The strategic role of risk culture in enhancing innovation and non-financial performance: evidence from the insurance sector

Organizational culture plays a critical role in shaping innovation and performance, yet the specific contribution of risk culture, a vital subset of organizational culture, remains underexplored, particularly in emerging economies. This study investigates how risk culture influences innovation and non-financial performance in the Nigerian insurance sector. Drawing on Resource-Based Theory and Dynamic Capability Theory, we analyze survey data from 251 employees across multiple organizational levels using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings show that risk culture significantly enhances customer-based performance, internal business processes, and learning and growth. Moreover, innovation mediates the relationship between risk culture and both customer-based performance and internal processes, though not learning and growth. These results highlight risk culture as both a strategic resource and an enabling capability for innovation. This study contributes to the literature by extending resource-based theorizing to non-financial performance outcomes and offering practical guidance for fostering innovation and resilience in service-oriented industries.