The strategic role of risk culture in enhancing innovation and non-financial performance: evidence from the insurance sector

TY - JOUR

T1 - The strategic role of risk culture in enhancing innovation and non-financial performance

T2 - evidence from the insurance sector

AU - Oziri, Victoria

AU - Knox, Stephen

N1 - Publisher Copyright: © 2025 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group.

PY - 2025

Y1 - 2025

N2 - Organizational culture plays a critical role in shaping innovation and performance, yet the specific contribution of risk culture, a vital subset of organizational culture, remains underexplored, particularly in emerging economies. This study investigates how risk culture influences innovation and non-financial performance in the Nigerian insurance sector. Drawing on Resource-Based Theory and Dynamic Capability Theory, we analyze survey data from 251 employees across multiple organizational levels using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings show that risk culture significantly enhances customer-based performance, internal business processes, and learning and growth. Moreover, innovation mediates the relationship between risk culture and both customer-based performance and internal processes, though not learning and growth. These results highlight risk culture as both a strategic resource and an enabling capability for innovation. This study contributes to the literature by extending resource-based theorizing to non-financial performance outcomes and offering practical guidance for fostering innovation and resilience in service-oriented industries.

AB - Organizational culture plays a critical role in shaping innovation and performance, yet the specific contribution of risk culture, a vital subset of organizational culture, remains underexplored, particularly in emerging economies. This study investigates how risk culture influences innovation and non-financial performance in the Nigerian insurance sector. Drawing on Resource-Based Theory and Dynamic Capability Theory, we analyze survey data from 251 employees across multiple organizational levels using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings show that risk culture significantly enhances customer-based performance, internal business processes, and learning and growth. Moreover, innovation mediates the relationship between risk culture and both customer-based performance and internal processes, though not learning and growth. These results highlight risk culture as both a strategic resource and an enabling capability for innovation. This study contributes to the literature by extending resource-based theorizing to non-financial performance outcomes and offering practical guidance for fostering innovation and resilience in service-oriented industries.

KW - Risk culture

KW - dynamic capability theory

KW - firm innovation

KW - non-financial performance

KW - resource-based theory

UR - https://www.scopus.com/pages/publications/105014924518

U2 - 10.1080/13669877.2025.2553083

DO - 10.1080/13669877.2025.2553083

M3 - Review article

SN - 1366-9877

VL - 28

SP - 705

EP - 730

JO - Journal of Risk Research

JF - Journal of Risk Research

IS - 7

ER -