RESEARCH ARTICLE SUMMARY-PRACTITIONER IMPLICATIONS

Johne, A., and Davies, R. (2000). Innovation in medium sized insurance companies: How marketing adds value. International Journal of Bank Marketing, 18(1), pp.6-14 . Implic

The authors examined the role that marketing played in initiating change in five medium sized mature insurance companies in the UK. The basic hypothesis was that more successful change would be characterized by simultaneous change approach as opposed to the traditional sequential step by step process. Areas investigated were broad and included leadership styles, culture and organizational structure.

In-depth information was obtained from the CEO's of each firm using interviews and other data sources. Although facing similar challenges, the differences in approaches between successful and less successful firms was striking. The successful firms tended to follow a simultaneous approach by initiating change in many areas at one time whereas the less successful CEO's followed what maybe termed a text book sequential process. The major finding was the number and types of innovations pursued by the successful companies with a focus on both market and product innovations.

IMPLICATIONS

Although one must take care in interpreting this study due to its focus on one industry, only 5 firms and the interpretivist nature of the investigation, it does hold some interesting insights. What may seem chaotic and illogical was in fact guided by one major factor: market opportunities. That is, all CEO's appreciated the vital role of marketing and initiated market driven rather than supply driven change. It also showed the importance of a totally integrated company effort and how marketing plays a role.