Abstract:
Economic and social resilience as well depends upon a robust and stable insurance industry. Its penetration in the globally is a cause for concern, with an unstable rate of below 10%.The Kenyaninsuranceindustryisso fragmented with 58 firms and just 5 of them wththeir market share suffiicient to competeglobally. Studies done globally and locally in other sectors of the economy have shown a positive relationship between entrepreneurial marketing (EM) and the performance. This study evaluated the effect of EM variables on the gross premium and market share as a performance indicators for insurance firms in Kenya. Specifically, the study determined the effect of: strategic orientation (differentiation strategy, cost leadership, customer orientation) innovation orientation (product innovation, processes innovation, market innovation), and innovation orientation (product, process and market) on the performance of the firms. Further, the effect of market orientation (frequency of market surveys and budget for market research) and resource leveraging (human resources and partnership and alliances) on the performance was analysed. Resultsindicated that strategic orientation had a positive but insignificant effect on the performance, while innovation, market orientation and resource leveraging had a positive and significant effect on the performance of insurance firms in Kenya. The study also established a negative but significant moderating effect of the regulatory framework (capitalization and licensing) on the relationship between EM and the performance of insurance firms in Kenya. Conclusion was reached that insurance firms should always consider the four dimensions of entrepreneurial marketing if they are to improve their performance.
