Business Innovation Strategies and Performance of Insurance Companies In Nyeri County, Kenya
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Date
2023-11
Authors
Mwangi, Joseph Githiri
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
A company's success is critical to the growth of the industry in which it operates and to the general health of the economy. Insurance businesses throughout the world have been losing ground in terms of profitability. The importance of innovation in a company's success has long been recognized. The purpose of this study was to establish the effect of business innovation strategies on performance of insurance companies in Nyeri County, Kenya. The objectives of the study were to establish the effect of market innovation, determine the effect of product innovations on performance and assess the effect of process innovations on performance. This study was anchored in the diffusion of innovation, resource based view and profit maximization theories. This study was descriptive in nature. The target population for this study comprised insurance companies in Nyeri County. Heads of departments was the respondents in the study. A census of all 28 insurance companies in Nyeri was conducted. Purposive sampling was used to sample respondents in the study. In this study the researcher purposively sampled 5 managers including the branch managers, operation mangers, finance managers, marketing managers and information and communication technologies (ICT) managers. This study therefore had 140 respondents. For data collection, a questionnaire as used. Face, content and construct validity were ensured in this study. A pre-test was used to assess reliability in the study in which Cronbach's alpha was used to gauge reliability. Univariate, bi-variate and multivariate analysis were conducted on the data. Descriptive statistics and multiple regression analysis were used in analysis of data using SPSS. Tables were used to display results. A high level of market innovation among insurance companies in the sample was found. Product innovation was carried out to a moderate extent in insurance companies in the sample. In addition, process innovations in the study were implemented to a large extent among the insurance companies in the study. Business innovation strategies were strongly correlated (r=0.726) with performance of insurance companies whereby 52.7% of the performance of insurance companies could be attributed to business innovation strategies. Regression analysis also showed that market innovation (p<0.01) and process innovation(p<0.01) were significant. It was concluded that business innovations strategies have a positive influence on performance through market and process innovations. It was recommended that There is a need for insurance companies to have a customer relationship management strategy as well as a product development management program.
Description
A Research Project Submitted in Partial Fulfillment of the Requirement for the Award of Masters of Business Administration (Strategic Management Option) of Kenyatta University, November, 2023
Keywords
Business Innovation Strategies, Performance, Insurance Companies, Nyeri County, Kenya