Strategy Implementation and Sustainability of Insurance Companies in Rwanda
DOI:
https://doi.org/10.70619/vol5iss1pp59-70Keywords:
Strategy implementation, Sustainability, Insurance Companies, RwandaAbstract
One of the most crucial aspects that allow organizations/firms to survive and grow is having a sound strategy implementation. This has been linked to improved performance and sustainability among various organizations and firms in different industries. However, insurance industries in Rwanda face instabilities due to increased dissatisfaction among the clients, slow growth rate and underperformance. As the days go by, the companies keep failing while others make strategic moves of purchasing small insurance companies for merging purposes and utilizing their resources with a long-term goal of securing the market size and sustainability assurance. As such, this study examined the effect of strategy implementation on the sustainability of insurance companies in Rwanda. A descriptive survey research design alongside a positivist philosophy was adopted. The target population included all the insurance companies in Rwanda (14) and their management team (252). A census sampling method was utilized. Questionnaires were used for data collection. Pilot testing was conducted to assess questions of validity and reliability of the data. The quantitative data collected was analyzed using descriptive and inferential statistics with the help of Statistical Package for Social Sciences (SPSS) window version 21. From the findings, it was established that there is a statistically significant influence of strategy implementation on the between strategy implementation and sustainability of the insurance companies in Rwanda (b=1.025, p<0.05). The study concluded that the strategy implementation explained 81.1% of the variation in the sustainability of the insurance companies. Therefore, the study recommends that for the management of the insurance companies to ensure that respective strategies are implemented successfully, there is a need to provide incentives to the employees and other stakeholders in the company.
References
Abdiwali, K. A. (2019). Effects of strategic management practices on firm performance of medium and large telecommunication companies in Mogadishu, Somalia. International Journals of Academic and Research, 1(2), 57−71.
Addae-Korankye, A., & Aryee, B. A. (2021). The relationship between strategic management practices and the growth of Small and Medium Enterprises (SMEs) in Ghana. Business: Theory and Practice, 22(1), 222-230.
Aguoru, C.N., Orsaah, A., S., & Umogbi, M. (2018). Effect of Strategic Analysis and Strategy Implementation on Service Quality of a Popular Telecommunication Company in Nigeria. International Journal of Scientific Research and Management, 6(04), EM-2018-305-311.
Amurle, G. s. (2013). The role of strategy planning on the performance of small and medium enterprises information communication and technology (ICT) sector in Kenya. Nairobi, Kenya.
Andrews, R., Boyne, G. A., Law, J., & Walker, R. M. (2011). Strategy implementation and public service performance. Administration & Society, 43(6), 643-671.
BNR (2016). Financial stability report. Kigali: BNR.
Bulińska-Stangrecka, H. & Bagieńska, A. (2020). Intangible resources for an organization’s sustainability potential. Entrepreneurship and Sustainability Issues, 8(1), 741-761.
Campbell, J. M. & Park, J. (2017). Extending the resource-based view: Effects of strategic orientation toward community on small business performance. Journal of Retailing and Consumer Services, 34(C): 302-308.
Černevičiūtė, J. & Strazdas, R. (2018). Teamwork management in Creative industries: factors influencing productivity. Entrepreneurship and Sustainability 6(2): 503-516.
Chaimankong, M. & Prasertsaku, D. (2020). Impact of Strategy Implementation on Performance of Generic Strategy: Evidence from Thailand. The South East Asian Journal of Management, 6(45), 32-39.
George, D. & Mallery, P. (2003).SPPS for Windows step by step: A simple guide and reference. (4thed.). Boston: Allyn and Bacon.
George, B., Walker, R.M., & Monster, J. (2019). Does Strategic Planning Improve Organizational Performance? A Meta-Analysis. Public Administration Review, 79(6), 810-819.
Grace, S. (2013). The role of strategic planning on performance. Nairobi, Kenya.
Heil, A. (2013). Systems Theory. Retrieved from https://www.siue.edu/~adheil/Systems%20Theory%20Paper.pdf
Hill, C., Jones, G., & Schilling, M. (2014). Strategic Management Theory: An Integrated Approach. Cengage Learning.
Irawanto, D. W. (2015). Employee participation in decision making: Evidence from state-owned enterprise in Indonesia. Management Journal of Contemporary Management Issues, 20(1), 159-172.
Kihara, A. S. (2016). Influence of Strategic Contingency Factors on Performance of Large Manufacturing Firms in Kenya. MA thesis: Nairobi University.
Kihara, P., Bwisa, H. & Kihoro, J. (2016). Strategic Direction as an Antecedent between Strategy Implementation and Performance of Small and Medium Manufacturing Firms in Thika Sub-County, Kenya. Asian Journal of Humanities and Social Studies, 5(4), 52-55.
Kilile, F.M., Munga, J. & Were, E. (2018). The Influence of Strategy Implementation on Organizational Performance of Public Sector Organizations in the Ministry Of Tourism in Kenya. International Journal of Business Management & Finance, 1(41): 711-732.
Mailu, R. N., Ntale, J. F. & Ngui, T. K. (2018). Strategy implementation and organizational performance in the pharmaceutical industry in Kenya. International Academic Journal of Human Resource and Business Administration, 3(2), 33-47.
Muchira, W. N. (2013). Relationship between Strategy Implementation and Performance in Commercial Banks in Kenya Nairobi.
Munge, Z.N. & Kitiabi, R. (2017). Challenges of Strategy Implementation by Insurance Companies in Kenya. International Journal of Finance and Accounting, 2(5), 1–22.
Musalika, B., Kule, J.W. & Kibachia, M.J. (2016). Impact of Strategic Plan Implementation on Organizational Performance in Manufacturing Industry in Rwanda: A Case Study of Bralirwa Ltd. The International Journal of Business and Management, 4(5).
Njoroge, E. (2018). Effects of Strategic Planning on Organizational Performance: A Case of Event Planning Firms in Nairobi CBD. MBA Thesis: United States International University – Africa.
Phina, O. N. (2020). Effects of Strategic Management on Organizational Performance in Manufacturing Firms in South-East Nigeria. Asian Journal of Economics, Business and Accounting, 15(2), 24–31. https://doi.org/10.9734/ajeba/2020/v15i230211
Saunders, M., Lewis, P. & Thornhill, A. (2008). Research methods for business students (fifth edition). Prentice Hall, Financial Times.
Sehoa, M. F. (2015). Implementation of performance management system on the performance of municipal section 57 managers in the Capricorn District Municipality, Limpopo Province. MPA Thesis: University of Limpopo.
Sibomana, J.B., Ndikubwimana, J.B., Dukunde, A., & Nalubegwa, C. (2020). The Contribution of Life Insurance Companies to the Gross Domestic Product in Rwanda. A Case of SORAS-VIE LTD (2010 – 2017). East African Journal of Science and Technology, 11 (1), 110–120.
Surbhi, S. (2017). Difference between Census and Sampling. Retrieved from https://keydifferences.com/difference-between-census-and-sampling.html
Uwanyiligira, J. (2021). Strategic Management Practices and Service Delivery in Public Institutions in Rwanda: A Case of National Land Centre. International Journal of Scientific and Research Publications, 11(1), 119-138.
Wairimu, N. & Theuri, F. (2014). Factors That Influence the Level of Staff Involvement in the Strategic Planning Practice in Public Institutions. Journal of Business and Management (IOSR-JBM), 16(4), 21-27.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Jean Pierre Bakurirehe, Dr. Rose Litunya, PhD, Dr. Antony Sije, PhD, Dr. S. O. Wekesa, PhD
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
