The main objective of this study is to investigate whether banks with similar resources requirements will achieve better performance through balancing the pressures of competition and legitimacy. Past studies on strategic management found that differentiation reduces competition whilst past studies on population ecology and institutional theory found that conformity enhances legitimacy. Therefore, organizations seem to face conflicting pressures. This study provides empirical support to the theory of 'Strategic Balance' which stresses that a balanced approach to differentiation and conformity enhances their performance. Organizations seeking competitive advantage should be as different as legitimately possible.