INFORMATION SYSTEM CONSIDERATIONS AND ORGANIZATIONAL PERFORMANCE OF SELECTED LIFE INSURANCE FIRMS IN NAIROBI CITY COUNTY, KENYA
Silas Ojee Otieno - Master of Business Administration Student, School of Business, Economics & Tourism, Kenyatta University Kenya
Dr. David Nzuki (PhD) - School of Business, Economics & Tourism, Kenyatta University Kenya
ABSTRACT
Using information systems is crucial in the growth of any organization today. Technology drives the agenda of every contemporary industry. In this precept, the IS is the center of this study, which aims to explore how technology has bolstered economic growth and profit-making in this industry. Information systems dealt with collecting, organizing, storing, and retrieving data to support operations, decision-making, and the management of information within organizations. The study assessed the impact of customer service, managerial support, and knowledge exchange on operational success. IS enabled organizations to streamline operations and improve efficiency. The study used an explanatory research design and was influenced by resource dependency theory and the balanced scorecard model. 11,690 people who were selected from three groups under the IRA made up the target population. To guarantee sufficient representation of every subgroup and improve estimate precision, a stratified sampling technique was used. A sample of 387 respondents comprising life insurance agents, bancassurance employees, and brokers was targeted, with 350 valid responses obtained, yielding a 90.4% response rate. Pearson correlation results revealed that customer care, management support, IT user skills, and information sharing all had positive and statistically significant relationships with firm performance (p < 0.01). Among these, information sharing (r = 0.74) exhibited the strongest association, highlighting the importance of timely and accurate communication in enhancing decision-making and customer responsiveness. Regression analysis confirmed that all four variables significantly predicted firm performance, collectively explaining 67% of its variation (R²= 0.67, F = 52.4, p < 0.001). The most significant predictor was management support, highlighting the importance of resource allocation and leadership commitment in efficient IS use. Strengthening customer care systems, enhancing managerial support, improving IT user skills, and fostering information sharing were recommended to boost operational efficiency and market competitiveness.