A Business Model Based on the Digital Innovation Approach in the Insurance Industry

Abstract

The purpose of this study is to design a business model based on the digital innovation approach in the insurance industry. This research is a descriptive–developmental study grounded in the interpretive paradigm. The research approach is qualitative and inductive, and the qualitative strategy is based on grounded theory, using the Strauss and Corbin systematic method for data analysis. Field data were collected through semi-structured interviews with experts in business management, financial management, information technology management, executive management, and commercial management, and purposive judgmental sampling was employed. For data analysis, the coding technique was applied across four levels: first-order open codes, second-order open codes, axial categories, and selective categories. Furthermore, to assess validity, the content validity approach was used based on two criteria: Lawshe’s Content Validity Ratio (CVR) and the Content Validity Index (CVI). The Lawshe statistic showed that, out of 108 second-order open codes, 102 codes achieved a CVR of 0.75 or higher, indicating that the generated codes possess strong validity. Other codes that obtained less than 0.75 were removed from the categorization process. CVI results demonstrated that, from the experts’ perspective, 102 second-order open codes reflected high agreement among experts for inclusion in the study’s paradigm model, and all codes were above the average threshold (= 3), confirming expert consensus. Additionally, two methods were used to assess qualitative reliability: inter-coder reliability and test–retest reliability. The test–retest reliability—performed by the researcher—was 92.65%, and the inter-coder reliability (researcher + coder) was 86.45%. Considering that both reliability values exceed the threshold of 0.70, qualitative reliability is confirmed in both methods. Findings obtained from the analysis of the collected data consisted of 429 first-order open codes, 108 second-order open codes, 27 axial categories, and 6 selective categories. Based on the systematic grounded-theory approach, these categories correspond to causal conditions (comprehensive DIBM policymaking system), contextual conditions (development of the technological organism of DIBM), intervening conditions (dynamic digital environmentalism), core phenomenon (functional epistemology of digital innovation), strategies (ecosystem of DIBM strategies), and consequences (improvement of business performance). Therefore, familiarity with the domain of digital innovation requires a “digital discourse” within the internal environment of the organization, such that the organization as a whole and its decision-making body become gradually acquainted with technological and digital topics and develop appropriate deep and contextual understanding aligned with organizational activities. The findings of this study can serve as a roadmap and an action-oriented schema for entering the field of digital innovations, leveraging these capacities within business environments, and adopting an operational model aligned with current and future digital requirements.