Core competencies and competitive advantage of insurance firms in Kenya

Abstract

This study focused on the strategic role of core competencies on competitive advantage as applied by insurance companies in Kenya. The first step was to identify what the various insurance companies considered to be their core competencies. The other objective was to find out whether the identified core competencies are used by insurance firms to gain or achieve a competitive advantage. The research was conducted through a survey and primary data was collected through structured questionnaires which were distributed to all insurance firms licensed to operate insurance business in the Kenyan market. The data collected was presented by a Likert scale and analyzed using statistical tools such as means, percentages and frequency distribution tables and graphs. The findings revealed that although different insurance firms have different areas which they consider as their core competencies, there is a significant relationship between core competencies and competitive advantage. The study also showed that the core competencies had a significant impact on competitive advantage. It was further noted that once insurance firms achieve a competitive advantage, which is considered as success, they sustain the success by proper use of their known competencies