The Influence of Protecting Leadership Voices from Below Behaviour on the Digital Transformation of Insurance Firms in Kenya

Abstract

This research investigated the impact of protecting leadership voices from below behaviour on the digital transformation of insurance firms in Kenya. This study, grounded in adaptive leadership framework, adopted a positivist approach and a descriptive research design to study a target population of 392 supervisors from the 56 registered insurance firms listed by the Insurance Regulatory Authority. The final sample of 127 respondents, represented a response rate of 63%, was drawn using a stratified random sampling technique. Protecting leadership voices from below behaviour was operationalized through the dimensions of employee voice, employee engagement, and work environment, while digital transformation was assessed using metrics such as digital innovation, customer experience, and returns on assets. Inferential statistical analyses, including correlation analysis, chi-square test, one-way ANOVA, ordinal logistic regression were adopted to test the research hypotheses. The findings from the ordinal logistic regression analysis, indicated by the Nagelkerke Pseudo R-square coefficient, demonstrate that protecting leadership voices from below behaviour explains 37% of the variance in digital transformation (Nagelkerke Pseudo R² = .37). Moreover, the parameter estimates obtained from the ordinal regression analysis revealed a statistically significant and positive relationship between protecting leadership voices from below behaviour and digital transformation, β6 = -18.647, p≤.05. In conclusion, this study establishes a substantial connection between protecting leadership voices from below behaviour, and the digital transformation of insurance firms in Kenya. Specifically, when leaders create a conducive work environment that encourages employees voice and engagement, this adaptive leadership behaviour significantly and positively influences digital transformation. Consequently, leaders are recommended to proactively embrace protecting leadership voices from below behaviour by implementing policies and practices that promote employee voice, enhance employee engagement, and establish supportive work environments. These efforts will facilitate and enhance the prospects of achieving successful digital transformation within the Kenyan insurance industry. Further studies on the adaptive leadership framework in the broader financial services industry are recommended.