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

Abstract

Relational social capital plays a critical role in enhancing competitive advantage of most companies across the globe. However, there is scanty literature indicating how social capital affects competitive advantage of life assurance companies. This study sought to establish the effect of relational social capital on competitive advantage of life assurance companies in Kenya. The study collected primary data using a questionnaire from 356 senior management employees in all the 25 life assurance companies in Kenya. The study utilized both descriptive and inferential statistics. Descriptive statistics comprised of measures of central tendency and measure of dispersion while inferential statistics comprised of multiple linear regression model. The data collected was analyzed using Statistical Package for Social Scientists (SPSS) version 27. The study results indicated that relational social capital has a significant influence on the competitive advantage of life assurance companies in Kenya (β = 0.842, t = 13.152, p < 0.05). The study findings led to the conclusion that relational social capital influenced competitive advantage by having mutual respect at multiple levels and collaborating to diagnose and solve problems. Moreover, the study concluded that employees at the life assurance companies interacted and exchanged ideas with other employees from different areas of the companies. The life assurance companies also provided social support when employees faced any difficulties at work or when employees faced difficulties at a personal level. The study, based on the findings, recommends to management of life assurance companies to institute and implement policies and practices that enable interdepartmental interactions and exchange of ideas. Moreover, management in the companies should continuously undertake reskilling to ensure that even when working under strenuous and ever-changing environment, employees share the same professional language and business values.