The Influence of Innovation Strategies on the Performance of Private Insurance Firms in Ethiopia
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Date
2020-10
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A.A.U
Abstract
It is currently thought that in this competitive era, innovation is part of the strategy implementation that enhances firm performance through enhancing esteem expansion and hazard decrease. And assessing current innovation strategies, and understanding the influence of Innovation strategy towards the firm performance is important. The purpose of this study was to investigate the influence of Innovation Strategies on the performance of private insurance firms in Ethiopia. The study was used quantitative research method and employs survey design to achieve the research objectives. For achieving the study objective, 165 sample branches of private insurance companies of Ethiopia were selected through simple random sampling technique. Accordingly, to collect data from sample branch managers the researcher was used self-administered closed-ended questionnaire. Out of 165 managers, workable data were obtained from 158 of them. Those data, then, were analyzed through descriptive statistics and inferential analysis. The research was to identify the influence of the implementation of overall innovation strategy and the four components of innovation strategies (Process Innovation strategy, Technological Innovation strategy, Product Innovation Strategy and Marketing Innovation Strategy) on insurance firm performance. The finding of descriptive statistics revealed that the mean score for overall innovation strategy is at the highest point in the average in the companies. From the four components of innovations strategy, Marketing Innovation Strategy, Product Innovation Strategy and Technological Innovation strategy were felled at the highest point of in the midpoint, whereas, Process Innovation strategy was the item that felled the lowest point of the average in the companies. And also the current level of insurance Firm performance was at the high level in the average in the companies. The correlation analysis result showed that there is a significant positive influence of the implementation of overall innovation strategy on the insurance firm performance in the companies. Moreover, the inferential analysis evidenced that the implementation of overall innovation strategy is predictor of insurance firm performance in the companies. It is also found that only marketing innovation strategy has a significant positive influence on insurance firm performance; whereas, all other components of innovation strategies have no significant influence on insurance firm performance in the companies. On the basis of the research findings, appropriate conclusions and recommendations along with implications for further studies were forwarded.
Description
A Thesis Submitted to College of Business and Economics, Department of Management of Addis Ababa University in Partial Fulfilment of the Requirements for the Masters of Business Administration (MBA) in Management
Keywords
Firm Performance, Innovation Strategy, Insurance Company