Digital Entrepreneurship and Performance of the Insurance Industry Sector in Kenya
DOI:
https://doi.org/10.53819/81018102t6026Abstract
The insurance industry in Kenya has become very competitive due to the shrinking demand of noncompulsory insurance products and negative perception by the general public. To ensure improved organization performance, insurance companies have to adopt the use of technology like use of mobile technology, information communication technology platforms, information systems, online services platforms, electronic advertising and risk analysis. This study therefore sought to assess the effect digital entrepreneurship on performance of insurance companies in Kenya. The study was guided by the following specific objectives; to assess the effects of Technological Evolution on performance of insurance companies in Kenya, to establish the effects of digital business processes on performance of insurance companies in Kenya, to determine the effects of marketing technology on performance of insurance companies in Kenya, and to find out the effects of e-procurement transformation on performance of insurance companies in Kenya. The study was anchored on diffusion of innovation theory, dynamic capabilities theory, evaluation theory, and value chain theory. This study used a descriptive research design. The unit of analysis was the 55 insurance companies in Kenya while the unit of observation was top management employees. The study adopted census technique. The study selected a pilot group of 10 middle level managers from the target population. Data collected was both quantitative and qualitative in nature. Data analysis was done with use of SPSS version 25 and presented using percentages, tabulations, among other techniques. The qualitative data analysis was done by use of content analysis and was presented in prose form. The study employed a multivariate regression model to study the relationship between the dependent variable and independent variable. The study concludes that technological evolution has a positive and significant influence on performance of insurance companies in Kenya and that digital business processes has a positive and significant influence on performance of insurance companies in Kenya. Further, the study concludes that marketing technology has a positive and significant influence on performance of insurance companies in Kenya and that e-procurement transformation has a positive and significant influence on performance of insurance companies in Kenya. This study therefore recommends that the management of insurance companies in Kenya should ensure the embrace the latest technology to facilitate organization performance. In addition, the management of insurance companies in Kenya should ensure adoption of digital marketing strategies to market their products hence improving their market share.
Keywords: Digital Entrepreneurship, Performance, Insurance
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