International Journal of

ADVANCED AND APPLIED SCIENCES

EISSN: 2313-3724, Print ISSN: 2313-626X

Frequency: 12
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 Volume 12, Issue 2 (February 2025), Pages: 91-100

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 Original Research Paper

Impact of high and low-level capabilities on bank performance

 Author(s): 

 Mehdi Younes Garrab 1, 2, *, Abdelkarim Yahyaoui 1, 3

 Affiliation(s):

 1College of Business, University of Jeddah, Jeddah, Saudi Arabia
 2Higher Institute of Management, University of Sousse, Sousse, Tunisia
 3Faculty of Law, Economics, and Management Sciences, University of Jendouba, Jendouba, Tunisia

 Full text

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 * Corresponding Author. 

  Corresponding author's ORCID profile: https://orcid.org/0000-0002-4791-3590

 Digital Object Identifier (DOI)

 https://doi.org/10.21833/ijaas.2025.02.010

 Abstract

This study uses the resource-based view of the firm as a theoretical framework to examine the effect of high-level and low-level bank capabilities on market performance. A typology of bank capabilities was developed using an input/output approach to assess these capabilities. An empirical analysis was conducted on Tunisian deposit banks listed on the stock market. The data envelopment analysis (DEA) method was used to estimate the banks' capacities. The findings reveal that high-level bank capabilities are the key factors driving superior and sustainable performance. Additionally, the study confirms that horizontal coherence, achieved through aligning certain low-level capabilities, has a significant positive impact on bank performance.

 © 2025 The Authors. Published by IASE.

 This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).

 Keywords

 Bank capabilities, Market performance, Resource-based view, Horizontal coherence, Data envelopment analysis

 Article history

 Received 18 September 2024, Received in revised form 8 January 2025, Accepted 25 January 2025

 Acknowledgment

No Acknowledgment.

 Compliance with ethical standards

 Conflict of interest: The author(s) declared no potential conflicts of interest with respect to the research, authorship, and/or publication of this article.

 Citation:

 Garrab MY and Yahyaoui A (2025). Impact of high and low-level capabilities on bank performance. International Journal of Advanced and Applied Sciences, 12(2): 91-100

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 Tables

 Table 1 Table 2 

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