dc.description.abstract |
The inability of commercial banks to attain sustainable competitive advantage that can
be defended over time and that which competitors are unable to imitate have exposed
banks to survival challenges in their operating environment. Commercial banks have
been struggling to sustain their competitive advantage possibly due to stiff competition,
bad debts, internal & external frauds and inability to retain their strategically talented
employees. The purpose of this study was to analyze the moderated mediation of
organizational justice and employee engagement on the relationship between talent
management practices and sustainable competitive advantage of commercial banks in
Nairobi County in Kenya. The specific objectives of the study were: - to establish the
effect of talent management practices on sustainable competitive advantage, the
mediating effect of employee engagement and the moderating effect of organizational
justice. The research was anchored on the resource based view theory supported by
Herzberg's motivation and/Hygiene theory and the Equity theory. Positivism research
philosophy and explanatory research design was adopted. Simple random sampling
technique was used, and 5-point likert scale questionnaires were employed in collecting
data from the 42 commercial banks with a target population of 3,098 employees and a
sample size of 354 employees. Descriptive and inferential statistical techniques were
used to analyze data. Pearson correlation analysis was used to check for the associations
between the study variables, and hierarchical multiple regression analysis was used to
test the hypotheses at a .05 significance level. The results showed a significant direct
effect of talent management practices (β=.566, p=.000), employee engagement (β=.216,
p=.000) and organizational justice (β=.101, p =.001) on sustainable competitive
advantage. Organizational justice moderated the relationship between talent
management and employee engagement (β=.104, p=.000, ∆R2=.0127), and between
talent management and sustainable competitive advantage (β=-.814, p =.000,
∆R
2=.0101). There was a positive & significant complementary partial mediation of
employee engagement (β=.118, bootstrap lower limit =.067, bootstrap upper limit =
.179). Moderated mediation of organizational justice on the indirect relationship
between talent management and sustainable competitive advantage via employee
engagement was positive and significant (β=.0261, bootstrap lower limit =.0005,
bootstrap upper limit=.0527). The study findings is of great importance to
academicians, students, scholars and bank management as it informs them on the
effectiveness of talent management practices, employee engagement and organizational
justice in achieving sustainable competitive advantage. The study concluded that a high
level of organizational justice enhances the relationship between talent management
practices and sustainable competitive advantage through employee engagement. It is
critical for bank managers to consider developing and implementing responsible talent
management practices, alongside highly engaged employees and organizational justice
strategies that promote fairness, transparency, justice, equity, respect, dignity and
civility to make employees realize their full potential for sustainable competitive
advantage. Further research should be done in the context of other sectors and the effect
of the dimensions of organizational justice in enhancing sustainable competitive
advantages by applying structural equation modelingThe inability of commercial banks to attain sustainable competitive advantage that can
be defended over time and that which competitors are unable to imitate have exposed
banks to survival challenges in their operating environment. Commercial banks have
been struggling to sustain their competitive advantage possibly due to stiff competition,
bad debts, internal & external frauds and inability to retain their strategically talented
employees. The purpose of this study was to analyze the moderated mediation of
organizational justice and employee engagement on the relationship between talent
management practices and sustainable competitive advantage of commercial banks in
Nairobi County in Kenya. The specific objectives of the study were: - to establish the
effect of talent management practices on sustainable competitive advantage, the
mediating effect of employee engagement and the moderating effect of organizational
justice. The research was anchored on the resource based view theory supported by
Herzberg's motivation and/Hygiene theory and the Equity theory. Positivism research
philosophy and explanatory research design was adopted. Simple random sampling
technique was used, and 5-point likert scale questionnaires were employed in collecting
data from the 42 commercial banks with a target population of 3,098 employees and a
sample size of 354 employees. Descriptive and inferential statistical techniques were
used to analyze data. Pearson correlation analysis was used to check for the associations
between the study variables, and hierarchical multiple regression analysis was used to
test the hypotheses at a .05 significance level. The results showed a significant direct
effect of talent management practices (β=.566, p=.000), employee engagement (β=.216,
p=.000) and organizational justice (β=.101, p =.001) on sustainable competitive
advantage. Organizational justice moderated the relationship between talent
management and employee engagement (β=.104, p=.000, ∆R2=.0127), and between
talent management and sustainable competitive advantage (β=-.814, p =.000,
∆R
2=.0101). There was a positive & significant complementary partial mediation of
employee engagement (β=.118, bootstrap lower limit =.067, bootstrap upper limit =
.179). Moderated mediation of organizational justice on the indirect relationship
between talent management and sustainable competitive advantage via employee
engagement was positive and significant (β=.0261, bootstrap lower limit =.0005,
bootstrap upper limit=.0527). The study findings is of great importance to
academicians, students, scholars and bank management as it informs them on the
effectiveness of talent management practices, employee engagement and organizational
justice in achieving sustainable competitive advantage. The study concluded that a high
level of organizational justice enhances the relationship between talent management
practices and sustainable competitive advantage through employee engagement. It is
critical for bank managers to consider developing and implementing responsible talent
management practices, alongside highly engaged employees and organizational justice
strategies that promote fairness, transparency, justice, equity, respect, dignity and
civility to make employees realize their full potential for sustainable competitive
advantage. Further research should be done in the context of other sectors and the effect
of the dimensions of organizational justice in enhancing sustainable competitive
advantages by applying structural equation modeling |
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