Strategic drivers for market penetration in Zambia’s insurance industry

This study investigated the key strategic drivers for market penetration, explicitly focusing on Zambia’s insurance sector. Insurance penetration in Zambia is still relatively low compared to the African average and those in developed markets. Several strategic factors are hypothesised to influence this lower penetration. However, some studies on strategic management suggest a positive correlation between effective strategy formulation and implementation and market penetration. There is no documented evidence suggesting this theory has been critically investigated in Zambia’s insurance sector. Thus, this study sought to examine this theory regarding the Zambian insurance sector and understand the strategic factors that impact insurance uptake. Specific strategic management factors explored were leadership competency score, organisational structure, and culture, including the effect of innovation and technology and government policies on other variables and market penetration. The research followed a positivist paradigm employing a quantitative mode of inquiry with a cross-sectional survey design, where a sample of respondents from 30 insurance firms was used for primary data collection. Structural Equation Modelling (SEM) using Smart Partial Least Square (Smart PLS4) and Statistical Package for Social Sciences (SPSS) software facilitated data analysis. The study findings suggest that organisational culture exerts a positive and statistically significant impact on market penetration. However, leadership competency and organisational structure within insurance firms exhibit a counterintuitive impact, as they were found to have a statistically insignificant effect on market penetration. Further, the research uncovered the nuanced interplay of experience as an additional determinant of market penetration in the Zambian insurance landscape. The findings underscore the significance of strategic management in influencing market penetration and contribute to the literature by adding the Zambian insurance industry perspective. These findings contribute to an enhanced understanding of the Zambian insurance sector and hold relevance for a broader spectrum of industries. The insights from this study put forth a practical model to guide effective strategy formulation and implementation, fostering sustainable market penetration. The study provides a valuable resource for insurance industry practitioners, policymakers, and academics seeking to navigate Zambia's intricate landscape of market penetration and strategic development. The findings encourage a nuanced perspective on strategy and market dynamics, offering a foundation for future research and industry enhancement