| dc.description.abstract | The insurance industry in Somalia operates within a unique economic and social context,
facing challenges and opportunities distinct from those in other regions. Understanding the
strategic factors that drive organizational performance within this sector is crucial for
enhancing efficiency, profitability, and sustainability. The study aimed to identify the
strategic determinants affecting organizational performance among insurance companies in
Somalia. Specifically, it sought to achieve the following objectives: to investigate how
technological factors impact the performance of insurance companies in Somalia; to
explore the effect of external environmental factors on these companies' performance; to
assess the influence of government regulations on organizational performance; and to
examine how different leadership styles affect organizational performance within the
insurance sector in Somalia. The research incorporated theoretical frameworks such as
Diffusion of Innovation, Open System Theory, and Transformational Leadership Styles
Theory. The study focused on five insurance firms: Takaful Insurance of Africa, Umma
Insurance Brokers, Amana Insurance, Baraka Insurance, and Som-Takaful Insurance,
employing a descriptive research approach. Data collection involved 73 participants,
including department heads, CEOs, and their assistants. Due to the small sample size, a
census approach was used, with standardized questionnaires distributed to the selected
individuals. Quantitative data analysis was performed using the Statistical Package for
Social Sciences (SPSS), employing descriptive statistical methods such as frequency
distribution tables and percentages. The study also utilized correlation and multiple
regression analyses to explore the relationships among variables and the impact of strategic
factors on organizational performance. To determine the significance of the model, F-tests
and Analysis of Variance (ANOVA) were conducted with a 95 percent confidence level.
The research adhered to ethical standards and concluded that several factors have a
significant impact on the organizational performance of insurance companies in Somalia.
Technological factors (β1 = 0.309, P = 0.005) positively impact effectiveness and
efficiency. The external environment (β2 = 0.097, P = 0.003) affects performance, showing
that adaptability to market trends and economic factors enhances outcomes. Government
policies (β3 = 0.278, P = 0.008) are crucial, with favorable regulations improving
operational effectiveness. Lastly, leadership styles (β4 = 0.210, P = .001) are key drivers,
with effective leadership practices enhancing performance. These findings highlight the
importance of technology, adaptability, supportive policies, and leadership in driving
success. Based on findings, the study therefore concluded that external environmental
factors, government policies, and leadership styles significantly influence organizational
performance in Somalia's insurance sector. The study hence recommended that insurance
companies in Somalia should prioritize continuous technological adoption, enhance
adaptability to external factors, strengthen compliance with government policies, and foster
effective leadership practices to improve organizational performance. | en_US |
