The impact of competitive strategy dimensions (cost leadership and innovative differentiation) on banks' profitability

Abstract

The primary objective of this study is to investigate the impact of competitive strategy dimensions cost leadership and innovative differentiation on the profitability of banks in the Iraqi. The sample includes 113 top managers (CFOs and CEOs) from financial instantiations (banks) listed with the Central Bank of Iraq. A quantitative research approach was adopted, and data collection occurred in two phases. In the first phase, 135 usable survey was retrieved from the 152 distributed. Partial Least Squares (PLS) analysis was used to test the research constructs. The findings revealed that innovative differentiation has a significant and positive impact significant on banks’ profitability. However, the cost leadership strategy showed no significant effect on profitability.

Keywords

• profitability
• competitive strategy
• banks
• cost leadership
• innovative differentiation

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