The Influence of Strategic Agility on Competitive Advantage of Insurance Firms in Kenya

Abstract

Strategic agility has emerged as critical framework in strategic management more so in the 21st century. It has advanced since its seminal paper publication by Doz and Kosonen in 2008 and in the emergency of environmental volatility that organizations have to embrace it. Firms that have embarked on agile practices perform better than those not. It is in the context of the realization of the importance of strategic agility that this study sought to investigate the role of strategic agility in the performance of insurance firms in Kenya. The research was based on two theories; dynamic capability theory and contingency theory, in postulating the study’s conceptualization. A descriptive cross-sectional design was employed for the study. The population of the study was 58 licensed insurance firms operating in Kenya. All the 58 insurance firms formed the population of the study, hence a census study. Data collected was analysed using descriptive statistical approaches as well as inferential statistics. The findings revealed that strategic agility practices played a significant role in the performance of insurance firms in Kenya. The study therefore established there is a positive relationship between strategic agility and performance. Thus, affirming the study’s model. The study recommends that management of Insurance firms in Kenya to implement and practice strategic agility to improve their performance. The research suggests that firms identify which components of strategic agility practices relevant to their firms and spend extensively in those areas to achieve meaningful performance.