THE LINK BETWEEN STRATEGY ADOPTION AND THE PERFORMANCE OFINSURANCE FIRMS WITHIN MERU COUNTY

Abstract

The study focused on the link between strategy adoption and performance of insurance firms within Meru County, Kenya.Strategy is the organized and proactive attempt of an organization to set up basic reasons, aims, guidelines and plans. Itentails implementation of complete strategies by putting in to practice guidelines and plans to acquire aims and essentialorganizational function. The study investigated the link between growth strategy, and the performance of insurance firmsin Meru County.The study used correlational study design. A sample of 39 respondents was selected purposively fromthe managers and unit managers of insurance firms in Meru. The study used census study methodology. The study usedprimary data. Descriptive statistics wasused to analyze the data. Logistic regression was used to link the relationshipbetween independent variables and dependent variables to test the hypothesis. Descriptive data was presented infrequency tables, percentages and in figure forms. The study found that growth strategy had a significant relationshipwith the performance of insurance firms. These findings provide help to researchers and students and lays foundation forfurther studies in insurance firms.The study recommends that insurance firms adopt growth strategy and to gain
competitive advantage.