Agility Strategies and Competitive Advantage of Insurance Companies in Kenya
Abstract
Firms in today’s world face great environmental turbulence due to ever-evolving
competition, changing technology, fluctuating demand and disruption in the supply
chain caused by manmade or natural disasters among others (Long, 2012). High levels
of environmental turbulence can paralyze a firm’s operations. The objective of this
study was to determine the effects of agility strategies on competitive advantage of
insurance companies in Kenya. The research study used a descriptive research design.
The population for this study comprised all the 52 registered insurance companies in
Kenya. The study took a census approach since the population was not large. The
researcher used a questionnaire as the primary data collection instrument. The data
collected was assessed and comparison made so as to select the most accurate and
quality information from the feedback given by various respondents. The quantitative
data was coded to enable the responses to be grouped into various categories.
Descriptive statistics analysis was employed to analyse the quantitative data. The
analysed data was interpreted in terms of averages and standard deviation using
assistance of computer packages especially SPSS (version 22). The qualitative data
were analysed using content analysis and presented in prose. This study conducted a
regression analysis to establish the relationship between the variables in the study.
Regression coefficient was used to determine the strength and the direction of the
relationship between the dependent variable and the independent variable. The study
found out that the insurance companies have put in place four major agility strategies
namely; innovativeness, operation dexterity, total quality management and resource
fluidity in order to improve its competitive advantage The researcher found out that
human resource management and product design are total quality management
strategies adopted by most of the insurance companies in Kenya affects to a great
extent competitive advantage. The study findings also established that most
companies are always pro-active and take the 1st step and also have flexible and
easily adapts to changes in the environment in order to adjust its competitive a
advantage.The study concludes that agility strategies affect competitive advantage of
insurance companies in Kenya. The study further concludes that the insurance
companies have put in place four major agility strategies namely; innovativeness,
operation dexterity, total quality management and resource fluidity in order to
improve its competitive advantage. It was clear that efficiency improvement and
enterprise resourcing affects the competitive advantage of insurance companies to a
great extent. The study also concludes that human resource management and product
design are total quality management strategies that affect competitive advantage of
insurance companies in Kenya to a great extent. The study finally concludes that
insurance companies are always pro-active and take the first step and also have
flexible and easily adapts to changes in the environment. This study recommended
that formulation of appropriate agility strategies policies by the managers of insurance
companies in order to adequately address the strategy needs. The study also
recommends that managers of the insurance companies should embrace
innovativeness strategies on a wider range among other strategies since it has a great
effect on insurance companies’ competitive advantages than other strategies The
study further recommends that human resource management and product design
which are aspects of total quality management strategies they should be first
considered when using total quality management strategy to build its competitive
edge, these aspects have a great influence on the competitive advantage of insurance
companies.
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
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