Dynamic Capabilities and Performance of Insurance Companies in Kenya

Purpose: The primary objective of the study was to investigate the effects of dynamic capabilities performance of insurance firms in Kenya. The specific goals was to establish the effects of integration, learning, sensing and technical and how they influence the performance of insurance industry in Kenya. Methodology: The study adopted a descriptive research design with a target population of 677 senior management employees from 55 insurance firms in Kenya. Purposive sampling technique applied to select a sample size of 250 management level employees from the total population.. Data was sourced collected using a questionnaire and analyzed using descriptive and inferential statistics. SPSS Version 23 statistical package was applied as data analysis tool. Diagnostic test was conducted to ensure the assumptions of the linear regression model are not violated. Findings: The study revealed the R2 value of 0.565 implying that 56.5% of the variations in the perceived performance can be explained by the variations in the dynamic capabilities while factors not studied in this research contribute 43.5% of the variance in the dependent variable. Multiple regression results indicated that integration capability (P=0.000), learning capability (P=0.013), sensing capability (P=0.001), and technical capability (P=0.000) all have a significant positive effect on the performance of insurance firms in Kenya. Unique Contribution to Theory, Practice and Policy: The study recommended that managers if insurance firms in Kenya should adopt technology integration partnerships with fintech firms to modernize their operations. The study recommends marketing and distribution strategies that involve coordination and utilizing one another's distribution networks to reach a larger audience. The study recommended that an insurance company in Kenya prioritize a culture of continuous learning, promote knowledge sharing, give access to resources, and guarantee leadership commitment in order to develop strong learning capabilities within the company. Lastly, the study found that credit dynamic capabilities explains 56.5 % of the performance of insurance firms in Kenya. This study therefore suggests that further studies be conducted on other factors affecting the performance of these insurance firms to establish the 43.5% of the factors affecting performance for insurance firms in Kenya.