The role of strategic alignment and resource availability in boosting the digital capabilities of Jordanian insurance companies

The growing technological disruption in the modern era has redefined the existing business processes. As a result, being strategically aligned while allocating proper resources is pivotal for any business. This study focuses on managers’ digital capability in conjunction with strategic alignment and resource availability in Jordanian insurance companies. Data were gathered via a questionnaire and covered 304 administrative employees from 16 licensed insurance companies in Jordan, processed through a cross-sectional survey. The analysis using SmartPLS (4) was conducted to verify the relationships between strategic alignment, resource allocation, and digital capabilities. The analysis showed a significant positive correlation between strategic alignment and overall digital capabilities, with a path coefficient of 0.710 and an R2 of 0.953. Likewise, resource availability positively correlated with the increase in overall digital capabilities, with a path coefficient of 0.685 and an R2 of 0.888 for available resources. In cases where resource increases were observed, strategic alignments were also observed where the strategy increased digital capabilities through improved resource allocation parameters. This additional corroborative evidence was supplied with a path coefficient of 0.680 and an R2 of 0.910. It is reasonable to hypothesize that organizations with favorable resource management practices will be more successful in harnessing strategic alignment to fill the gaps in digital competencies. Therefore, the study proposes that insurance companies should design better resource allocation policies coupled with more effective staff training to take full advantage of digital transformations. These steps are necessary to gain and maintain a competitive advantage in the ever-changing and turbulent insurance industry. Acknowledgment The authors are grateful to Middle East University, Amman, Jordan, for the financial support to cover this article's publishing fee.