EFFECT OF INNOVATION PRACTICES ON ORGANIZATIONAL PERFORMANCE IN HEALTH INSURANCE SERVICE PROVIDERS IN KENYA

Abstract

This study sought to establish the effect of innovation practices on organization performance in health insurance service providers in Kenya. The specific objectives were to establish the effect of process innovation and market innovation on organization performance in health insurance service providers in Kenya. The descriptive research technique was used for this study. The population that was targeted for this research was made up of 224 managers from the health insurance service providers and a stratified sampling technique was undertaken to come up with the sample. Questionnaires were used to obtain primary data and they were close-ended questions. Analysis was done quantitatively and qualitatively by use of descriptive statistics. The study revealed that Process innovation enhance quality of products and services in insurance companies , process innovation enhance product innovation in insurance companies, innovation plays a crucial role in fulfilling market needs in insurance companies , market innovation leads to opening up new markets in insurance companies. The study concluded that implementation of process innovation and market innovation had a positive effect on organizational performance in health insurance service providers in Kenya. The study recommended that , strategic innovations should be encouraged and firms should continuously look for superior processes and market innovations for competitive advantage. Innovation strategies alone are not sufficient to lead to competitive advantage but the Health insurance service firms should also invest more in research and development so as to be able to innovate more. Key words: process innovation, market innovation, organizational performance in and health insurance service providers   CITATION: Kiarie, A. N., & Lewa, E. (2019). Effect of innovation practices on organizational performance in health insurance service providers in Kenya. The Strategic Journal of Business & Change Management, 6 (1), 623 – 636.