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Effect of Innovation Strategy on Performance of Insurance Industry in Kenya

Author

Listed:
  • Teresa Wangai

    (PhD Candidate, Jomo Kenyatta University of Agriculture and Technology;)

  • Dr Paul Kariuki

    (Lecturer, Jomo Kenyatta University of Agriculture and Technology;)

  • Dr Blandina Kori

    (Lecturer, Catholic University of East Africa;)

  • Dr Peter Ngatia

    (Lecturer, Jomo Kenyatta University of Agriculture and Technology;)

Abstract

The study examined the effect of innovation strategy on performance of insurance industry in Kenya with firm size as the moderating variable. Innovation was operationalized by; product innovation, process innovation and business model innovation. The study was anchored on innovation diffusion theory and resource-based theory. The study employed descriptive cross sectional research design. The target population was 504 top and middle managers from all the 56 insurance companies licensed by insurance regulatory authority by year 2023. The study adopted stratified random sampling technique, with a sample size of 218. Primary data was collected using semi- structured questionnaires. Secondary data was collected on return on asset (ROA), return on equity (ROE), customer satisfaction index (CSI), total sales, total assets and market share. Pearson’s correlation coefficient was used to indicate the direction of relationship between variables. Multiple regression analysis was used to explain the nature of relationship between variables, F- statistics was used to decide the suitability of the model and beta coefficients to for test hypothesis while R2 was used to determine the model goodness of fit. The study findings indicated that innovation strategy had a positive significant effect on performance of insurance industry (p

Suggested Citation

  • Teresa Wangai & Dr Paul Kariuki & Dr Blandina Kori & Dr Peter Ngatia, 2025. "Effect of Innovation Strategy on Performance of Insurance Industry in Kenya," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(5), pages 1241-1254, May.
    • Handle: RePEc:bcp:journl:v:9:y:2025:issue-5:p:1241-1254
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    References listed on IDEAS

    as
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    3. Peter Bogetoft & Lene Kroman & Aleksandrs Smilgins & Anders Sørensen, 2024. "Innovation strategies and firm performance," Journal of Productivity Analysis, Springer, vol. 62(2), pages 175-196, October.
    4. Sajid Mohy Ul Din & Arpah Abu-Bakar & Angappan Regupathi, 2017. "Does insurance promote economic growth: A comparative study of developed and emerging/developing economies," Cogent Economics & Finance, Taylor & Francis Journals, vol. 5(1), pages 1390029-139, January.
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