Innovation strategy and organization perfomance

Abstract

In the insurance industry strategies for innovation goes beyond or further the technological innovation field to strategies of attracting new and maintaining clients. The competition in the industry requires comprehension of companies’ selection of innovation strategies influence on various strategies for innovation on firm innovation performance. The objectives of the study was to determine relationship among creation of organization culture strategy, innovative organization structure strategy, innovative technology capabilities strategy and innovative customer relationships strategy and organization performance of insurance companies. Moreover, the target population for this study was 648 different levels of Management staff of CIC Insurance Company Ltd. Further, stratified random sampling design was used to sample 247 employees from CIC insurance group. In addition, the research utilized primary data that was gathered using a questionnaire as the research instrument. The study employed descriptive statistics. The four-hypothesis formulated for this study was tested using, regression analysis, Pearson’s correlation and Analysis of Variance (ANOVA), with the aid of Statistical Package for Social Sciences (SPSS). The quantitative data was analyzed using descriptive and inferential statistics additionally, regression analysis was used to establish the nature of the relationship between dependent and independent variables and study hypotheses tested. The results shown that there exist a weak insignificant positive correlation between creative organization culture strategy and organizational performance r(207),=.048,p=.489>.05. The results suggest the relationship between the two variables. Significant and positive moderate correlation between innovation organization structure strategy and organization performance 𝑟(207), = .232, 𝑝 = .001. Significant and positive moderate correlation between Innovation technology capabilities strategy and organization performance 𝑟(207), = .208, 𝑝 = .003. Exist adverse (negative) correlation between customer relationship strategy and organization performance 𝑟(207), = −.017, 𝑝 = .807 > 0.05. The results confirms that there is no correlation between innovative customer relationship strategy and organization performance. In conclusion the study noted that innovation strategy is a critical factor aimed at improving organizational performance and long- term success. The study recommended need for implementing creative organizational culture strategy which is a vital for influencing organizational performance. Secondly, need for adopting innovative organizational structure strategy being a major driver of growth and critical factor in gaining competitive advantage. Finally, implementation of innovative customer relationship. Finally, the study focused on single cooperative insurance companies.