Competitive positioning and market share of selected insurance companies: case of Nigeria

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The insurance industry contributes to the smooth running of the economy. Unfortunately, not every country develops insurance at a high level; that is, the level of insurance penetration is low. This is happening in Nigeria. Therefore, this study aims to establish the effect of competitive positioning on the market share of selected insurance companies in Lagos State, Nigeria. The study adopts a survey research design. A structured instrument was used for data collection using the modified six-point Likert-type scale. The questionnaire was divided into three sections (about respondents’ demographic factors, competitive positioning, and market share). The population was 2,183 management-level employees from the 20 selected insurance companies. The sample size of 507 was determined using stratified random sampling and proportionate method. Test-retest method was used to validate the instrument, while the reliability was determined through internal consistency method. The Cronbach Alpha coefficients ranged from 0.71 to 0.88. Response rate of 86.7% was achieved. Descriptive and inferential statistics were used for analysis. Findings reveal that competitive positioning components have a significant effect on market share (Adj.R2 = 0.194, F(5. 434) = 22.097, p < 0.05). The results demonstrate that if all the competitive positioning components were set to zero, the market share of selected insurance companies in Lagos State would be 6.537, which is a positive value. Thus, competitive positioning components significantly affect market share. As a result, this study found that insurers would benefit from increasing their focus on developing the strategic asset and research and development aspects of competitive positioning to expand their market share.

Acknowledgments
The researchers acknowledge the contributions of the anonymous reviewers for the useful comments in making the article better. We acknowledge the management of the University that made it mandatory for the supervisee to publish two articles from their thesis, one in the name of the supervisor as the lead author, while another in the name of the supervisee as the lead author. The research assistants are acknowledged for the cooperation during the field work and the management of the insurance companies engaged for the study. The inputs of the supervisors are greatly acknowledged.

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    • Table 1. KMO and Bartlett’s test for each variable in the research instrument
    • Table 2. Reliability coefficients
    • Table 3. Descriptive statistics analysis for continuous improvement
    • Table 4. Descriptive statistics analysis for strategic leadership
    • Table 5. Descriptive statistics analysis for the strategic asset
    • Table 6. Descriptive statistics analysis for product differentiation
    • Table 7. Descriptive statistics analysis for research & development
    • Table 8. Descriptive statistics analysis for market share
    • Table 9. Summary of multiple regression analysis for the effect of competitive positioning components on market share of selected insurance companies in Lagos State, Nigeria
    • Conceptualization
      Ajetunmobi Ololade A., Adesoga Adefulu, Nwankwere Idowu
    • Data curation
      Ajetunmobi Ololade A., Adesoga Adefulu
    • Formal Analysis
      Ajetunmobi Ololade A., Makinde Grace Olubisi
    • Investigation
      Ajetunmobi Ololade A., Makinde Grace Olubisi, Nwankwere Idowu
    • Methodology
      Ajetunmobi Ololade A., Adesoga Adefulu, Makinde Grace Olubisi
    • Project administration
      Ajetunmobi Ololade A., Adesoga Adefulu, Makinde Grace Olubisi, Nwankwere Idowu
    • Resources
      Ajetunmobi Ololade A., Adesoga Adefulu, Makinde Grace Olubisi
    • Visualization
      Ajetunmobi Ololade A., Makinde Grace Olubisi, Nwankwere Idowu
    • Writing – original draft
      Ajetunmobi Ololade A., Makinde Grace Olubisi
    • Writing – review & editing
      Ajetunmobi Ololade A., Adesoga Adefulu, Makinde Grace Olubisi, Nwankwere Idowu
    • Supervision
      Adesoga Adefulu, Makinde Grace Olubisi
    • Validation
      Adesoga Adefulu, Makinde Grace Olubisi, Nwankwere Idowu
    • Software
      Makinde Grace Olubisi, Nwankwere Idowu