Effect of Growth Strategies on the Financial Performance of Takaful Livestock Insurance Products in Kenya
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Date
2023-09
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Daystar University, School of Business and Economics
Abstract
Insurance companies play a crucial role when it comes to the distribution of funds to various sectors of an economy. This study examined the effect of growth strategies on the financial performance of Takaful livestock insurance products in Kenya. The study was guided by three objectives: examine growth strategies adopted by Takaful Insurance livestock products, assess the financial performance of Takaful Insurance products, and determine the extent to which growth strategies affect the financial performance of Takaful Insurance products. The study referred to the Ansoff growth matrix (market penetration, product development, market development, and diversification) and was underpinned by the resource-based view (RBV), agency, and prospect theories. It used a census descriptive research design with 51 respondents across senior, middle, and junior management levels. Questionnaires comprising open and closed-ended questions were employed to collect data, which was analyzed using a multiple regression model. Both descriptive and inferential statistics were adopted in the study. The growth strategies evaluated in the study comprised market development, concentric diversification, strategic alliances, and product development. Based on the findings, product development had the greatest contribution to financial performance with a value of 3.019 and a Beta coefficient of 2.238 supported by a p-value of less than 0.05. The study established that an increase in product development caused an increase in the financial performance of Takaful Insurance by 0.472. It concluded that Takaful Insurance has fully adopted market development and product development as the main growth strategies in its operations. The study recommended Takaful Insurance invest more efforts into tactics in line with product development and market development growth strategies due to their relatively significant effect on its financial performance.
Description
MASTER OF BUSINESS ADMINISTRATION
in Finance and Strategic Management
Keywords
Growth Strategies, Financial Performance, Takaful Livestock Insurance Products
Citation
Kwaje, D. M., (2023). Effect of Growth Strategies on the Financial Performance of Takaful Livestock Insurance Products in Kenya: Daystar University, School of Business and Economics