Strategy Evaluation Practices Adopted by Insurance Firms in Nairobi, Kenya

Abstract

The objective of the research was to establish strategy evaluation practices adopted by insurance firms in Nairobi, Kenya. The population of this study consisted of all the forty three (43) insurance firms in Nairobi, Kenya which are registered by the Insurance Regulatory Authority (IRA, 2012).A list of the insurance firms in Nairobi, Kenya was obtained from the Insurance Regulatory Authority (IRA). Primary data was collected from these companies by use of a questionnaire. The study established that 50% of insurance firms in Nairobi, Kenya adopt a formal approach to strategy evaluation while 20.83% adopting informal strategy evaluation. 50% of the insurance companies evaluate their strategies formally, 20.83% informally and 29.17% both formally and informally. The insurance companies have adopted both formative and summative evaluation. Formative evaluations strengthen or improve the strategy being evaluated. They help form it by examining the delivery of the strategy, the quality of its implementation, and the assessment of the organizational context, personnel, procedures, inputs, and so on. Summative evaluations, in contrast, examine the effects or outcomes of strategy. The companies also evaluate strategy in light of both financial and operational performance of the organization. Key limitations included non-response of some respondents and shortage of time. The study recommends that researchers in strategic management can take the topic of strategy evaluation further by conducting a case study on one of the insurance companies in Kenya.