Waqas Ali, Imran Ibrahim Alasan, Mushtaq Hussain Khan & T. Ramayah
The purpose of this study is to examine the effect of business strategies (low-cost and differentiation) on the performance of Fully-Fledged Islamic Banks (FFIBs) andconventional banks with Islamic windows (Islamic window banks). In order to go deeper, the mediating role of enterprise risk management practices and moderating role of managerial expertise is also explored. To this end, partial least square-structural equation modeling and multi-group analysis is employed to compare and test the hypothesis for both types of banks. The disjoint two-stage approach is used to assess the hierarchical component model and the judgmental sampling method is employed to collect data from 247 FFIBs and 250 Islamic window banks. The results reveal that there is no significant difference for the effect of low-cost strategy and differentiation strategy toward performance between both banks. Further, no difference for the mediating role of enterprise risk management practices between business strategies and performance is observed. Besides, significant difference is found for the moderating role of managerial expertise between the ERM practices and performance.