Effects of digitalization on growth of life insurance firms listed in the Nairobi Securities Exchange in Kenya
The purpose of this study was to examine the effects of digitalization on growth of life insurance firms listed in the Nairobi Securities Exchange in Kenya. To achieve this purpose, the study was guided by three specific objectives which were to; determine the influence of internal efficiency on growth of life insurance firms in Kenya, establish the effect of external opportunities on growth of life insurance firms in Kenya, and determine the effects of disruptive changes on growth of life insurance firms in Kenya. The study was based on the Competence-based theory of the firm, Porters Five forces theory, and Disruptive innovation theory. A descriptive survey research design was adopted where the target population was 5 life insurance firms listed at the Nairobi Stock Exchange make up the units of observation. The units of analysis in the study were 105 management staff consisting of chief executives officers, department heads, line managers, and team leaders. Census sampling approach was used to have the final sample size of 105 respondents from which 86 respondents were reached. The data was collected using a structured questionnaire which was pilot tested among a sample of 5 respondents to determine its reliability. The data was analyzed using descriptive and inferential statistics where the Pearson’s r correlation indicated positive and significant association between disruptive changes and external opportunities as dimensions for digitalization on growth of life insurance firms. However, the internal efficiency dimension of digitalization did not have any association with growth of life insurance firms. The study concludes that internal efficiency does not have any effects on life insurance firms’ growth. The study thus concludes that external opportunities and disruptive changes in the insurance industry influence firm growth. The study therefore recommends that life insurance firms should develop a digitalization strategy which is based on the market changes in the industry so that the model can be used to respond to these market changes and therefore enhance the internal processes of the firm. That life insurance firms should design their digitalization models to enhance user experience because this will result in enhanced customer loyalty thus sustaining their market share and contributing to their overall growth. That life insurance firms should reward innovation in the company since this will motivate staff to create and come up with new life insurance products and services that can create new market segments which may result in competitive advantage of the firm.