DETERMINANTS OF SUSTAINABLE COMPETITIVE ADVANTAGE IN THE INSURANCE INDUSTRY IN KENYA

Abstract

The Kenyan insurance sector cannot be termed as sustainably performing based on the current statistics indicating poor performance trends. This is risky given the highly volatile environment of operation that requires strategies for competitive advantage.  This study thus established the determinants of sustainable competitive advantage in the insurance industry in Kenya focusing on strategic leadership, corporate culture, organizational resources and innovation. The study anchored on the theory of Transformational Leadership, Corporate Culture Theory of the Firm, Resource Based View Theory and Disruptive Innovation Theory. A descriptive research design was adopted and the target population was 165 respondents from the all the 55 insurance companies in Kenya. A structured questionnaire was adopted to collect quantitative data which was analysed through descriptive and inferential statistics using SPSS software, version 24. The study findings indicated that the insurance firms have adopted strategic leadership to a high extent and hence has a significant influence on sustainable competitive advantage. It was also established that even though corporate culture practices were implemented to a moderate extent in the insurance industry, its influence on sustainable competitive advantage was positive and significant. In addition, the firms have allocated organizational resources moderately and that has an insignificant influence on sustainable competitive advantage. Lastly, it was revealed that even though the insurance firms have adopted innovation to a moderate extent, its influence on sustainable competitive advantage was positive and significant. The study recommends a need for improvement in allocation and redeployment of resources so as to harness its significant influence. For the other factors, it was noted that some practices had been adopted to a moderate extent hence a recommendation to enhance its adoption in order to realize an even better influence.

Key Words: Strategic Leadership, Corporate Culture, Organizational Resources, Innovation, Sustainable Competitive Advantage, Insurance Industry