AGILE STRATEGIC PLANNING AND ORGANIZATIONAL PERFORMANCE OF INSURANCE COMPANIES IN NAIROBI COUNTY, KENYA.
Keywords:
Agile Strategic Planning, Innovation Agility, Operational Agility, Organizational Performance, Insurance CompaniesAbstract
Agile strategic planning enables rapid adaptation to evolving market innovations and effective resource management to address emerging challenges and opportunities. This approach enhances an organization's ability to thrive, stay resilient, and achieve long-term sustainability. For insurance companies, success hinges on their ability to adjust to shifting risks, market dynamics, and customer demands. However, insurance sector in Kenya continues to struggle with maintaining sustainable performance, particularly in terms of premium growth. This research aimed to assess how agile strategic planning influence the organizational performance of insurance companies in Nairobi County, Kenya. The specific objectives included: innovation agility on organizational performance, and operational agility on organizational performance of insurance companies Nairobi County, Kenya. The study was grounded in survival-based theory, and absorptive capacity theory. A descriptive research design was employed. The target population consisted of 42 insurance companies operating in Nairobi County. The study focused on managers responsible for risk and compliance, marketing and customer experience, finance, and operations within each insurance company. The insurance companies served as the units of analysis, while the managers were the units of observation. The researcher included 4 respondents from each of the 42 insurance companies, resulting in a total study population of 168 respondents. A sample of 61 respondents was obtained from the population of 168 using systematic random sampling. Data analysis utilized both descriptive and inferential methods, aided by Statistical Packages for Social Sciences (SPSS), with findings presented in tables. The pilot study confirmed that the research instrument is valid and reliable for assessing agile strategic planning and organizational performance in insurance companies in Nairobi County, Kenya. The regression analysis confirmed that agile strategic planning significantly influences organizational performance, explaining 80.5% (R² = 0.805) of the variation in performance. Among the four agility dimensions, operational agility (B = 0.4995, p < 0.000) had the strongest impact, followed by innovation agility (B = 0.4123, p < 0.000). The study concludes that firms that integrate operational flexibility, digital transformation, and customer-driven strategies achieve higher efficiency, revenue growth, and market adaptability. However, challenges in real-time resource reallocation and execution of innovation strategies limit the full realization of agility benefits. To enhance performance, firms should invest in automated processes, improve real-time decision-making, and foster a culture of continuous innovation. Additionally, firms should streamline bureaucratic inefficiencies, leverage predictive analytics for resource planning, and strengthen leadership commitment to agility initiatives to ensure long-term sustainability and competitiveness.
Key Words: Agile Strategic Planning, Innovation Agility, Operational Agility, Organizational Performance, Insurance Companies
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