Influence of Strategic Alignment On Performance of Insurance Brokerage Firms in Nairobi County, Kenya

Abstract

This study seeks to understand how strategic alignment impacts the performance of insurance brokerage firms in Nairobi County, Kenya. Most of the firms in this industry struggle to achieve performance goals because their objectives and daily operations are not properly aligned. As such, this study examines the impact of organizational structure, strategic communication, resource allocation, and performance metrics on firm performance. The study uses a correlation research design, in which a sample of 119 firms was selected from a population of 170 registered insurance brokerage firms in Nairobi County. The data was obtained using structured questionnaires and analyzed using both descriptive and inferential statistics. The results revealed significant positive relationships between organizational structure (β = 0.333, p = 0.001), strategic communication (β = 0.272, p = 0.000), resource allocation (β = 0.334, p = 0.000), and performance metrics (β = 0.178, p = 0.005) with the firms' performance. It was noted that effective strategic alignment, such as flexible organizational structures, enhanced communication, and resource allocation, positively impacts performance. It was recommended that adopting cross-functional teams, prioritizing resource scheduling tools, and aligning performance metrics to improve operational and financial outcomes.