excellence |
| title_full_unstemmed | The Impact of Competitive Strategies on Performance of Banking Sector; The Mediating Role of Corporate Social Responsibility and Operational Excellence |
| title_short | The Impact of Competitive Strategies on Performance of Banking Sector; The Mediating Role of Corporate Social Responsibility and Operational Excellence |
| title_sort | impact of competitive strategies on performance of banking sector the mediating role of corporate social responsibility and operational excellence |
| topic | competitive strategies CSR practices fully-fledged Islamic banks Islamic window banks operational excellence performance |
| url | https://www.mdpi.com/1996-1073/16/1/297 |
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