IDEAS home Printed from https://ideas.repec.org/a/bcp/journl/v6y2022i12p614-618.html
   My bibliography  Save this article

Effects of Digital Adoption on Performance of Insurance Companies in Kenya

Author

Listed:
  • Florence Mueni

    (University of Nairobi, Kenya)

  • Caren Angima

    (Department of Business Administration, University of Nairobi, Kenya)

Abstract

Technology, innovation and digitalization have been of benefit to a greater extent for organizations to achieve competitive advantage. Moreover, digital adoption is necessary as it enables firms to cope with changing needs of customers in the dynamic environment and has positive impacts in terms of customer satisfaction, faster service delivery, profit growth, consistency and processes improvements. The purpose of this study was to determine the effect of digital adoption on performance of insurance firms in Kenya. The specific objectives of the study were; to establish the extent of digital adoption by insurance firms and to establish the relationship between digital adoption and performance of insurance firms in Kenya. This study was guided by the technology adoption theory and the innovation diffusion theory. The study used descriptive research design and a census approach was adopted to target all the 54 insurance firms in Kenya as at December, 2020. Descriptive statistics were used to determine the extent of digital adoption in line with process, product and service while inferential statistics was undertaken using a regression analysis. The study established that there is a relationship between digital adoption and performance of insurance firms in Kenya, with digital adoption positively and significantly influencing performance of the insurance firms. The study concludes that digitalization enables the insurance firms to upgrade their processes, make product improvements and discharge quality services to their clients. The study recommends that insurance firms continually invest in technology and keep up with new innovations in order to enhance processes, products and service delivery to customers in order to improve company performance.

Suggested Citation

  • Florence Mueni & Caren Angima, 2022. "Effects of Digital Adoption on Performance of Insurance Companies in Kenya," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 6(12), pages 614-618, December.
    • Handle: RePEc:bcp:journl:v:6:y:2022:i:12:p:614-618
    as

