The Impact of Implementing Business Portfolio Analysis on Competitive Advantage of Firms: Analytical Study of Top Management Opinions of Jordanian Insurance Companies

Abstract

This study aims to analyze the impact of implementing business portfolio analysis on competitive advantage of firms. It is an analytical study of top management opinions of Jordanian insurance companies. To achieve the purpose of this study, a questionnaire was developed and distributed to the targeted research sample. The total number of distributed questionnaire forms amounted to (105), representing (50%) of the study population. The total amount of useable questionnaire forms was (102), representing a response rate of (97.1%). The study found the following results: The insurance companies are moderately interested in analyzing business portfolios and the adoption of analyzing business portfolio is moderate, while the adoption of insurance companies of competitive advantage strategies is high. Furthermore, implementing business portfolio analysis has a statistically significant impact on all competitive advantage strategies. In addition, business portfolio analysis explained (73.8%) of the variance in competitive advantage strategies. The effect was high for concentration strategy, followed by differentiation strategy and the least effect was for cost leadership strategy. The study recommends that great attention should be given to continuous improvement of business portfolio analysis practices through establishing special departments called business portfolio divisions. In addition, this study recommends applying strategies that achieve competitive advantage (cost, excellence and concentration) through benefiting from benchmarking operations.