Influence of Strategic Oriention on Diversity of Top Management and Competitive Advantage of Insurance Companies

Jacqueline Odunga Opiyo, Zachary Bolo Awino and Kennedy Ogollah

International Journal of Business and Management, 2024, vol. 19, issue 4, 140

Abstract: Whereas strategy literature presents ambiguous findings on the influence of top executives on firm outcomes, there is mixed evidence that several other dynamics can come into play to enhance or downplay this relationship. This study sought to address this gap by interrogating whether strategic orientation would impact the connection between top management team diversity and competitive advantage of insurance companies based in Kenya. 54 companies targeted were subjected to a cross sectional survey and from this, 41 availed a senior executive to complete the research questionnaire presented. Data gathered was subjected to analysis with the aid of statistical software for social sciences and regression analysis applied to test hypotheses. The impact of strategic orientation was tested through the Baron and Kenny approach. The findings revealed that top manager diversity and strategic orientation affected competitive advantage despite not fully accounting for its variability. Additionally, strategic orientation presented a statistically significant effect and proved to be a moderator in the association between top management team diversity and competitive advantage. These findings implied that policy makers and practitioners take guidance on the importance of designing teams with diverse members that can front effective strategies for market competitiveness. The results backed the perspectives in the upper echelon and resource advantage view since it established that when teams have diverse members and calculated strategic positions, they have the capability to attain competitive advantage. The study recommended that future studies take into consideration a longitudinal approach that enables observation and analysis of relationship among variables for a considerable duration.

Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:ibn:ijbmjn:v:19:y:2024:i:4:p:140

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