Moderating Role of Management Commitment on the Value Co-creation Relation with Achievement of Competitive Advantage in Kenyan Financial Institutions

Abstract

This study objective was to assess the moderating role of management commitment on co-creation and the achievement of competitive advantage in the financial services sector in Kenya. The theories that informed the co-creation were Dialogue, Access, Risk Assessment and Transparency (DART) and Payne’s Models, with positivism as the philosophy informing the methodology. The research design used was descriptive cross-sectional with a sample size of 340 managers working in financial institutions. A multi-stage sampling approach was used to attain the respondents in all the three clusters of financial service sectors in Kenya. The response rate was 92%, and the collected data attained the statistical assumptions for the multi-linear regression model. The result showed the management commitment as moderating variable significantly moderates value co-creation relation and the competitive advantage, R² = 0.645, F (1, 297) =38.951, p-value <.05 with significant coefficient value of Management commitment (β = .366 t = 6.241, p<.05). The study reaffirms the importance of management commitment in the collaboration engagement as a catalyst to increased organizational performance and as a source of competitive advantage.