Effect of Technology on the Performance of Insurance Companies in Kenya
Abstract
The objective of this study was to determine the effect of technology on performance
in insurance companies in Kenya. The study was anchored on the resource
dependence theory and the resource-based view. The descriptive cross-sectional
survey design was used in the study. The population comprised of all insurance
companies in Kenya. There were 54 registered insurance companies in Kenya as at
31st Dec 2019 according to IRA. Data collection was by use of a questionnaire which
was administered to the marketing manager of each company or equivalent manager
who was thought to be a custodian of relevant information relating to the study. Data
collected was analyzed and summarized using mean and standard deviation. Further
testing was done by use of regression analysis to establish the relationship between
technology and performance. The study found that application of technology leads to
enhanced performance whereby document management systems is the most widely
used technology process (Mean= 4.856). This is probably explained by the fact that
all the other processes are premised on document management. Customer
management systems, business process management systems and financial
management systems were also indicated to be highly used by insurance companies.
The analysis of variance indicates that the relationship between application of
technology on performance is statistically significant (P Value is less than 0.05). The
conclusion is that increasing application of technology leads to enhanced
performance. It is recommended that longitudinal studies be carried out on the effect
of technology on performance. It is also recommended that a similar study be
designed within the context of manufacturing environments.
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
- School of Business [1411]
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