Dynamic Capabilities and Competitive Advantage of Insurance Companies in Kenya

Abstract

The project aimed at determining the effect of dynamic capabilities as the basis for competitive edge among Kenyan insurance companies; and to determine the influence of dynamic capabilities and the competitive advantage of insurance companies in Kenya. The piece utilized a cross-sectional descriptive design. Target population comprised of fifty one Insurance firms in Kenya. Semi-structured research feedback form was employed to gather first-hand information. The obtained data was scrutinized via descriptive statistics used included mean scores, ratios and percentages. The study found out that dynamic capabilities positively enhance the competitive advantages for Insurance companies in Kenya. The predictor parameters that were under consideration contribute significantly to competitive advantage. An implication for this is that the predictor components contribute significantly to the competitive advantages while random variations and other factors not considered in this research explain other variables that contribute to competitive advantage of insurance industry. The study recommends that organizations should seek to acquire competitive advantages so as to improve organizational performance through increasing customer base, asset quality, quality of service and increased market share. The study recommends that organizations should focus on adopting organizational dynamic capabilities so as to improve organizational performance. The study results also indicated that a firm is expected to analyze the dynamics of each strategy to be able to quickly respond to changes in environment during the formulation of its competitive strategies. This entails the construction and retention of capabilities and resources needed to prosper and compete well. A rival firm is expected to assess and determine the company’s functional area that contributes greatly in guaranteeing a company’s competitive edge.