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Performance-Driven Practices and Strategic Execution: Examining
the Influence of Market Culture on Strategic Plan Implementation in
Kenya’s Insurance Industry
Mung’athia Samson
1
, Dr. Nganu Margaret
2
, Dr. Nzioki Susan
3
1
Postgraduate Student, Machakos University, School of Business, Economics, Hospitality and Tourism
Management
2,3
Lecturer, Machakos University, School of Business, Economics, Hospitality and Tourism Management
DOI: https://dx.doi.org/10.47772/IJRISS.2025.910000225
Received: 12 October 2025; Accepted: 18 October 2025; Published: 08 November 2025
ABSTRACT
This study examines the impact of market culture on the execution of strategic plans in the insurance industry in
Kenya. Grounded on the Competing Values Framework (CVF) model developed by Robert Quinn and John
Rohrbaugh (1983), the study explores how core aspects of market culture such as performance orientation, goal
achievement, customer centricity and competitiveness influence strategy implementation. Market culture is
epitomized by its results-driven approach, strong external focus and a strong emphasis on success through
excellent customer service and superior performance. These characteristics are essentially relevant in the
insurance industry which is highly regulated and dynamic thus requiring agility and customer service for long-
term competitiveness and success. A descriptive research design was adopted, drawing 180 respondents from 30
insurance firms across Kenya. Data was collected using structured questionnaires to capture the perception of
the employees on the effect of market culture on strategy execution practices. The collected data was analyzed
using descriptive statistics, repeated measures ANOVA, factor analysis, and multiple regression analysis to find
out the relationship between the variables and examine the strength of the market culture type. The findings
indicated that market culture was the most dominant cultural dimension in the Kenyan insurance industry with
a mean score of 4.06, highlighting the sector-wide commitment to competitiveness, productivity, and external
positioning. Despite not being a statistically significant predictor strategic plan implementation, market culture
contributed hugely to organizational focus, performance discipline, and accountability. The research concludes
that market oriented cultural practices remain a crucial enabler of strategy execution, particularly when balanced
with collaboration and flexibility. The study recommends that insurance companies develop performance metrics
corresponding to strategic goals, entrench customer-focused systems, and incorporate competitive intelligence
into strategic planning processes. Such practices would enable firms to translate market driven values into long-
term strategic results, strengthening both competitiveness and sustainable success.
Keywords: Market culture, Organizational culture, Strategic plan implementation, Insurance industry,
Competing Values Framework, Kenya.
INTRODUCTION
Modern day firms operate in increasingly dynamic, competitive and fast-evolving environments, necessitating
strategic flexibility, strong performance and competitive orientations. In this context, organizational culture
plays a vital role in determining the efficiency of strategy execution. Among the four cultural types espoused in
the Competing Values Framework; market, adhocracy, clan, and hierarchy, market culture stands out for its
emphasis on results, external focus, and urge for competitive success (Gong, Jiang & Liang, 2022). The culture
prioritizes customer satisfaction, attainment of set targets, and productivity aligning organizations initiatives
with measurable and tangible results. In the Kenyan insurance sector, where competition is stiff and customer
retention a priority, market culture becomes a vital determinant of strategic efficiency.
In spite of its significance, the connection between market culture and strategy execution remains understudied,
especially in the dynamic industries in developing economies like Kenya. Insurance industry players are met
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often met with execution gaps despite having well-formulated strategic plans, raising issues about the role of
organizational culture in strategy execution success (Courser, 2024). Comprehending whether competitive and
results-focused culture enhances or hinders effective strategy execution is crucial for both practitioners and
scholars. Thus, this study evaluates how key aspects of market culture; competitiveness, goal-achievement,
customer centricity, and performance orientation, influence the implementation of strategic plans in the Kenyan
insurance sector. The findings of the study aim to provide deeper insights into how cultural alignment enhances
or inhibits strategy implementation in dynamic business environments.
