The influence of organizational strategy on performance of insurance companies in Nairobi County

Abstract

Organizational strategy has been viewed as the stage of strategic management involving the use of managerial and organizational tools to direct resources towards achieving desired outcomes. Insurance performance is a worldwide problem with developed countries like United Kingdom at about 11 percent and the USA at 8.6% (Swiss 2013). The performance of the industry in Africa has also declined. The insurance industry in Kenya faces low insurance performance in terms of product diversification and market share among others. Insurance companies have not come up with products to fully tap the available market. In Kenya 96% (4 million) of adults do not have any form of insurance. The study sort to establish the influence of organizational strategy on performance of insurance companies in Nairobi County. The sample used was from four insurance companies in Nairobi County and comprised a total of 30 respondents. The companies were conveniently accessible within minimal and manageable costs due to budgetary constraints. It adopted a descriptive research. Questionnaires were used to collect data. Quantitative as well as qualitative data analysis was used. Graphs, tables as well as bar graphs were the form of data presentation used. Statistics was inferential including correlation and regression analysis. The study found out that there is a positive relationship between performance of insurance companies in Nairobi County and organization culture, organization resources, organization capabilities and information.