Organizational resources, innovation and performance of insurance companies in Kenya
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Date
2015Author
Ombaka, Beatrice E
Machuki, Vincent, N
Awino, Zachary B
Wainaina, Gituro
Language
enMetadata
Show full item recordAbstract
In spite of a growing body of literature on firm performance, explaining why firms in the same
industry and markets differ in their performance remains a fundamental question within
strategic management field. While some researchers have attributed these differences to the
resources owned and controlled by firms, others have argued that resources alone do not
explain the differences in the firms’ performance. This debate still continues, hence providing
room for further contributions. Underpinned by the postulations of resource based theory,
dynamic capabilities theory and knowledge based theory; this study contributes to the debate.
The study advances the proposition that resources influence performance through the
intervening effect of innovation. The proposition is empirically tested using both primary and
secondary data from 46 Insurance Companies in Kenya. The results reveal that both tangible
and intangible resources have a statistically significant direct influence on non-financial
performance despite mixed findings as regards to the independent effects of resources on
various firm performance indicators. Innovation was found to have a statistically significant
intervening influence on the relationship between resources and non-financial performance. The
findings offer some support for the anchoring theories as well as partial support to previous
similar studies. In spite of the inherent limitations, the study advances the frontiers of
knowledge in confirming the anchoring theories while providing ground for policy direction and
managerial practice.
Citation
Ombaka, Beatrice E., Machuki, Vincent, N., Awino, Zachary B and Wainaina, Gituro (2015). Organizational resources, innovation and performance of insurance companies in Kenya. 1st DBA Africa Management Review International conference ( 2015). 2015;1(1).Publisher
University of Nairobi