STRATEGIC ALIGNMENT ON PERFORMANCE OF INSURANCE COMPANIES IN NAIROBI CITY COUNTY, KENYA

Edith Keru Nyaga, Dr. Samson Paul Nyang’au

Abstract


The general objective of the study is to examine the influence of strategic alignment on Performance of insurance companies in Nairobi city County, Kenya. Specifically, the study sought to examine the influence of goal alignment on performance of insurance companies in Nairobi city County, Kenya, to assess the influence of organizational structure alignment on performance of insurance companies in Nairobi city County, Kenya. This study was guided by Goal Setting Theory and Contingency Theory. The study used a cross-sectional descriptive research design. The study targeted management employees from these firms. From the 21 firms, the study targeted 2 top management employees, 3 middle level management employees and 5 lower level management employees from each firm. This implies that the total population form the study was 210 respondents. The study used Fisher, Laing and Stoeckel formula in determining the sample size of 173 respondents. The study used Stratified random sampling to select the sample to be used. Questionnaires were administered for primary data collection. SPSS version 23 was used to analyze quantitative data using descriptive and inferential statistics. The findings of the study were presented descriptively using frequencies, percentages and means, while inferentially the study used correlation and regression analyses to test the relationship between turnaround strategies and performance of registered insurance firms in Kenya. The study results were presented through use of tables and figures. From the pilot test results; all the variables were found to have Cronbach alpha value greater than 0.7. This suggested that all the variables were reliable and hence there is no need to change the measures and indicators in the questions. This implies that the research instrument met all the validity and reliability requirements. The study concludes that goal alignment has a positive and significant influence on performance of insurance companies in Nairobi city County, Kenya. In addition, the study concludes that organizational structure alignment has a positive and significant influence on performance of insurance companies in Nairobi city County, Kenya. Based on the findings, the study recommends that the management of insurance companies in Kenya should prioritize the alignment of individual and organizational goals. By ensuring that employees’ personal objectives and daily tasks are in sync with the company's broader strategic vision, organizations can foster greater focus and commitment. In addition, the study recommends that management of insurance companies in Kenya should focus on aligning their organizational structure with their strategic goals to improve overall performance. A well-aligned structure ensures clear roles, responsibilities, and efficient decision-making processes, which reduce confusion and increase operational efficiency.

Key Words: Strategic Alignment, Goal Alignment, Organizational Structure Alignment, Performance, Insurance Companies

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