Assessing the Moderating Role of Risk Management Capabilities in the Relationship Between Service Innovation and Financial Performance of Insurance Firms
Assessing the Moderating Role of Risk Management Capabilities in the Relationship Between Service Innovation and Financial Performance of Insurance Firms
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Date
2022-11-03
Authors
Yankson, Isaac Obeng Y
Kwaning, Emmanuel Addai
Pomegbe, Wisdom Wise Kwabla
Dogbe, Courage Simon Kofi
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Publisher
International Journal of Contemporary Economics and Administrative Sciences
Abstract
The study assessed the moderating role of risk management capabilities in
the relationship between service innovation and financial performance of insurance
firms. A survey research design was adopted, with a quantitative research approach.
The population of comprises life and non-life insurance companies in Ghana,
numbering 39. There were 17 insurance firms selected for the study, from which
161 management staff were drawn as respondents. Data was analyzed using
Structural Equation Modelling (SEM). The study concludes that, risk management
capability had a positive moderative effect on the relationship between service
innovation and financial performance of insurance companies in Ghana. This
notwithstanding, both service innovation and risk management capability had a
direct significant positive effect on financial performance of insurance firms. For
stronger financial position, firms should endeavor to invest in both service
innovation and effective risk management practices. The main contribution of this
study centers on the interactive effect of service innovation and risk management
capability. Although direct effects of service innovation and risk management, on
financial performance have been established in literature, the interactive effect of
these two predicting variables has not been well established in literature
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Citation
Yankson, I. O., Kwaning, E. A., & Dogbe, C. S. K. (2022). Assessing the moderating role of risk management capabilities in the relationship between service innovation and financial performance of insurance firms. International Journal of Contemporary Economics and Administrative Sciences, 12(1), 265-285.