MODERATING ROLE OF STRATEGIC CAPABILITIES ON THE RELATIONSHIP BETWEEN CORPORATE GOVERNANCE AND COMPETITIVENESS OF INSURANCE COMPANIES IN ELDORET TOWN, KENYA
Abstract
This study was designed to assess the moderating role of strategic capabilities on the Relationship between of corporate governance and competitiveness of insurance companies in Uasin Gishu County, Kenya. The study was guided by the following specific objectives; to find out the Relationship between ethical leadership and competitiveness of insurance companies, to analyze the Relationship between communication strategies and competitiveness of insurance companies in Eldoret town Kenya and to determine the moderating role of strategic capabilities on the relationship between of corporate governance and competitiveness of insurance companies in Eldoret Town, Kenya. In a bid to effectively achieve these objectives, the study adopted an explanatory cross-sectional design based on samples drawn from across the insurance companies in Eldoret town. The target population was 352 insurance companies’ employees. A multi-stage sampling technique was adopted where stratified random sampling was used to select the insurance companies after which simple random sampling was used to select respondents within the insurance companies .The study used Morgan table (1970) formula to calculate the sample size which was 186 respondents from the target population of 352 respondents. Data was collected by use of questionnaire which was self-administered. Data was analyzed by use of both inferential and descriptive statistics using SPSS version 25. From the study findings correlations among the corporate governance practices were significant. With a moderator the variables jointly explained 61.6 % (R2= 0.616) variation in competitiveness of insurance companies. Beta values for ethical leadership (.511) and communication strategies (.408) were also positive. The study concluded that strategic capabilities significantly influences the relationship between corporate governance and competitiveness of insurance companies. The management of insurance companies should pay high premiums in formulating and implementing corporate governance practices in tune with strategic capabilities to effectively enhance their competitiveness. The findings would be of significance to various stakeholders in the insurance industry for the sustainable development and body of knowledge by widened horizons of existing knowledge on the corporate governance and competitiveness of insurance companies.
Key words: Strategic Capabilities, Corporate Governance and Competiveness
CITATION: Korir, I. K., Akuku, C., Kimutai, G., & Onyango, R. (2020). Moderating role of strategic capabilities on the relationship between corporate governance and competitiveness of insurance companies in Eldoret Town, Kenya. The Strategic Journal of Business & Change Management, 8 (1), 35 – 54.
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DOI: http://dx.doi.org/10.61426/sjbcm.v8i1.1891
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