Abstract: The study assessed the effect of strategic management practices on performance of Insurance firms in Kenya. The specific research objectives were to examine the effects of environmental analysis on organizational performance of insurance firms; to find out the effects of strategy evaluation on organizational performance of insurance firms; to establish the extent to which strategy formulation enhances organizational performance of insurance firms, and to find out the relationship between implementation of strategies and organizational performance of insurance firms. The study adopted a descriptive research design. The population of the study was 51 insurance firms in Kenya which are licensed with Insurance Regulatory Authority. A complete census was carried out due to the small size of the population; hence the sample size was equal to the population size of 51 licensed Insurance firms located in Kenya. An equal number of respondents, 5, was drawn from each of the 51 insurance firms in Kenya, generating a total sample size of two hundred and fifty-five 255. Data was collected using structured questionnaires and analyzed using descriptive statistics and regression analysis. IBM SPSS 23 was used to compute for descriptive analysis which was performed for the dependent variable; organizational performance, independent variables environmental analysis, strategic evaluation, strategic formulation, strategy implementation. The study found that the companies did not routinely carry out SWOT analysis and were not competent in conducting SWOT analysis. The companies have only moderately prioritized PESTEL analysis and recognized its importance to effective operations management. The companies had vision statements that vision was relevant to the company and its activities. Regression results indicated a statistically significant relationship between environmental analysis, strategic formulation, strategy implementation and strategic evaluation on organizational performance. The study recommends greater prioritization of environmental scanning and assessment in establishing the strengths, weaknesses, opportunities, and threats in the internal and external environment. The study also recommends improved strategic evaluation by linking practices to outcomes, and assessing strengths and weaknesses to determine the kinds of information needed to correct deficiencies and enhance continuous improvement of performance. Policies should be put in place to facilitate the sharing of suggestions for the development of vision, mission, and strategic objectives across all hierarchies in the organization. There is need for managers to give direction and supervision through different phases of strategy implementation.
Keywords: Strategic Management Practices, Environmental Analysis, Strategic Evaluation, Strategy formulation, Strategy implementation, Organizational performance.
Title: EFFECT OF STRATEGIC MANAGEMENT PRACTICES ON PERFORMANCE OF INSURANCE FIRMS IN KENYA
Author: EMMA AKINYI ONYANGO, Dr. MARY MWANZIA
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
Research Publish Journals
