Effect of Service Capabilities on Competitive Advantage of Insurance Companies in Kenya
Abstract
The main objective of the study was to establish the effect of service capabilities on
competitive advantage of insurance companies in Kenya. Service capabilities were
represented by the front office capabilities and the back-office capabilities on competitive
advantage of insurance firms. The research was anchored on two theories, namely; Dynamic
capability theory and the Resource Capability Theory. The research adopted a cross-sectional
descriptive research design with the population of the study being 55 insurance firms
operating in Kenya. A questionnaire was the data collection instrument while the data was
analysed using descriptive measures of mean and standard deviation. The study found that
front office capability, with a regression coefficient of 0.420, has a positive effect and
significant effect the insurance firm’s competitive advantage. In regard to the back-office
capabilities, the findings suggest that it has a positive and significant effect on competitive
advantage of insurance firms (β=0.873, p=0.873). On overall effect of service capability on
competitive advantage, the study established that both front office and back-office
capabilities explains 63.0% of the competitive advantage. The study recommends that
insurance firms should devise ways of strategizing front office and Back office departments
to realize more effective results on competitive advantage outcome. The study further
recommends that employees should, on routine basis, subject their employees to training in
order to equip them with fresh knowledge on service capabilities both at front door and back
door. The study further recommends that customer satisfaction surveys should be undertaken
on continuous basis to assess the extent of satisfaction and build on the feedback from the
customers
Publisher
University of Nairobi
Subject
Insurance Companies in KenyaRights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
- School of Business [1342]
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