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Empirical Analysis of the Impact of a Bank’s Size on the Level of Its Dynamic Capabilities

Author: Svetlana V. Orekhova, Cand. Sc. (Ec.), Associate-Prof. of Enterprises Economics Dept; Samat Sh. Gallyamov, Master of Economics

Abstract: The article presents an empirical study on assessing the impact of a bank’s size on the level of its dynamic capabilities. The analysis is based on comparative assessment of a particular bank and a market where it operates. The research assumes that the presence of dynamic capabilities allows the company to reconfigure available resources more successfully than generally in the market and consequently be more efficient than the market average. The paper tests the hypothesis about a mutual dependence of a company size (at the example of Russian banks) and its dynamic capabilities. It analyzed the activities of 10 banks in the Russian Federation with different sizes of assets and compared dynamic indicators of performance of each bank with the average indicators within the sector. The results did not reveal any significant and direct correlation between the size of a bank and its level of dynamic capabilities what refutes previous research on the subject.

Key words: dynamic capabilities of a bank; bank’s strategy; bank’s performance; bank’s size.