Organizational learning and performance of insurance firms in Kenya

Abstract

Organizational learning is increasingly becoming a key source of competitive advantage for many firms, allowing them to cope with increasing organizational and technological complexities that have emerged in the global market environment. This lies against a backdrop of increasing desire for process and technological innovations, superior human resource practices, team learning besides higher organizational and leadership styles toward realizing increased organizational performance. The focus of this study is on establishing the extent of organizational learning in insurance firms in Kenya and how this impacts performance of the firms. A cross-sectional survey was used to obtain primary data in this study. The research used population data gathered by means of self administered questionnaires to the top management members of all the 47 insurance firms in Kenya. A total of 25 questionnaires were responded to by various companies. This data was analyzed using descriptive statistics which involved the use of standard deviations, means, frequencies and percentages. The findings of the study demonstrated empirical evidence of statistically significant, positive relationship between organizational learning and organizational performance. Organizational learning existed in the insurance firms in Kenya to a great extent with a mean of 3.63 contributing to an above average performance of the firms with a grand mean of 3.52. This illustrates the significance of learning to organizations since its outcomes are embedded on the organization‟s systems and cultures, and it contributes the attainment of the organization‟s goals and purposes.