Strategic Management Processes and Performance of Insurance Firms in Nairobi County, Kenya
Abstract
Purpose: The research aimed to evaluate and determine how strategic management processes affect performance in Kenya's insurance sector. Four objectives guided the study: to ascertain how environmental analysis affects performance, how strategic implementation affects performance, how strategic formulation influences performance, and how strategic evaluation and control impact overall performance in Kenya's insurance sector. Methodology: A descriptive research design was used for this study. Some of the senior and middle-level management employees of the insurance businesses in Nairobi County that have registered with the Association of Kenya Insurers (AKI) by December 2024 are the study's target source of research data. The respondents were chosen for the study using a random sampling method. Self-administered questionnaires distributed on a drop-and-pick basis were used to collect the primary data from the target group. The quantitative variables and data shown in tables and graphs were obtained using descriptive statistics, such as frequencies, percentages, mode, and standard deviations. The study contributed to evaluating and establishing how strategic management processes impact performance in insurance firms in Nairobi County, Kenya. Findings: The regression results indicated that environmental analysis had a positive but statistically insignificant relationship with organizational performance (β = 0.015, p = 0.058), strategy formulation had a positive and significant influence on performance (β = 0.425, p = 0.021), strategic implementation had a strong and statistically significant influence on organizational performance (β = 1.025, p < 0.001) and strategic evaluation and control had the strongest positive influence on organizational performance (β = 1.199, p < 0.001). Unique Contribution to Theory Practice and Policy: The study recommended that insurance firms should strengthen their strategic management processes by ensuring that organizational goals and objectives are clearly defined and aligned with the organization's vision and mission.