The Moderating Effect of Regulatory Framework on 4Ps of Innovation Strategies and Competitive Advantage of Insurance Companies in Nigeria

Abstract

This study investigated the moderating effect of regulatory framework on 4Ps of innovation strategies and the competitive advantage of insurance companies in Nigeria. The cross-sectional descriptive research design and purposive sampling technique were employed. Data was collected from 54 insurance companies through structured questionnaires. The hierarchical multiple regression analysis was employed to test the research hypotheses. The results of findings indicated that product, process, and position innovation have a significant effect on competitive advantage of insurance companies. However, paradigm innovation showed an insignificant effect on competitive advantage. Moreover, a stricter regulatory framework reduces the positive impact of innovation strategies on competitive advantage. While innovation is crucial for Nigerian insurance companies to stay ahead, the regulatory framework can either help or hinder this effort. It was recommended that insurance companies should focus on improving their product, process and position innovation to meet the growing needs of individuals and businesses. Also, the government through the National Insurance Commission (NAICOM) should design regulatory policies that encourage growth, rather than stifle innovation in the insurance sector. Future research could explore how regulatory framework moderates between the 4Ps of innovation strategies on competitive advantage of commercial banks, manufacturing and the telecommunication sector to determine how different sectors of the Nigerian economy react to the measures under study.