dc.description.abstract | The purpose of this study was to examine the relationship between strategic responses
and performance of insurance firms in Kenya. The study independent variables were
expansion strategy, product and technology innovation strategy, cost and differentiation
strategy, strategic alliance and mergers and acquisition strategy, while the dependent
variable was firm performance, measured by return on assets and net profits over a period
of five years. The study adopted a descriptive cross-sectional survey design. A census of
all the 51 insurance companies was undertaken. Out of the 51 questionnaires that were
distributed to the respondents, 31 were returned completed (61%) response rate. Data was
obtained from both primary and secondary data. Primary data was collected using a semistructured
questionnaire guided by closed and open-ended questions aimed at collecting
general information and specific information about the strategic responses and financial
performance of insurance firms respectively. In the study, descriptive statistics (mean and
standard deviation) and inferential statistics (Pearson correlation and multiple regression)
were used to describe and analyze the variables numerically. A Multivariate regression
model was used to analyze the relationship between strategic responses and the financial
performance of insurance firms in Kenya. Findings show that product and technology
innovation strategy and expansion strategy were statistically significant. Limitations of
the study included the following: despite the researcher’s assurance the information
provided would only be used for academic purposes, some of the selected respondents
still did not return the questionnaires, citing doubts on confidentiality of the information
sought, and some of the targeted respondents declined to participate in the study, citing
their organizational policies which stipulate that only the Chief Executive Officer was
authorized to divulge information regarding their respective organizations. The following
areas are recommended for further study: A similar study could be carried out in other
organizations to find out whether the same results will be obtained. The study focused on
insurance firms thus the same study should be carried out in other industries such as the
banking sector. In addition, similar studies should be undertaken in the insurance sector
in other countries for comparison purposes. | en_US |