MODERATING EFFECTS OF COUNTRY CHARACTERISTICS ON COMPETITIVE STRATEGIES AND COMPETITIVE ADVANTAGE AMONG INSURANCE FIRMS IN NAIVASHA KENYA
International Journal of Economics, Commerce and Management United Kingdom
The insurance business is a very competitive industry and like other business organizations, insurance firms constantly take a critical review of their competitive strategies and analysis. To gain competitive advantage insurance firms' must evaluate the characteristics of a country in which it operates so that it can establish the extent to which the insurance firm's can be effective and efficient in the market. Kenya's insurance industry is highly regulated with a relatively level playing
... level playing ground. In the hindsight some insurance firms have a competitive advantage measured in terms of a better performance in terms of the Gross Written Premium (GWP) than others. It therefore remains unclear whether the differences in performance of insurance firms can be explained by the strategies employed for competitive advantage. The general objective of the study was to evaluate the effects country specific characteristics on both competitive strategies and competitive advantage. The study is based on Michael Porters strategies model and targeted the branch staff of all the insurance firms in Naivasha Sub-county because these are the ones who ensure that the branches build their firms' competitive advantage. The study International Journal of Economics, Commerce and Management, United Kingdom Licensed under Creative Common Page 563 adopted both descriptive and census research designs where the entire population was studied. This sample size consisted of the total population of 30 respondents from the nine general insurance firms operating in Naivasha Sub-county. The results analysed from primary data established that country specific factors at (t) = 6.230, β= .648, p<.05.and product differentiation at (t) = 2.613, β= .301, p<.05 had a significant effect on the insurance firms' competitive advantage.