Strategy Implementation and Organization Performance: A Case of National Hospital Insurance Fund in Kenya
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Date
2021
Authors
Simiyu, Brenda M.
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
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.
Description
A Research Project Submitted to the School of Business in Partial Fulfillment of the Requirement for the Award of Degree of Master of Business Administration (Strategic Management Option) of Kenyatta University, March, 2021
Keywords
Strategy Implementation, Organization Performance, A Case of National Hospital Insurance Fund, Kenya