Strategy Implementation and Organization Performance: A Case of National Hospital Insurance Fund in Kenya
Simiyu, Brenda M.
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The Kenya Vision 2030 acknowledged social health insurance as one of the pillars for achieving universal health coverage in Kenya. In this regard, the National Hospital Insurance Fund has supported reforms to make it one of the main drivers of universal health coverage. National Hospital Insurance Fund has undergone various internal restructurings in order to achieve a competitive edge in the currently highly dynamic insurance sector. National Hospital Insurance Fund has formulated a large number of strategies relating to quality management, cost streamlining, income maximization, financial mix optimization, and penetration of the market, production of goods, integrated communication and operational performance. Despite this, National Hospital Insurance Fund still suffers from poor customer satisfaction. The general objective of the study sought to examine the effect of strategy implementation on performance of National Hospital Insurance Fund in Kenya. The study specifically sought to: determine the effect of organizational leadership, organizational structure, organizational culture, organizational communication on performance of National Hospital Insurance Fund in Kenya. The study was anchored on resource-based view theory, situational leadership theory and the behavioral theory of the firm. The study applied a descriptive research design and the target population was 110 employees of National Hospital Insurance Fund. To select a sample size of 66 respondents, the study used stratified sampling technique. Questionnaires were used to collect primary data Pilot test was performed to test questionnaire reliability and validity. The study used Cronbach’s Alpha coefficient to determine the reliability of the research instrument. Data analysis employed descriptive statistics to analyze data supported by the Statistical Package for Social Sciences (SPSS) to calculate frequencies, percentage mean and standard results of deviation. Multiple Linear Regression model was used to determine influence of independent variables on the dependent variable. The study findings revealed that organization structure, organizational culture and communication had positive and significant effect on performance of National Hospital Insurance Fund in Kenya. On the other hand, organizational leadership was found to have an insignificant effect on performance of National Hospital Insurance Fund in Kenya. This study concluded that strategy implementation factors which include organisation structure, organization culture and communication play a significant role in firm performance. The study recommends that management of organisation should emphasize on strategy implementation in order to improve the performance of their organisations.