Influence of E-business Strategies on the Performance of Insurance Companies in Nairobi County Kenya

Abstract

The objective of this study was to examine the influence of e-business strategies on performance of insurance companies in Nairobi Kenya. The independent variables for the study were; information systems, information technology platform functionalities, mobile phone technology, online delivery of services, advertisement and automated risk analysis. The dependent variable for this research was firm performance. A descriptive cross-sectional research design was applied. The population of the study was 55 insurance companies in Nairobi County. 45 Insurance companies filled and returned the questionnaire representing a response rate of 81%. Data was analysed using descriptive statistics; frequencies, percentages, means and standard deviation. Inferential statistics was also done through multiple linear regression. The multiple linear regression analysis enabled the research to determine the overall influence of the e-business strategies on firm performance. Further analysis revealed that; IT platform functionalities, mobile phone technology and advertisement had positive coefficient with insurance companies performance while information systems, online delivery of services and automated risk analysis had negative beta coefficient with performance. The analysis was carried out at 95% confidence levels and the results suggested that there existed significant relationship between the e-business strategies and performance of insurance firms in Nairobi Kenya. The study recommends insurance companies to invest in IT infrastructure and develop processes that leverage technology. The firms need to collaborate with digital services providers to enable them store and market their products and services in the digital space and employees need to be provided with adequate training on how to operate and discharge their duties using e-business platforms.