Influence of strategic planning processes on organizational performance: a case of insurance companies in Kenya

Abstract

Strategic planning is a key factor in determining organizational performance in Kenya's competitive insurance market, particularly in private listed companies. The importance of strategic planning procedures and their impact on enhancing business performance in this sector are examined in this study. The research sets three primary targets to understand core strategic planning elements, examine leadership participation in planning tasks, and study its total influence on organizational outcomes. The research demonstrates awareness of special conditions that exist within this sector. The research was based on a literature review incorporating the Strategic Management Theory and the Contingency Theory. The conceptual framework majored on the independent and dependent variables. The research employed quantitative surveys to gather data from executive staff in insurance companies. The studies revealed that committed leadership with strategic planning skills leads to better organizational results. The research suggests that market review, managing resources, and regular assessment are the main factors for great strategic planning. It noted that Kenyan licensed insurance companies need strategic plans, yet the plans do not always work because of regulations and unstable market conditions. According to the study, environmental scanning was considered the most important element, while strategy formulation and implementation depend on each other greatly. It was discovered from a regression analysis that these elements play a major role in how well an organization performs. It was found that leadership mattered, although its impact on ordinary tasks was not significant, so further improvements in leadership are needed to make the most out of strategic planning. As a result, the study provided useful information for practitioners and legislators who want to improve strategic frameworks and boost the competitiveness of the sector. With ramifications that go beyond the industry's immediate setting, this research adds to the body of knowledge on strategic management by advancing our understanding of how strategic planning affects organizational performance. Future studies should examine how digital transformation affects strategic planning in Kenyan insurance firms.