The Effects of Corporate Entrepreneurship and Strategic Management on Performance of Insurance Companies in Nairobi, Kenya
Abstract
The insurance industry in Kenya has been growing in leaps and bounds in the
recent past. There are many factors that have contributed to this this growth this
research sought to establish how corporate entrepreneurship and strategic
management affect the way insurance companies in Nairobi, Kenya perform.
This study used descriptive survey design. A questionnaire was used to collect
primary data. The questionnaire was executed using the drop and pick method to
senior executives and managers of all the 49 registered insurance firms in
Nairobi. Data was analysed using descriptive analysis to summarise the data and
presented the findings using tables. Data was interpreted using frequencies,
percentages and mean score and presented in form of frequency tables. The
results indicated that insurance companies use rewards to motivate proactive and
innovative employees. Insurance companies also use management support and
organisational boundaries to set precise explanations of outcomes expected from
organizational work and development of mechanisms for evaluating, selecting,
and using innovations exists within the organization. The insurance companies
are not open to risk taking as a strategy to encourage entrepreneurship and as
such they do not offer employees work autonomy or time to come up with these
innovative ideas. It is evident that new products have been the reason behind
high organisational performance among insurance companies. The study
concludes that though corporate entrepreneurship is a new concept in the field of
research, insurance companies in Kenya are well aware of the concept and they
are incorporating that in their strategy. Also, through rewarding employees and
offering them the necessary support, they can continuously provide innovative
products to the market which will then lead to higher firm performance.
However, it is also important for the insurance companies to carry out research
before they bring a new product in the market. The study recommends that
companies should leverage internal resources, especially the employees, to help
them gain competitive advantage. The researcher also recommends that this
strategy be used in conjunction with others because there is no one way to
success in strategy.
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
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