Middle Level Managers’ Involvement, Organizational Culture and Strategy Execution in Insurance Companies in Kenya

Abstract

The objective of the current research was to define the impact of middle-level managers' involvement, organizational culture, and strategy implementation in Kenyan insurance companies. The study employed the following research questions: What effect does championing alternatives have on strategy implementation in Kenyan insurance companies? How does information synthesis affect strategy execution in Kenyan insurance companies? In Kenyan insurance companies, how much does facilitating adaptability influence strategy execution? How does deliberate strategy implementation affect strategy execution in Kenyan insurance companies? In Kenyan insurance businesses, how does culture of an organization influence the association between middle-level management participation and plan execution? The study was informed by Schein’s organizational culture model, Social cognitive theory, theory of change, and middle manager role theory. The positivist philosophy impacted the study, which used a descriptive survey and a correlational research approach. 436 middle level managers from Kenyan insurance companies took part in the survey. A sample size of 209 middle level managers was established from the overall population using stratified and random sampling processes and the Yamane formula of 2001, and structured questionnaires were administered to get primary data. Only 174 surveys out of a total of 209 were returned (83.2 percent). The data was analyzed using descriptive and inferential statistics. The Statistical Package for Social Sciences (SPSS) Version 23 statistical software tool was used to analyze the data. To present the findings, tables and graphs were constructed. Multiple linear regression analysis illustrated that the influence of championing alternatives positively and significantly predicted strategy execution, R2= 0.322, F(1, 172) = 81.796, p.05, = 0.301, p.05, rejecting the null hypothesis that championing alternatives have no statistical influence on strategy implementation in Kenya's insurance sector. The multiple linear regression analysis revealed that synthesizing information strongly predicts strategy execution, R2= 0.086, F(1, 170) = 16.045, p.05, = 0.255, p.05. As a result, the null hypothesis that information synthesizing had no significant impact on strategy implementation in the Kenyan insurance industry was rejected. Multiple linear regression analysis revealed that the influence of facilitating adaptability significantly predicted strategy execution, R2= 0.216, F(1, 172) = 47.263, p 0.05, = 0.279, p.05, rejecting the null hypothesis that facilitating adaptability has no critical impact on implementation of strategy in insurance sector of Kenya. The analysis of multiple linear regression demonstrated that the effect of deliberate strategy strongly predicted strategy execution in the fourth research question, R2= 0.305, F(1, 172) = 75.589, p.05, = 0.310, p.05. As a result, the null hypothesis that deliberate strategy has no impact on execution of strategy in Kenya's insurance business was rejected. Finally, moderated multiple linear regression discovered that company culture had a moderating effect on the link amongst middle level management engagement as well as strategy execution (R2=0.017, F(5, 168) = 320, p.05, = 0.059, p.05. The null hypothesis that the culture of an organization has no influence on the link between middle-level management engagement and strategy execution in Kenya's insurance business was rejected. According to the findings, middle level managers have a favorable and considerable impact on strategy execution. According to the findings, promoting alternatives, synthesizing data, facilitating flexibility, and implementing deliberate strategy have a favorable influence on implementation of organizational strategy. The research again found that the culture of an firm has a considerable impact on the association amongst middle manager influence and strategy execution. According to the study, insurance executives should include middle management in the creation and application of initiatives. Future research should take into account the moderating effect of employee experience, and the study should be expanded to include other trading firms in the financial industry, for instance banks.