Structural Design and Explanation of a Business Model Based on Digital Innovations in the Insurance Industry
Keywords:
digital innovation, digital business model, insurance industry, mixed, methods approachAbstract
The present study aimed to design and structurally explain a business model based on digital innovations in the insurance industry and to examine the relationships among its principal dimensions within a paradigmatic framework. This applied study employed an exploratory mixed-methods design. In the qualitative phase, grounded theory methodology was utilized, and data were collected through semi-structured interviews with 12 academic experts and senior managers in the insurance industry. Participants were selected through purposive sampling until theoretical saturation was achieved. Qualitative data analysis was conducted using open, axial, and selective coding, resulting in 429 first-order open codes, 108 second-order open codes, 27 axial categories, and 6 selective categories. In the quantitative phase, the statistical population consisted of employees from 10 selected insurance companies in Tehran. Based on Cochran’s formula, 375 participants were selected using stratified random sampling. Data were collected using a researcher-made 72-item questionnaire. Content validity, convergent validity, and reliability indices, including CVR, CVI, Cronbach’s alpha, and composite reliability, confirmed the adequacy of the instrument. Quantitative data were analyzed using structural equation modeling in SMART PLS 3 software. The qualitative findings revealed that the digital innovation-oriented business model in the insurance industry consisted of six major dimensions: comprehensive DIBM policymaking system, development of a technological DIBM organism, digital dynamic environmental orientation, functional epistemology of digital innovation, DIBM strategic ecosystem, and business performance improvement. Quantitative findings demonstrated that the comprehensive DIBM policymaking system had significant positive effects on the development of the technological organism, digital dynamic environmental orientation, and the functional epistemology of digital innovation. Furthermore, digital dynamic environmental orientation significantly influenced the functional epistemology of digital innovation, whereas the technological organism development did not show a significant relationship with it. In addition, the functional epistemology of digital innovation exerted the strongest influence on the DIBM strategic ecosystem, which in turn had a direct positive effect on business performance improvement. The findings indicated that digital transformation in the insurance industry extends beyond technological automation and requires a fundamental redesign of business models, organizational decision-making systems, and value-creation mechanisms. Sustainable digital innovation in the insurance sector depends on establishing an integrated strategic ecosystem, strengthening digital-oriented organizational culture, enhancing knowledge capabilities, and redesigning operational processes based on advanced technologies. Therefore, adopting a digital innovation-based business model can significantly improve competitiveness, organizational agility, operational efficiency, and value creation within insurance companies.
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