Effect of Structure Fit on the Performance of Insurance Firms in Nairobi City County- Kenya

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Date
2023
Authors
Muiruri, TerryWinnie Wambui
Muchemi, Anne Wambui
Journal Title
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Volume Title
Publisher
IJIRAS
Abstract
Abstract: This study sets out to determine the effect of structure fit on performance of insurance firms in Nairobi City County. The study adopted both descriptive and explanatory research designs. A total of 55 registered insurance firms in Nairobi City County were targeted. A population of 521 general managers, underwriting managers, claims managers and marketing managers from the 55 registered insurance firms and employees who were not in management were targeted. A sample size of 226 respondents was purposively and randomly sampled. Questionnaires were the data collection tools where drop and pick later approach was used. Content validity was ensured by discussing the questions in the questionnaire with the supervisor while a Cronbach’s Alpha of 0.7 or above was regarded sufficient to quantify the reliability of the data collection tool. Descriptive analysis was done while inferential statistics involved linear regression. The correlation results showed a positive and significant linear correlation between structure fit (r=0.862, p=0.000) and performance of insurance firms. The regression results show a positive and significant effect of structure fit (β = 0.096, Sig. = 0.000) on performance of insurance firms which implies that structure fit affects performance of insurance firms positively. Though the strategic fit components are interrelated and have effect on the performance of insurance firms structure fit weighs more on the influence. Therefore, the study recommends that organizations should continuously work towards attaining structure fit because it affects profitability, customers’ loyalty, customers’ satisfaction and market share of insurance firms.
Description
Article
Keywords
insurance firms, structure fit, strategic fit, organization performance
Citation
Muiruri, T. W., & Muchemi, A. W. Effect Of Structure Fit On The Performance Of Insurance Firms In Nairobi City County-Kenya.