Influence of Innovativeness on Organizational Performance among Insurance Companies in Kenya

This study sought to determine the influence of innovativeness on organizational performance among insurance companies in Kenya. The study adopted positivism research philosophy. Descriptive and explanatory research designs were used. The target population consisted of 453 management staff drawn from all the 55 registered insurance companies in Kenya. A sample size of 208 respondents drawn from lower, middle, and top level management was selected. Primary data was collected using semi-structured questionnaires containing both open and closed-ended questions. Data analysis was conducted using descriptive statistics such as mean score, frequencies and standard deviation and inferential analysis including regression and correlation analysis. The predictive power of the model was measured through R2 while the fitness of the model was measured through F-statistic. Hypothesis testing was based on P-value of the variable coefficient at 0.05 significance level. It was concluded that innovativeness had a significant influence on performance of insurance companies in Kenya. The study recommended that the management of insurance companies should ensure that they motivate their employees to introduce new business strategies from time to time, introduce new products and services on regular basis, introduce new technologies and stimulate new business processes. This will induce new business and better performance for the firm. Finally, the study suggested that other studies be conducted within the financial sector and other sectors in Kenya and among other insurance companies within the East African Community to determine if there are cross-border factors that influence the relationship between institutional competency mapping and performance of insurance companies