Strategic Resource Alignment and Competitive Advantage of Insurance Companies in Kenya
DOI:
https://doi.org/10.47941/jbsm.3068Keywords:
Human Resource Alignment, Financial Resource Alignment, Technological Resource Alignment, Competitive AdvantageAbstract
Purpose: This study examined the influence of strategic resource alignment on competitive advantage among insurance companies in Kenya. Specifically, the study focused on the alignment of human, financial, and technological resources with strategic objectives.
Methodology: The study adopted a descriptive research design targeting 168 senior managers including general, HR, and finance managers from all 56 licensed insurance companies in Kenya, using a census approach. Data was collected using structured questionnaires, and a pilot test was conducted to assess reliability and validity. Analysis was conducted using SPSS version 26 and employed both descriptive and inferential statistics.
Findings: Findings indicated that strategic human resource alignment had a moderate, positive, and statistically significant relationship with competitive advantage (r = 0.450, p < 0.05), accounting for 20.3% of the variance (R² = 0.203). Regression analysis revealed that this strategic human resource alignment accounted for 20.3% of the variance in competitive advantage (R² = 0.203). The regression coefficient (β = 0.567, t = 5.794, p < 0.05) supported the significant influence of HR alignment. Similarly, strategic financial resource alignment had a strong, positive, and statistically significant influence (r = 0.532, p < 0.05), explaining 28.3% of the variance (R² = 0.283). Regression results showed that financial resource alignment explained 28.3% of the variance in competitive advantage (R² = 0.283). The regression coefficient (β = 0.570, t = 7.224, p < 0.05) confirmed the strong and significant impact. Strategic technological resource alignment also demonstrated a moderate and significant influence (r = 0.489, p < 0.05), accounting for 23.9% of the variance (R² = 0.239). Regression results revealed it accounted for 23.9% of the variance in competitive advantage (R² = 0.239). The regression coefficient (β = 0.427, t = 6.446, p < 0.05) further confirmed its positive and significant influence.
Unique Contribution to Theory, Practice and Policy: The study recommends that insurance companies enhance competitiveness by adopting strategic HR practices, structured financial planning, and investment in appropriate technologies. It further calls for regulatory and industry-level support in the form of capacity building, policy frameworks, and innovation promotion to reinforce strategic alignment efforts.
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