Background of the Study
Effective execution of strategic plans remains one of the most vital yet challenging elements of organizational
success. While many organizations commit considerable amount of resources to developing strategic plans, very
few attain their intended targets due to gaps in execution. The conversion of strategic plans into tangible and
measurable outcomes calls for not only effective managerial practices but also corroborative organizations
behaviors and values. It is within this backdrop that organizational culture becomes essential, as it impacts how
employees translate goals, make decisions and participate in shared organizational goals (Varrier, 2025). A well
aligned and strong organizational culture provides the seamlessness necessary for successful strategy
implementation across departments and levels.
Among the four culture types under the Competing Values Framework (CVF), market culture stresses
competitiveness, performance excellence, and goal achievement. It emphasizes customer satisfaction, results,
and external positioning; all of which directly impact an firms capacity to deliver on strategic initiatives (Kim
& Jung, 2022). In sectors marked by fast changing market conditions and customer-focused set-ups as is the case
with the Kenyan insurance sector, a performance-focused culture can lead to accountability and operational
discipline. Market culture inspires employees to set ambiguous targets, pursue efficiency, and measure outcomes;
all of which are vital for realizing strategic goals in competitive business environments.
In the Kenyan insurance industry, companies operate in an increasingly dynamic environment characterized by
regulatory shifts, changing customer expectations, and technological disruptions. These aspects demand
organizational cultures that strike a balance between control and adaptability coupled with innovation and
competitiveness. Market culture presents a framework for streamlining internal efforts to attain external success,
ensuring that strategic plans are not only well-designed but also efficiently executed (Batule et al., 2025).
Comprehending how market culture impacts strategy execution is therefore necessary in closing the gap between
strategy planning and implementation, enabling insurance companies to attain long-term performance and
sustainable strategic impact.
THEORETICAL FRAMEWORK
This study is anchored on the Competing Values Framework (CVF) model developed by Quinn and Rohrbaugh
in (1983), a widely renown model for categorizing organizational culture. The CVF models opines that every
organization operates within a framework defined by two facets; internal vs. external firm focus and stability vs.
flexibility (Zen et al., 2021). These interlocking facets produce four different culture types; market, adhocracy,
clan, and hierarchy. Each of the four culture types impacts organizational behavior, strategic orientation, and
leadership style in a unique way. The model offers a lens through which to examine how organizational values,
behavior, and priorities inform performance, adaptability, and strategy execution.
Within this framework, market culture is placed in the control and external focus quadrants, stressing goal
achievement, competitiveness, and productivity. Firms with dominant market culture emphasize performance
indicators such as market share, profitability, and customer satisfaction (Faramarzi, Worm & Ulaga, 2024).
Leadership in such set ups tends to results oriented, focusing on set goals, measurable outcomes, and targets.
This organizational orientation makes market culture especially relevant to strategic plan execution where
successful implementation depends on the ability to convert high-level plans into practical results. By inculcating
internal accountability and external awareness, market culture orients firm’s energy toward achieving long-term
strategic competitiveness.
INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)
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In the case of Kenyan insurance industry, where companies deal with enormous market competition, evolving
consumer needs, and changing regulatory environment, the CVF model presents a comprehensive theoretical
bases for evaluating how culture impacts strategy implementation. Market culture supports flexibility in
responding to external pressures while maintaining performance discipline within the firm (Kafetzopoulos &
Katou, 2024). The model also allows for contrasting across cultural orientations, offering awareness into market-
oriented characteristics interact with collaboration and flexibility to shape strategic results. Thus, the CVF model
not only informs this study conceptually but also underpins the dynamic balance needed between adaptability,
competitiveness, and long-term strategic performance.
