Strategic management practices and Performance of National Hospital Insurance Fund in Nairobi city county, Kenya.
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Date
2021
Authors
Karimi., Catherine K.
Kavindah, Lucy
Journal Title
Journal ISSN
Volume Title
Publisher
International Academic Journals
Abstract
In the corporate world, the business
environment is rapidly changing
necessitating organizations to adopt
strategic management practices that give
them a competitive edge and lead to
improved performance. National Hospital
Insurance Fund has instituted strategic
management practices in bid to boost
overall organizational performance as well
as improve service efficacy and
productivity. However, the current
practices have not attained the envisaged
results. As much as various scholars have
pointed out adoption of strategic
management approaches such as strategic
planning and strategic formulation often
have a tendency to trigger improved
organizational performance, limited
studies have attempted to prove that these
practices can actually yield tremendous
results, considering the role of NHIF in the
Kenyan populace. The general objective of
the study was to determine the influence of
strategic management practices on
performance of National Hospital
Insurance Fund in Nairobi City County,
Kenya. The study’s specific objectives
were to determine the influence of;
strategic planning practices, strategic
formulation practices, strategic
implementation practices and strategic
evaluation practices on performance of
NHIF in Nairobi City County, Kenya. The
study was anchored on dynamic capability
theory, Management by objective theory
and Congruence Model Theory, which was
useful in supporting the variables of the
study. The study employed a longitudinal
descriptive research design which was
appropriate for a single organization,
which in this case was the National
Hospital Insurance Fund. The study’s
target population comprised of 250
employees from NHIF head office hailing
from human resource, administration,
research and development, marketing,
finance and strategic department. Stratified
simple random sampling technique was
utilized to choose respondents to get a
sample size of 153 respondents. The data
was acquired from primary and secondary
sources. Primary data was collected
through structured (close-ended)
questionnaires. Self-administration and
drop and pick methods were adopted for
questionnaires administration. Collected
data was analyzed using Statistical
Packages for Social Science. Both
descriptive and inferential statistics were
used. Descriptive statistics were limited to
frequency, percentage, mean and standard
deviations. Inferential statistics were
limited to Product moment correlation and
regression modelling. The research
findings were presented using tables.
Multiple regression model was adopted to
test the strength of the relationship
between variables. From the regression
model, the findings indicate that study
variables significantly influenced
performance of National Hospital
Insurance Fund. Coefficient of adjusted
determination was 0.734 which translates
to 73.4%. This indicates that variations in
dependents variable was explained by the
independent variables (strategic planning
practices, strategic formulation practices,
strategic implementation practices and
strategic evaluation practices). The
residual of 26.6% could be explained by
other factors beyond the scope of the
current study. The study concluded that
strategic management practices influence
performance of National Hospital
Insurance Fund. Further, the study
recommend that National Hospital
Insurance Fund should ensure that its
strategic formulation practices are
completely working with negligible
hitches as this contributes emphatically
towards the improvement of its exhibition
regarding the development of client base,
upheld hospitals and National Hospital
Insurance Fund commitment.
Description
An Article Published in International Academic Journal of Human Resource and Business Administration