Moderating Effect of Institutional Factors on the Relationship Between Customer Relationship Management (CRM) and Competitiveness of Private Universities in Kenya

Abstract

This study examined the moderating effect of institutional factors on the relationship between Customer Relationship Management (CRM) strategies and the competitiveness of private universities in Kenya. The specific objectives were to assess the moderating effect of organisational culture, leadership commitment, institutional resources, staff buy-in, and technological readiness on the CRM–competitiveness relationship. The study was guided by CRM Theory, Relationship Management Theory (RMT), and the SERVQUAL model, which informed the interpretation of how institutional readiness shapes service quality, relational value, and institutional performance. A cross-sectional descriptive design was adopted. The target population comprised 36 private universities in Kenya, while the study sample included 204 respondents drawn from 17 universities using stratified, purposive, and convenience sampling. Data were collected using questionnaires, interviews, and focus group discussions. Quantitative data were analysed using descriptive and inferential statistics, while qualitative data were analysed thematically. Findings revealed that institutional factors significantly moderated the relationship between CRM strategies and competitiveness. Moderated regression and PROCESS Macro Model 1 confirmed that institutional support strengthens the CRM–competitiveness relationship with an interaction term (? = 0.162, p = .030). The model explained 63.2 per cent of the variance in competitiveness. The study concludes that CRM effectiveness depends on both technological systems and institutional readiness, particularly leadership, culture, and resource capacity. It recommends strengthening institutional capacity to fully leverage CRM for competitiveness in private universities.