Influence of Strategy Implementation on Performance of Investment Companies in Kenya

Abstract

In recent times, insurance firms have adopted an investment product which follows a model different from the usual investment models existing in Kenyan market. This study focused on how these companies’ strategy implementation determines their performance. The study involved insurance companies which offer investment solutions. Implementation of strategy incorporates assortment of the organization's processes, systems and culture in order to achieve the desired goals. The specific objectives were to establish if communication, resource allocation, technological infrastructure and strategic leadership influence performance of the investment companies in Kenya. The theories and model that guided the study were; resource based view, the upper echelons and balanced scorecard. A descriptive research design was used. The study population was nine insurance companies with a target population of fifty four managers from the companies. A structured questionnaire was used as a tool for collecting primary data. A pilot study was carried out before the actual study. Data was analyzed using descriptive analysis, correlation analysis and multiple linear regression analysis. Data was presented through figures and tables. The findings of the study noted that the four independent variables; communication, resource allocation, technological infrastructure and strategic leadership had a positive and significant influence on the performance of investment companies in Kenya. A conclusion was made that the four independent variables had an existing positive relationship with performance. The study recommends that the management of the investment companies should consider firmly implementing the strategies which are fundamental in driving the overall performance of these institutions and other investment companies.