| dc.description.abstract | The objective of the study was to determine the factors influencing choice of unrelated
diversification strategies in the insurance industry in Kenya. The research design adopted
by the study was a survey of insurance companies operating in Kenya. The study used
primary data which were collected through self-administered structured questionnaires.
The study used primary data which was collected through self-administered
questionnaires. The structured questionnaires were used to collect data on the factors
influencing the choice of unrelated diversification strategies in the insurance industry in
Kenya. The data was analyzed and presented using mean, standard deviation and
percentages. Results were presented in tables and charts. The findings of the study was
that the reasons for companies pursuing unrelated diversification strategy was the
promise for attractive financial gain, availability of resources which makes
diversification economically feasible, in order to gain from superior skills of top
management people, build shareholder value, profit erosion in maturing markets, in order
for the company to reduce risks, in order to increase profitability by exploiting general
organization competencies, highly fluctuating industry, in order for the company to learn
and the business environment lacking the necessary institutions and factors to compete
successfully. The study established that industry profitability, co-insurance effect, firm
characteristics and general economic environment influence the insurance companies to
pursue unrelated diversification strategies. | en |
