ORGANIZATIONAL CULTURE AND STRATEGIC PLAN IMPLEMENTATION IN THE INSURANCE INDUSTRY IN KENYA

Abstract

This study investigated the influence of organizational culture on implementation of strategic plans in the Insurance Industry in Kenya. Guided by the Competing Values Framework (CVF), the research was anchored on four cultural dimensions under the model; Market, Adhocracy, Clan, and Hierarchy. The study aimed at assessing the role of these cultural elements in influencing strategy implementation. The study adopted a descriptive research design targeting a sample size of 180 respondents drawn from 30 insurance firms in Kenya. Questionnaires were used to collect data which was analyzed through descriptive statistics, factor analysis, repeated measures ANOVA, reliability and validity testing, and multiple regression modelling. The outcomes of the analysis revealed that Market culture (M = 4.06) was the most popular, stressing performance-based practices, followed very closely by Clan culture (M = 3.93) and Adhocracy culture (M = 3.73), with Hierarchy culture (M = 3.31) being the least prevalent. Regression analysis revealed that Adhocracy culture was the only statistically significant determinant of strategy execution (𝛽 = 0.075, 𝑝 = 0.028), highlighting the critical role of innovation, agility, and adaptability in realizing strategic objectives. Despite not being statistically significant, Market and Clan cultures considerably contributed to focus, commitment, and teamwork, while Hierarchy culture was linked to slower decision-making and negligible influence on strategic plan implementation. The study concluded that a balanced cultural framework; integrating innovation, employee engagement, performance orientation, and only the most essential rules, regulations, and structures, is necessary for effective strategy execution. The study recommends maintaining competitive performance setups, leveraging teamwork, adopting and encouraging innovation-led practices, and streamlining bureaucratic processes. The study recommends that future studies adopt longitudinal and mixed-method designs, include additional organizational variables such as national culture and investigate the role of intervening or moderating variables like firm size and digital transformation on strategic plan implementation. While the findings are based on Kenyan Insurance Industry, they present insights that adopted to further scholarly discourses and inform policy formulation, leadership and organizational development, and strategic plan implementation practices.