Problem Statement
Despite the extensive adoption of strategic planning practices across the Kenyan insurance industry, many firms
continuously struggle to translate strategic plans into tangible outcomes. While many of the firms stress
performance orientation, competitiveness, and target achievement, these efforts often fail to achieve expected
outcomes. One possible reason for this disconnect is the nature and strength of organizational culture;
particularly market culture which stresses results, customer focus, and accountability. However, there is little
empirical evidence showing how market culture influence or inform the implementation of strategic plans. This
study thus seeks to close that gap by evaluating the impact of market culture on strategic plan execution.
Research Objective
To determine the influence of organizational market culture on implementation of strategic plans in the insurance
industry in Kenya.
Significance of the Study
The results of this study contribute considerably to the expanding body of research on organizational culture by
presenting empirical findings on the role of market culture in influencing strategy execution. By evaluating how
customer focus, competitiveness, and performance attributes impacts execution outcomes, the research deepens
the theoretical comprehension of the relationship between culture and strategy. Practically, the findings provide
the industry players with actionable evidence on how to reconcile performance systems, customer service
initiatives, and reward structures with strategic goals. Eventually, the research features how inculcating a strong
market culture can strengthen efficiency, accountability, and general organizational effectiveness.
LITERATURE REVIEW
Market Culture in the CVF
Market culture is hugely results-oriented, stressing customer satisfaction, external competitiveness, and
continuous innovation. It is based on the belief that the external business environment is highly aggressive,
requiring companies to offer superior value to remain relevant in the market place. In market market-oriented
organizations leadership focus on performance metrics, accountability, and goal clarity, inspiring employees
through challenging but attainable targets (Okoro, 2022). Such practices foster confidence and efficacy within
the organization (Boikanyo, 2024). However, obsession with external achievements may risk forfeiting
employee welfare and internal cohesion, pointing to the need to strike a balance between productivity and firm’s
well-being.
Market Culture and Strategic Implementation
Market-focused cultures paly a critical role in ensuring effective strategy execution by fostering a strong focus
on performance, results, and external competitiveness. According to Akpa, Asikhia, and Nneji, (2021) such
cultures inspire accountability, goal clarity, and clear relationship between organizational and individual goals.
Organizations that value customer satisfaction and external alignment often exemplify productivity and superior
market responsiveness. Employees in these set-ups are inspired to meet measurable targets as performance-based
assessment systems help transform strategic goals into tangible outcomes. This emphasis on measurable
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outcomes also strengthens coordination across departments making sure that all efforts are aimed at realizing a
firm’s strategic goals.
However, while market culture fosters performance orientation, it can also generate potential challenges if not
balanced with collaboration and flexibility. Overemphasis on performance may discourage risk-taking,
teamwork, and creativity, resulting into short-term focus or employee exhaustion. Obsession with targets may
also hamper innovation and knowledge sharing, both of which are critical for sustained strategic performance.
Thus, successful strategy execution in market-focused organizations needs a delicate balance between external
success and internal cohesiveness. As noted by Gutierrez et al., (2022), firms that adopt a combination of strong
performance orientation with adaptive and supportive cultural characteristics are more poised to achieve
sustained strategic performance in competitive set ups.
Empirical Studies
Several studies have evaluated the relationship between organizational culture and strategic plan implementation
across sectors and contexts. Kafetzopoulos and Katou (2024) found that market-inclined cultures foster strategic
flexibility by ensuring alignment between business processes and market demands. Likewise, Al Maazmi,
Abubakar, and Raziq (2024) concluded that market culture had a positive influence on innovation orientation
among the SMEs in UAE, particularly when moderated by effectuation. Buhumaid (2022), found out that
balanced cultural incorporation is necessary for effective management of Dubai Government Organizations,
while Aichouche et al. (2022) that organizational culture was vital for knowledge diffusion and storage.
Generally, these findings reiterate the importance of performance-based and externally driven cultures in
realizing strategic adaptability and execution efficiency.
