Influence of Structural Social Capital on Competitive Advantage in Life Assurance Companies in Kenya

Abstract

Competitive advantage has become an important determinant of survival for life assurance companies in the increasingly dynamic and competitive business environment. The purpose of this study was to explore the influence of structural social capital on sustained competitive advantage in life assurance companies in Kenya. The study population comprised 3,250 middle-level and top-level management employees in all the 25 life assurance companies in Kenya and primary data was gathered from a sample of 356 using a questionnaire. The study used both descriptive and inferential statistics. Descriptive statistics included means and standard deviations while inferential statistics involved the use of a linear regression model. The study results portray that structural social capital had a significant and positive influence on the competitive advantage of life assurance firms in Kenya (β = 0.804, t = 12.634, p < 0.05). The study concludes that having network relations that help in the transfer of knowledge, and social ties between workers in the life assurance companies helps to leverage communication efficiency. The study also concludes that structural social capital influence competitive advantage through having very strong ties between networks in the life assurance companies, and having a high degree of closeness between employees in the social networks. The study, based on the findings, recommends to management of life assurance companies to formulate and adopt policies that enable network relations that help in the transfer of knowledge. Besides, management should enable social ties between workers in the companies to leverage communication efficiency among employees.