Effect of Positioning Strategies on Competitiveness of Health Insurance Providers in Kenya

Abstract

The purpose of this research was determining how positioning strategy affect the competitiveness of Kenyan health insurance companies. The study's foundations were the resources-based approach and Porter's (1980) theory of competitive advantage (RBV). A cross-sectional descriptive survey was used in this investigation. Since information was only gathered at one location, a cross-sectional design was adopted. There are 22 registered health/medical insurance companies in Kenya, according to the Association of Kenya Insurers (AKI), 2021. These people made up the study's sample, 22 in number. Tables, percentages, and proportions were used to show the data. Means, the standard deviation, and the coefficient of variation were used in descriptive statistics (COV). Simple regression analysis was used for inferential statistics. The results indicate that 37.8% of the variation in competitiveness of the firms was as a result of positioning strategies, while 62.2 % is attributed to other factors. Further, ANOVA analysis indicated that the effect of positioning strategies on competitiveness is not statistically significant, which means that in the context of these firms’ other factors were significantly involved in their competitiveness. In the final analysis, the model resulting from the analysis of coefficients show that a unit change in competitiveness is attributed to 0.422 units of positioning strategies. The author makes recommendations to policy and practice based on the findings. Top management of these companies can alter their policies to improve the strategic fit and competitiveness of the companies they lead. If companies in the sector want to achieve a high level of turnover in their books, they must devote greater resources to strategic positioning.