Strategic Agility and Organizational Performance of Insurance Firms in Kenya: A Case of Cic Insurance Group Limited
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Date
2024-10
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Daystar University, School of Business and Economics
Abstract
In the dynamic insurance landscape, firms must embrace strategic agility to navigate competition, evolving customer expectations, and technological advancements, with 38% of companies struggling to maintain performance, risking market share and profitability. The insurance industry faces increasing challenges from competition, shifting customer expectations and technological advancements, leading many firms to struggle with declining performance and customer dissatisfaction. The purpose of this study was to establish the effect of Strategic Agility on the performance of CIC Insurance Group. The objectives of the study were to determine the effect of decision-making speed, to establish the effect of flexibility in resource allocation, to examine the effect of innovation and to establish the effect of customer centricity on the performance of CIC Insurance Group in Kenya. The research was anchored on Dynamic Capabilities Theory, Resource Orchestration Theory, and Upper Echelons Theory. The study used descriptive research design. Structured questionnaires and interviews were used, involving 189 employees, which included 10 senior management officials. Data analysis was done using descriptive and inferential statistics to explore the relationship between strategic agility and performance. The key findings of the study were strategic agility which has significant effect on the performance of CIC Insurance Group. The decision-making speed process was rated positively, with an overall mean of 4.2 and a Pearson correlation coefficient of 0.631 with performance, emphasizing the importance of timely and effective decision-making. Innovation is also highly rated (mean = 4.1), with a correlation of 0.756, indicating that fostering a culture of continuous improvement is crucial for success. flexibility in Resource allocation received an overall mean score of 4.03, with a correlation of 0.795, underscoring the role of adaptable resource management in responding to market changes. Customer-centricity had the highest correlation with organizational performance (0.815), with an overall mean of 4.2, highlighting the value of understanding and responding to customer needs. The multiple regression analysis revealed that 71.3% of the variance in organizational performance could be explained by these components, confirming the strong impact of strategic agility on performance. The research concludes that decision-making speed has a significant impact on CIC's performance, with faster decision-making linked to better outcomes. However, maintaining a balance with accuracy is essential to ensure quality. Flexibility in resource allocation is identified as a key performance driver, enhancing the organization's ability to adapt to changing conditions. Innovation also plays a vital role, highlighting the need for an environment that supports continuous improvement. Customer centricity directly contributes to enhanced performance, with a strong emphasis on understanding customer needs and leveraging feedback. To sustain success, CIC should focus on refining decision-making processes, optimizing resource management, and fostering a culture of learning and innovation. Enhancing customer-centric strategies through advanced CRM systems and tailored engagement is also crucial. Future research should explore decision-making at various organizational levels, the long-term impact of flexibility in resource allocation, the role of technological advancements, cultural influences on customer centricity, leadership styles, and the relationship between employee engagement and performance. This aid in developing successful strategies in the dynamic business environments.
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Master of Business Administration in Strategic Management
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Citation
Ngugi, R. (2024). Strategic Agility and Organizational Performance of Insurance Firms in Kenya: A Case of Cic Insurance Group Limited. Daystar University, School of Business and Economics