Innovation Strategies and Competitive Advantage of Insurance Firms in Kenya (original) (raw)
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The need for improved performance by insurance companies in Kenya in both life and non-life segments has been underscored and innovation has been identified as a means to boost performance. The main objective of this study was to determine the influence of innovation on performance of insurance companies in Kenya. The study adopted the use of a descriptive crosssectional design. A census survey was used with the study population comprising all 49 insurance companies operational in Kenya as at 31 st December 2014. Primary data was collected using structured questionnaires. Data was analyzed using SPSS statistical package program version 22 for descriptive and inferential statistics. The results of the study revealed that product innovation positively and significantly influences organizational performance (β=57271.822, t=2.423, p<0.05) and process innovation positively and significantly influences organizational performance (β=91651.229, t=2.485, p<0.05). No evidence was found for a significant relationship between market innovation and performance (β=20108.084, t=0.196, p>0.05). The results also showed that process innovation was the most predominant type of innovation in the insurance industry in Kenya. Additionally, the survey found that among the three types of innovation studied, process innovation registered the strongest correlation to organizational performance (coefficient value 0.584, 0.01 level of significance, and p value 0.001). The study recommends that management of insurance companies in Kenya should place greater emphasis on process innovation in order to improve performance. Further research should adopt a longitudinal research design, multiple informant approach, wider scope of study and the use of both objective and subjective measures to assess performance. These will give useful insight into the relationship between the variables under study.
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Annual Open Conference, 2019
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In spite of a growing body of literature on firm performance, explaining why firms in the same industry and markets differ in their performance remains a fundamental question within strategic management field. While some researchers have attributed these differences to the resources owned and controlled by firms, others have argued that resources alone do not explain the differences in the firms' performance. This debate still continues, hence providing room for further contributions. Underpinned by the postulations of resource based theory, dynamic capabilities theory and knowledge based theory; this study contributes to the debate. The study advances the proposition that resources influence performance through the intervening effect of innovation. The proposition is empirically tested using both primary and secondary data from 46 Insurance Companies in Kenya. The results reveal that both tangible and intangible resources have a statistically significant direct influence on non-financial performance despite mixed findings as regards to the independent effects of resources on various firm performance indicators. Innovation was found to have a statistically significant intervening influence on the relationship between resources and non-financial performance. The findings offer some support for the anchoring theories as well as partial support to previous similar studies. In spite of the inherent limitations, the study advances the frontiers of knowledge in confirming the anchoring theories while providing ground for policy direction and managerial practice.
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The insurance industry in Kenya has been in existence for decades. However, to this day, there is cutthroat competition among various players. Each player in the industry to have a greater share of the market. This has further been complicated by the low insurance penetration in the country. This research work focuses on effects of competitive strategies adopted by insurance companies to remain successful in an industry with a market that all players are struggling to achieve. The main purpose of the research is to establish the effects of strategies on competitiveness of insurance companies, specifically in Mombasa County. To achieve this, the research will be guided by the research question. These are how the focus strategy, cost leadership strategy, differentiation strategy and innovative strategy affect the competitiveness of insurance companies in Mombasa County. The descriptive research technique was used for this study. The population targeted for this research was be made up of 224 managers from the insurance companies and a stratified sampling technique was undertaken to come up with the sample. Data was collected through questionnaires and analyzed. Analysis was done quantitatively and qualitatively by use of descriptive statistics. These include frequency distributions, tables, percentages, mean mode, median etc. In addition, advance statistical techniques (inferential statistics) were considered. The results indicated that majority of the firms used focus or niche and market penetration strategies to create and sustain competitive advantage. They also indicated that all players depend on their quality of service and brand loyalty as their main sources of competitive advantage. Recommendations were made that the firms should investigate their managerial policies and practices to ensure they stand out among other key players in the industry. Further studies can be carried out to determine how firms can adopt and use the strategies that are not widely used in the industry to their advantage. The study can also be extended to other industries to see if the same strategies are used across other industries.
International Journal of Social Science and Humanities Research (IJSSHR) ISSN 2959-7056 (o); 2959-7048 (p)
The insurance sector has witnessed growth in both the corporate and private sectors driven by increased insurance uptake among corporations and individuals. However, despite the dynamic nature of the sector, some insurance firms face significant challenges in keeping up with their counterparts. To address the performance variations in the insurance sector, it is crucial to examine strategic capabilities such as technical knowledge, innovation, learning culture and service quality and their impact on performance of NSE listed firms in Kenya. This study aims to investigate how strategic capabilities influence the performance of these firms. The specific objectives of the study were: to examine the effect of innovation capability on the performance of NSE-listed insurance companies in Kenya; to determine the effect of service quality capability on the performance of NSE-listed insurance companies in Kenya; to investigate the effect of technical knowledge capability on the performance o...
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The purpose of the study was to investigate the effects of financial innovation on competitive advantages of telecommunication companies in Kenya. The study used survey co-relational research design. The target population for the study was comprised of 250 respondents. The study used both secondary data and primary data collected using questionnaires both structured and unstructured. Data reliability and validity was tested subsequent to the data collection. Quantitative data was analysed using descriptive statistics while qualitative data was analyzed using content analysis. The data collected was coded and analysed using the statistical package for social sciences (SPSS). The responses from the unstructured questions was organized into themes due to their qualitative nature and then coded appropriately for analysis. The study findings made the following conclusions and recommended on the same: telecommunications companies indicated growth through financial innovations that gave them a competitive advantage in the ICT (Information, Communication and Technology) field; financial innovation affects positively the performance of telecommunications companies to a great extent hence they are considered often important for developing services in the telecommunication companies giving them the competitive advantage in the telecommunications field; telecommunication companies have different aims of financial innovations that provide the companies with the competitive advantage. From the study the major objective of financial innovation is process evaluation and the dimensions of financial innovations were identified as product, service innovation and process innovation. From the study, product innovation was rated to a great extent having the greatest positive financial performance according to the organisation s objectives. v LIST OF ACRONYMS ATMs Automated Teller Machines