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This paper aims to examine the impact of corruption on bank stability and bank profitability separately for Islamic banks as well as conventional banks. Moreover, it also investigates whether the existence of Islamicity and corruption in the environment can moderate the Islamic banks-stability and Islamic banks-profitability relationships.

Sample of the study consists 136 banks comprising 70 Islamic and 66 conventional banks over the period 2015–2021 from nine countries with dual banking systems. Panel data fixed effect estimator with year effects is used to estimate the results.

Results of the study show that Islamicity is positively and corruption is negatively related to bank stability as well as bank profitability. Further, it is found that the effect of corruption is significantly different between Islamic and conventional banks, wherein conventional banks are more adversely affected than Islamic banks. However, an insignificant difference between Islamic and conventional banks is observed in the case of Islamicity.

The study provides theoretical and practical implications. On theoretical side, the study presents Islamicity as more reliable measure of religiosity based on Islamic values that can help in control of corruption by moderating corruption-bank stability nexus especially in dual banking economies which have high share of Muslim population. On practical side, the study recommends policy and operational measures for mitigating corruption aiming bank stability.

The results of this study contribute to the corruption-finance, religion-finance and dual banking literature. This study suggests that regulators and bank management must consider corruption and Islamicity while formulating their policies for better bank performance/stability.

Learning capability improves knowledge resources fosters innovative capabilities and firm competitiveness. The study aims to examine the human resource management (HRM) practice and employee creativity relationship using organizational learning capability (OLC) as a mediating variable.

Data were collected from 67 small-sized and 96 medium-sized firms. Confirmatory factor analysis was applied to establish construct validity and reliability. Structural equation modeling was used to evaluate the proposed model and hypotheses.

The results show that performance appraisal and employee creativity were positively related. Employee participation and employee creativity were positively related. Compensation and employee creativity were nonsignificantly related. OLC mediates the performance appraisal and employee creativity relationship. Similarly, OLC mediates the employee participation and employee creativity relationship. However, OLC did not mediate the compensation and employee creativity relationship.

Due to the research’s SME focus and cross-sectional data, the finding’s generalizability will be constrained.

The findings of the study would be useful to policymakers, stakeholders and management of SMEs in developing a supportive learning climate that promotes experiential and continuous learning cultures to ensure strategic capabilities, sustainable competitive advantage and innovativeness.

The study contributes to the extant literature on OLC, HRM practices and employee creativity by empirically evidencing that OLC mediates the performance appraisal, employee participation and employee creativity relationship.