The Effect of Social Interaction on Innovation in Insurance Companies

Considering the importance of social interaction and innovation, in this paper we have examined the effect of social interaction on innovation in insurance companies. Statistical population of this study was private insurance companies in Tehran and 115 of this company's executives was selected. A standard questionnaire was used to collect data. Its validity was supported by experts and its reliability was investigated by Cronbach's alpha coefficient. Structural Equation Analysis was used to test the hypothesis. Considering the total results of the hypothesis test and standard regression can be argued that the administrative innovation in Iranian insurance companies has been forgotten, due to weakness in the knowledge acquisition phase, low level of social interaction between employees, lack of introducing service-providing methods and innovative service-providing processes as well as non-fundamental and necessary changes in organizational structures.