DETERMINANTS OF TURNAROUND STRATEGY IMPLEMENTATION ON THE COMPETITIVENESS OF INSURANCE INDUSTRY IN KENYA
Abstract
The main objective of this study was to examine the determinants of turnaround strategy implementation on the competitiveness of insurance industry in Kenya. The study adopted a descriptive research design and the target population comprised of 159 management staff (General Managers, Business Managers and Departmental Managers) from all the 53 insurance companies in Kenya. Descriptive statistics data analysis method was applied aided by Statistical Package for Social Sciences (SPSS) to analyze the gathered data. The study findings showed that descriptive statistics results on all study variables had a mean score of above 4.00 and standard deviation of the regression model coefficient of determination (R2) was 0.734 and this implied that 73.4% of the variation in competitiveness of the insurance can be attributed to; organizational capacity, innovation capacity, new technology adoption and leadership style. The study concluded that organization capacity was the key determinant of turnaround strategy implementation that affects competitiveness of the insurance industry most, followed by new technology adoption, then leadership style and lastly innovation capacity. The study recommended that, the management of insurance firms should source the required human resources in terms of competent, experience and enough staff; enough financial resources should be allocated in turnaround strategy implementation activities; management capacity should be improved by recruitment of experienced management staff with much experience in the insurance sector and effective marketing distribution channel of insurance products should be adopted to ensure easier accessibility of insurance products by customers in all market segments. The management of insurance firms should embrace innovative strategies that lead to new product development, venturing into new market, new product features, new processes and improved quality of organization products. The management should encourage all staff to come up with new ideas to create value for an organization. The management of insurance firm should embrace latest ICT based systems that facilitate effective delivery of insurance services. The top managers should apply transformational leadership skills and there should be a high level of top management support during new turnaround strategy implementation.
Key Words: Organization Capacity, Innovation Capacity, Technology Adoption, Leadership Style, Insurance Industry
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DOI: http://dx.doi.org/10.61426/sjbcm.v5i4.893
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