Bridging market orientation and leadership through digital enablement: A strategic model for life insurance success

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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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    • Figure 1. Research model
    • Figure 2. Measurement model result
    • 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
    • Conceptualization
      Risye Dillianti, Harjanto Prabowo, Rano Kartono Rahim, Yohannes Kurniawan
    • Data curation
      Risye Dillianti
    • Formal Analysis
      Risye Dillianti
    • Funding acquisition
      Risye Dillianti
    • Investigation
      Risye Dillianti
    • Methodology
      Risye Dillianti
    • Project administration
      Risye Dillianti
    • Resources
      Risye Dillianti
    • Software
      Risye Dillianti
    • Validation
      Risye Dillianti, Harjanto Prabowo, Rano Kartono Rahim, Yohannes Kurniawan
    • Visualization
      Risye Dillianti
    • Writing – original draft
      Risye Dillianti
    • Supervision
      Harjanto Prabowo, Rano Kartono Rahim, Yohannes Kurniawan
    • Writing – review & editing
      Harjanto Prabowo, Rano Kartono Rahim, Yohannes Kurniawan