Strategic Planning Component and Performance of Insurance Companies in Rwanda: A Case Study of Old Mutual Public Limited Company
DOI:
https://doi.org/10.53983/ijmds.v15n06.015Keywords:
strategic planning, strategic goals, resource allocation, strategic quality control, organizational performance, insurance, RwandaAbstract
This study examined the influence of strategic planning components on the performance of insurance companies in Rwanda, using Old Mutual Rwanda Public Limited Company (PLC) as a case study. The research was guided by three objectives: to examine the influence of strategic goals, resource allocation, and strategic quality control on organizational performance. Grounded in Strategic Planning Theory, the Resource-Based View, Goal-Setting Theory, and Total Quality Management Theory, the study adopted a mixed-methods design integrating descriptive, correlational, and cross-sectional approaches. A census of all 151 staff members of Old Mutual Rwanda was undertaken, yielding a 100% response rate. Quantitative data were collected through structured Likert-scale questionnaires and analyzed using SPSS version 26 (descriptive statistics, Pearson correlation, and simple linear regression), while qualitative data from semi-structured interviews were analyzed thematically. The instrument was reliable (overall Cronbach's α = 0.81) and the data suitable for factor analysis (KMO = 0.812; Bartlett's test χ² = 765.432, p < .001). Findings revealed that strategic goals had a strong, significant positive effect on performance (r = 0.736; R² = 0.541; B = 0.825, p < .001), as did resource allocation (r = 0.698; R² = 0.487; B = 0.794, p < .001) and strategic quality control (r = 0.732; R² = 0.536; B = 0.826, p < .001). The study concludes that strategic planning—through well-defined goals, efficient resource allocation, and rigorous quality control—significantly enhances organizational performance. It recommends periodic goal reviews, real-time resource monitoring, and continuous quality audits. Future research should explore leadership commitment, digital transformation, and longitudinal effects on performance.
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