Organizational performance in the lens of entrepreneurial ecosystem: Analysing core components
DOI:
https://doi.org/10.65453/ajbmr.v14i3.1323Keywords:
Human capital; innovativeness; institutional finance; organization culture; organization marketsAbstract
Insurance companies in Nigeria have grown significantly, contributing to national development and economic progress, yet their organizational performance remains a critical concern for management, regulators and stakeholders. However, insurance forms are faced with stagnant sales growth, limited market share, insufficient innovation in products and services and difficulties maintaining a competitive edge in a dynamic market. While entrepreneurial ecosystems are recognized as vital for organizational success, a significant gap exists in understanding their impact on insurance companies, as existing research has largely focused on other sectors. This study addressed this gap by examining how entrepreneurial ecosystems of operational markets, institutional finance, organizational policy, human capital, institutional supports and organizational culture influence the performance of insurance companies in Lagos State, Nigeria. Hence, this study investigated the effect of the entrepreneurial ecosystem on the organizational performance of insurance companies in Lagos State, Nigeria. Data was collected from 261 top management personnel in selected insurance companies in Lagos State and survey was adopted. Using a structured adapted questionnaire administered through total enumeration, a response rate of 100% was achieved. The result of the data validity was confirmed at AVE > 0.5. Cronbach’s alpha values ranged from 0.70 to 0.91. confirmed the reliability of the research instrument. The data collected were analyzed using multiple regression and hierarchical regression techniques, at a significance level of p < 0.05. The findings of the study indicated that the entrepreneurial ecosystems had a statistically significant effect on organizational performance (Adj. R² = 0.559, F (6, 256) = 18.882, p < 0.05). The study therefore concluded that entrepreneurial ecosystem enhanced organizational performance of insurance companies in Nigeria. The study thus recommended that policymakers and industry leaders should strengthen the dimensions of sales growth, market share, innovativeness and competitive advantage in order to further enhance the organizational performance of insurance companies.
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