digital networks and insurance firm performance: the mediating role of metaverse technology adoption

This study develops an integrative model to examine how digital media networks-comprising smart networks, social networks, and digital media-collectively influence insurance firm performance, with the metaverse conceptualized as a strategic mediating platform. while prior studies have explored digital transformation in insurance, limited empirical research has examined how immersive technologies translate digital network resources into performance outcomes, particularly in emerging markets.using a descriptive survey design, data were collected from 486 insurance professionals across two major iranian insurance firms. partial least squares structural equation modeling (pls‑sem) was employed to test the hypothesized relationships and assess the model's reliability, validity, and predictive power.the results indicate that smart networks (β = 0.437, p < 0.001), social networks (β = 0.323, p < 0.001), and digital media (β = 0.292, p < 0.001) have significant positive effects on insurance performance. moreover, the metaverse exhibits a strong partial mediating effect (β = 0.472, p < 0.001; vaf = 59%), amplifying the performance impact of digital networking infrastructures. the structural model demonstrates strong explanatory and predictive capability (r² = 0.75, q² = 0.41, gof = 0.449, srmr = 0.078, nfi = 0.86).the findings highlight how insurers can leverage ai‑ and iot‑based smart networks, social media engagement, and digital platforms to enhance operational efficiency and customer experience. the metaverse emerges as an enabling environment for immersive interaction, virtual training, and innovative insurance services in emerging markets.this study is among the first to empirically validate the metaverse as a mediating mechanism between digital networks and firm performance in the insurance sector. by integrating the resource‑based view (rbv) with technology adoption theories (tam and utaut), the research advances digital transformation theory and offers actionable insights for insurance firms operating in emerging economies.