We argue that collective engagement can serve as a unique value‐creation capacity at the business level by linking shared vision and service performance. We also propose that competitive intensity will be a market indicator by which management can enhance the effect of shared vision on collective engagement, and indirectly strengthen service performance (through collective engagement). Furthermore, we argue that this distinctive value‐creation capability, embedded in collective engagement, generates competitive advantage; specifically, one that competing organizations will struggle to replicate. We examine our moderated‐mediation model by using a three‐time‐point method derived from five different sources in 198 retail‐service branches. Our findings indicate that collective engagement, fueled by shared organizational vision, improves service performance. Furthermore, as this conditional indirect effect of shared vision on service quality and customer satisfaction was solely generated through collective engagement rather than other mechanisms (i.e., commitment and involvement), it creates a competitive advantage for engagement‐oriented organizations.

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