Organizational Agility and Customer Satisfaction among Non- Life Insurance Companies in Nairobi City County, Kenya
Motum, Adams Lincolin
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The insurance sector contributes significantly to the growth of a country's economy by creating jobs and ensuring financial stability. Although this is the case, it has been reported that non-life insurance companies in Kenya have had issues with unresolved consumer complaints, insurance penetration, and client confidence. As a result, this study examined the effect of organizational agility on customer satisfaction in the context of non-life insurance companies in Nairobi City County, Kenya. The research focused on dexterity of information technology agility, human resource agility, and innovation agility in the satisfaction of their respective customers in non-life insurance companies within Nairobi City County, Kenya. Variables for this research were anchored on Resource based view, dynamic capabilities and dissonance theories The study population consisted of 28 non-life insurance companies that was observed through a sample survey of 133 from a population of 196. The methodology of the study was informed by descriptive research design. Data was obtained via a structured questionnaire. Face, content and construct validities were confirmed on the research instrument. Further, reliability of the research instrument was analyzed on the basis of Cronbach Alpha index constructed from observations gathered in a pilot study. Statistical interrogation of data involved the use of descriptive and inferential analysis. Whereas descriptive analysis focused on sample mean and sample standard deviation, inferential analysis encompassed correlation and regression analysis. Statistical results were displayed in figures and tables. The study revealed a moderate positive linear relationship between information technology agility and customer satisfaction. Additionally, linear regression analysis confirmed that information technology agility has positive effect on customer satisfaction. Most of the insurance firms paid strong emphasis on HRM practices that ensures employees have the update competences necessary in addressing customer demands as well as unexpected shifts that are reshaping the insurance sector. The study noted that through continuous innovation, insurance companies can adequately and timely respond to the customer preferences/demands thus fostering customer satisfaction. Evidently, innovation agility provided control and reduce uncertainty that could lessen customer satisfaction. It was concluded that information technology agility had positive influence on customer satisfaction, adoption of human resource agility in insurance companies promoted customer satisfaction and that innovation agility have positive influence on customer satisfaction, and most of the insurance companies had embraced innovation agility. It‟s therefore recommended that the managers in charge of information technology should strengthen programs on information technology sharing, and business process integration. Sufficient resources should be availed for consistently maintaining and upgrading the information technology infrastructure so as to be responsive to shift in information needs in an ever-changing business environment. Additionally, the management of non-life insurance companies in Kenya should embrace human resource measures that result in expanded staff knowledge, capacity and flexibility in the delivery of services. Such practices would include employee continuous development, quality remuneration programs, Internal communication protocol and work support procedures. Lastly, the executive team should embrace continuous innovation in service delivery process and product development. Services rendered should be tailored to match demand variation presented by different customer segments, thereby ensuring that there is efficiency and timely delivery of services in a manner that puts a control over customer uncertainties.