Does Firm Innovativeness Mediate the Relationship between Human Capital and Financial Performance of Insurance Firms in Kenya?

Abstract

This study investigates the effect of firm innovativeness in mediating the human capital-financial performance link. The research is founded on human capital theory. The data was drawn from employees in all the 49 insurance firms in Kenya. The usable sample for the study comprised 372 employees. Data was gathered via a survey questionnaire and examined using structural equation modelling. The outcomes show that there is an affirmative and substantial association amid human capital and financial performance. Additionally, it has been demonstrated that a company's innovativeness helps to moderate the affiliation between financial performance and human capital.