Bridging market orientation and leadership through digital enablement: A strategic model for life insurance success
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DOIhttp://dx.doi.org/10.21511/ins.16(1).2025.04
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Article InfoVolume 16 2025, Issue #1, pp. 42-53
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Digital transformation is critical in driving competitive success, particularly in Indonesia’s life insurance industry, which faces challenges in adopting effective digital strategies to address operational inefficiencies and declining customer engagement. This study aims to investigate the mediating role of Digital Enablement in the relationship between Market Orientation, Transformational Leadership, and Life Insurance Performance in Indonesia. A quantitative design was employed, using Structural Equation Modeling (SEM) with SmartPLS to analyze data collected from a census of 54 senior executives from life insurance companies in Indonesia, gathered through structured questionnaires. The findings reveal that both Market Orientation and Transformational Leadership significantly foster Digital Enablement, which, in turn, enhances Life Insurance Performance. However, the direct effects of Market Orientation and Transformational Leadership on Life Insurance Performance were found to be insignificant, emphasizing the critical role of Digital Enablement as a mediator. While Market Orientation and Transformational Leadership contribute to Digital Enablement, their impact on performance outcomes is mainly indirect, reinforcing the role of digital tools in improving operational efficiency, customer engagement, and business growth.
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JEL Classification (Paper profile tab)G22, O33, M10, M15
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References31
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Tables7
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Figures2
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- Figure 1. Research model
- Figure 2. Measurement model result
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- Table 1. Respondents’ demography
- Table 2. Convergent validity and reliability
- Table 3. Fornell-Larcker criterion
- Table 4. Heterotrait-Monotrait (HTMT) ratio
- Table 5. Path coefficients and hypothesis testing
- Table 6. R² and F² values for model explanatory power and predictor effect sizes
- Table 7. Mediation effects
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