Talent Management Practices and Perceived Sustainable Competitive Advantage of the Kenya’s Commercial Banks in Nairobi County: Interaction Effect of Organizational Justice

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. The purpose of this study was to analyze the interaction effect of organizational justice on the relationship between talent management practices and perceived sustainable competitive advantage of commercial banks in Nairobi County in Kenya. The research was anchored on the resource based view theory, positivism research approach and explanatory research design. Additionally, 5-point Likert scale structured questionnaires were employed in collecting data from a sample size of 354 given the 42 commercial banks with a target population of 3,098 employees. Given the moderation model by Hayes (2012), multiple regression analysis was used to test the hypothesis at a .05 significance level. The results showed that organizational justice moderated the relationship between talent management and perceived sustainable competitive advantage (β=.-.066, SE=0.025, p<.05). In the mod graph, it was evident that all the three study variables converged at the apex signifying that within the commercial banks in Nairobi County, talent management practices, and organizational justice forms part of the perceived sustainable competitive advantage. The study concluded that when talent is managed well among the employees, they become more competitive and become a strategic asset. Moreover, with the organizational justice in place, the relationship between talent management practices and perceived competitive advantage is enhanced. As a result, it is critical for bank managers to consider developing and implementing responsible talent management practices a long side organizational justice strategies that promote fairness, transparency, justice, equity, respect, dignity and civility to make employees realize their full potential for sustainable competitive advantage.