Evaluating the Long-Term Performance of Commercial Banks Based on the Sustainable Competitive Advantage Approach with Emphasis on the Role of Management Efficiency: An Approach Based on Comparing Public and Private Iranian Banks

The performance of the organization and ultimately its value is improved through activities that increase the critical factors of success. Managers with higher efficiency seem to seek to increase high performance and then maintain a stable competitive advantage among their competitors, and it is expected that management efficiency can affect the relationship between long-term bank performance and sustainable competitive advantage. Therefore, based on this argument, the purpose of this study is to provide a model for evaluating the long-term performance of commercial banks based on the approach of sustainable competitive advantage with emphasis on the role of management efficiency. The research hypothesis was tested using a sample consisting of 23 banks listed on the Tehran Stock Exchange during the years 1390 to 1397 and using a multivariate regression model. The obtained data were analyzed using Ives 10 software. Findings indicate that the identified factors evaluating the long-term performance of commercial banks such as financial performance (economic value added) and profitability indicators (Kyoto, return on assets and return on equity) affect the bank's sustainable competitive advantage. Also, management efficiency as a moderating role affects the relationship between long-term performance appraisal of commercial banks (economic value added, Kyoto, asset returns and equity returns) and the bank's sustainable competitive advantage. On the other hand, due to the fact that the rate of coefficients obtained from private banks is higher than state-owned banks, so in order to increase management efficiency, it is recommended that banks move towards privatization.