    Download full text from publisher

    File URL: https://www.rsisinternational.org/journals/ijriss/Digital-Library/volume-6-issue-12/614-618.pdf
    Download Restriction: no
    File URL: https://www.rsisinternational.org/virtual-library/papers/effects-of-digital-adoption-on-performance-of-insurance-companies-in-kenya/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. W. Edwards Deming, 2000. "Out of the Crisis," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262541157, December.
    2. Changiz Valmohammadi & Azadeh Servati, 2011. "Performance measurement system implementation using Balanced Scorecard and statistical methods," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 60(5), pages 493-511, June.
    3. Changiz Valmohammadi & Azadeh Servati, 2011. "Performance measurement system implementation using Balanced Scorecard and statistical methods," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 60(5), pages 493-511, June.
    4. Gunday, Gurhan & Ulusoy, Gunduz & Kilic, Kemal & Alpkan, Lutfihak, 2011. "Effects of innovation types on firm performance," International Journal of Production Economics, Elsevier, vol. 133(2), pages 662-676, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tedjo Soelaksono & Achmad Sudiro & Mintarti Rahayu & Sudjatno Sudjatno, 2018. "The Influence of Capability Managerial on Competitiveness of the Company through the Planning Strategy, Investment, Innovation and Performance of the Company (a Study on Corporate Manufacturing Indust," International Review of Management and Marketing, Econjournals, vol. 8(2), pages 22-32.
    2. Tohru Yoshioka-Kobayashi & Tomofumi Miyanoshita & Daisuke Kanama, 2020. "Revisiting incremental product innovations in the food-manufacturing industry: an empirical study on the effect of intellectual property rights," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 9(1), pages 1-19, December.
    3. Frida Thomas Pacho, 2018. "Diversified Network Effects on Innovation Performance in Tanzania: Innovation Strategy in Service Firms," Journal of Entrepreneurship and Business Innovation, Macrothink Institute, Journal of Entrepreneurship and Business Innovation, vol. 5(1), pages 1-1, December.
    4. Alam, Ashraful & Uddin, Moshfique & Yazdifar, Hassan & Shafique, Sujana & Lartey, Theophilus, 2020. "R&D investment, firm performance and moderating role of system and safeguard: Evidence from emerging markets," Journal of Business Research, Elsevier, vol. 106(C), pages 94-105.
    5. Avner Engel & Shalom Shachar, 2006. "Measuring and optimizing systems' quality costs and project duration," Systems Engineering, John Wiley & Sons, vol. 9(3), pages 259-280, September.
    6. Stéphanie Camaréna, 2021. "Engaging with Artificial Intelligence (AI) with a Bottom-Up Approach for the Purpose of Sustainability: Victorian Farmers Market Association, Melbourne Australia," Sustainability, MDPI, vol. 13(16), pages 1-28, August.
    7. Rubio-Andrés, Mercedes & Ramos-González, Mª del Mar & Sastre-Castillo, Miguel Ángel & Gutiérrez-Broncano, Santiago, 2023. "Stakeholder pressure and innovation capacity of SMEs in the COVID-19 pandemic: Mediating and multigroup analysis," Technological Forecasting and Social Change, Elsevier, vol. 190(C).
    8. Hassan Arabshahi & Hamed Fazlollahtabar, 2018. "Classifying Innovative Activities Using Decision Tree and Gini Index," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 15(03), pages 1-14, June.
    9. Cam Caldwell & Do Truong & Pham Linh & Anh Tuan, 2011. "Strategic Human Resource Management as Ethical Stewardship," Journal of Business Ethics, Springer, vol. 98(1), pages 171-182, January.
    10. Dimitrios Kafetzopoulos & Evangelos Psomas, 2016. "ORGANISATIONAL LEARNING, NON-TECHNICAL INNOVATION AND CUSTOMER SATISFACTION OF SMEs," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(03), pages 1-28, April.
    11. Wondifraw Mihret Dessie & Gojjam Ademe Mengistu & Tigist Abera Mulualem, 2022. "Communication and innovation in the performance of weaving and pottery crafts in Gojjam, Ethiopia," Journal of Innovation and Entrepreneurship, Springer, vol. 11(1), pages 1-22, December.
    12. Başak Dalgıç & Burcu Fazlıoğlu, 2021. "Innovation and firm growth: Turkish manufacturing and services SMEs," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 11(3), pages 395-419, September.
    13. Kong YuSheng & Masud Ibrahim, 2020. "Innovation Capabilities, Innovation Types, and Firm Performance: Evidence From the Banking Sector of Ghana," SAGE Open, , vol. 10(2), pages 21582440209, May.
    14. Justin Doran & Geraldine Ryan, 2016. "The Importance of the Diverse Drivers and Types of Environmental Innovation for Firm Performance," Business Strategy and the Environment, Wiley Blackwell, vol. 25(2), pages 102-119, February.
    15. Boudreaux, Christopher, 2019. "Do private enterprises outperform state enterprises in an emerging market? The importance of institutional context in entrepreneurship," MPRA Paper 93039, University Library of Munich, Germany.
    16. repec:ipg:wpaper:2014-488 is not listed on IDEAS
    17. Stanley Ibeku, 2018. "Organisational Learning, Innovation And Performance Of Technology Start-Ups In Lagos, Nigeria," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 22(03), pages 1-15, April.
    18. Nguyen Thi Canh & Nguyen Thanh Liem & Phung Anh Thu & Nguyen Vinh Khuong, 2019. "The Impact of Innovation on the Firm Performance and Corporate Social Responsibility of Vietnamese Manufacturing Firms," Sustainability, MDPI, vol. 11(13), pages 1-14, July.
    19. Thi Thu Tra Pham & Thai Vu Hong Nguyen & Son Kien Nguyen & Hieu Thi Hoang Nguyen, 2023. "Does planned innovation promote financial access? Evidence from Vietnamese SMEs," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 13(2), pages 281-307, June.
    20. Khorshed Alam & Adewuyi A. Adeyinka, 2021. "Does innovation stimulate performance? The case of small and medium enterprises in regional Australia," Australian Economic Papers, Wiley Blackwell, vol. 60(3), pages 496-519, September.
    21. Rim Zouari‐Hadiji, 2023. "Financial innovation characteristics and banking performance: The mediating effect of risk management," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(2), pages 1214-1227, April.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bcp:journl:v:6:y:2022:i:12:p:614-618. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Pawan Verma (email available below). General contact details of provider: https://www.rsisinternational.org/journals/ijriss/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.