STRATEGIC INNOVATION AND PERFORMANCE OF THE INSURANCE SECTOR IN NAIROBI COUNTY, KENYA
Keywords:Innovation strategies, Insurance firms, Product innovation, Technology innovation, Performance
The general objective of this study was to determine the effect of innovation strategies on performance of insurance firms in Nairobi County, Kenya. The specific objectives were; to determine effect of product innovation and technology innovation on performance of insurance firms in Nairobi City County, Kenya. The study was based on innovation theory of entrepreneurship and technology acceptance theory. The study employed descriptive research design. The study targeted the 56 insurance firms and 280 departmental heads. Yamane (1973) sampling formula was used to get a sample of 165 departmental heads. The researcher employed a stratified purposive sampling technique. The various departments served as strata. Primary data was collected using questionnaires. The pilot test was carried out with 17 staff representing 10% of the sample. The study employed content validity. Reliability was tested using Cronbach Alpha coefficient. Statistical Package for Social Science (SPSS) version 28 was used for analysis. Descriptive statistics were used to describe the main features of the entire set of data collected while Inferential statistics were used to draw conclusions from the representative sample. Findings were tabulated and interpreted using a multiple regression showing the relationship between the independent variables to the dependent variable cited on the topic. Findings showed that there is a strong significant relationship between product innovation and firm performance (r=0.502, p=0.000), and a conservative relationship between technology innovation and firm performance (r=0.378, p=0.000). The recommendations are; the management should make efforts to ensure that the staff who introduce successful ideas are rewarded, insurance companies should focus on empowering research and development sector through availing sufficient resource at their disposal, and the management of insurance firms to consider partnership with insurance technology startup(insurtech) companies to improve performance.