Agility Strategies and Competitive Advantage of Insurance Companies in Kenya

Abstract

Firms in today’s world face great environmental turbulence due to ever-evolving competition, changing technology, fluctuating demand and disruption in the supply chain caused by manmade or natural disasters among others (Long, 2012). High levels of environmental turbulence can paralyze a firm’s operations. The objective of this study was to determine the effects of agility strategies on competitive advantage of insurance companies in Kenya. The research study used a descriptive research design. The population for this study comprised all the 52 registered insurance companies in Kenya. The study took a census approach since the population was not large. The researcher used a questionnaire as the primary data collection instrument. The data collected was assessed and comparison made so as to select the most accurate and quality information from the feedback given by various respondents. The quantitative data was coded to enable the responses to be grouped into various categories. Descriptive statistics analysis was employed to analyse the quantitative data. The analysed data was interpreted in terms of averages and standard deviation using assistance of computer packages especially SPSS (version 22). The qualitative data were analysed using content analysis and presented in prose. This study conducted a regression analysis to establish the relationship between the variables in the study. Regression coefficient was used to determine the strength and the direction of the relationship between the dependent variable and the independent variable. The study found out that the insurance companies have put in place four major agility strategies namely; innovativeness, operation dexterity, total quality management and resource fluidity in order to improve its competitive advantage The researcher found out that human resource management and product design are total quality management strategies adopted by most of the insurance companies in Kenya affects to a great extent competitive advantage. The study findings also established that most companies are always pro-active and take the 1st step and also have flexible and easily adapts to changes in the environment in order to adjust its competitive a advantage.The study concludes that agility strategies affect competitive advantage of insurance companies in Kenya. The study further concludes that the insurance companies have put in place four major agility strategies namely; innovativeness, operation dexterity, total quality management and resource fluidity in order to improve its competitive advantage. It was clear that efficiency improvement and enterprise resourcing affects the competitive advantage of insurance companies to a great extent. The study also concludes that human resource management and product design are total quality management strategies that affect competitive advantage of insurance companies in Kenya to a great extent. The study finally concludes that insurance companies are always pro-active and take the first step and also have flexible and easily adapts to changes in the environment. This study recommended that formulation of appropriate agility strategies policies by the managers of insurance companies in order to adequately address the strategy needs. The study also recommends that managers of the insurance companies should embrace innovativeness strategies on a wider range among other strategies since it has a great effect on insurance companies’ competitive advantages than other strategies The study further recommends that human resource management and product design which are aspects of total quality management strategies they should be first considered when using total quality management strategy to build its competitive edge, these aspects have a great influence on the competitive advantage of insurance companies.