In Kenya, several studies several studies uphold the positive role of market culture in strategy execution. Mugo
and Namusonge (2023) concluded that all the four cultural elements under CVF had a considerable influence on
strategy, with market culture having the strongest influence. Nderitu, Waiganjo and Orwa (2021) found out that
goal-achievement and competitiveness influence and impact strategic plan implementation in private
universities. Likewise, Ombachi and Deya (2022) found out that competitive organizational cultures lead to
better outcomes in commercial banks in Kenya, while Njoroge (2023) underscored that accountability-oriented
organizational cultures account for over 60% of variations in strategic plan implementation among state
corporations. Conclusively, these studies reiterate the critical role played by market culture in strengthening
strategic results across industries.
Conceptual Framework
The conceptual framework is founded on the premise that market culture; espoused performance-orientation,
customer focus, and competitiveness, directly impacts strategy execution results. A strong market culture lines
up firm behaviors and systems towards attaining measurable outcomes, inculcating accountability and external
responsiveness. When performance targets are clear and customer contentment prioritized, resources are
effectively mobilized, and implementation process becomes more refined. The dependent variable, strategy
execution, is thus manifested through effective resource alignment, execution efficiency, and goal achievement.
This framework shows that the strength of market culture influences the effectiveness of translating strategic
goals into actionable and measurable outcomes within organizations.
Market Culture
Strategic Plan
Implementation
Independent Variable
Dependent Variable
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METHODOLOGY
Research Design
This study deployed a descriptive research design to evaluate the relationship between the market culture and
strategy execution within the Kenyan insurance sector. The design was suitable as it facilitated methodical
collection and analysis of quantitative data without modifying variable, allowing for an unbiased assessment of
the prevalent firm dynamics. Through this design, the study gained insightful understanding into how market
culture elements such as performance focus, customer orientation, and competitiveness, suffice in practice and
impact strategic plan implementation. The design further allowed the use of structured questionnaires and
statistical methods to alienate trends, variations, and associations across different industry players, thereby
strengthening the validity and reliability of the study.
Population and Sampling
The target population for the study was all the 59 insurance firms registered and licensed by the Insurance
Regulatory Authority (IRA), in both general and life categories. The study applied a multistage sampling
technique, where Nassiuma’s (2000) sample size determination formula was deployed to arrive at a sample size
of 30 insurance firms. Then systematic sampling technique was used to ensure fair representation across firm
ownership, specialization, and size thus minimizing selection bias (Dubey & Kothari, 2022). From of the 30
firms, six respondents were purposively selected based on their role in strategic planning and execution process,
resulting to 180 respondents. The respondents included chief executive officers, human resource managers,
finance managers, departmental heads, and strategy officers, offering informed apprehension into the influence
of market culture on strategy execution in the Kenyan insurance industry.
Data Collection
Data was collected through the use of a structured questionnaire designed to evaluate respondent’s perception of
market culture and strategy execution practices in the Kenyan insurance industry. The data collection instrument
included Likert-scale items and open-ended questions, based on the Organizational Culture Assessment
Instrument (OCAI) developed by Cameron and Quinn (2011) as well as other relevant strategic management
literature. The assessment tool captured key aspects of market culture such as competitiveness, customer
orientation, and performance focus, alongside strategy implementation indicators. To ensure comprehensiveness
in coverage and reliability of data, the questionnaires were administered to 180 participants drawn from the
sampled 30 insurance firms. To maximize response rate and consistency, the questionnaires were distributed both
physically and electronically.
Data Analysis
Analysis of data began with the application of descriptive statistical analysis to summarize and present the
dimensions of market culture and elements of strategy execution across the selected insurance companies.
Mathematical tools such as frequencies, means, and standard deviations were used to analyze the perceptions of
the respondents regarding major market culture aspects such as competitiveness, customer orientation, and
market performance. These descriptives presented a highlight of how market-oriented practices are integrated
within the Kenyan insurance industry. To ensure reliability and validity, factor analysis was carried out to confirm
construct validity, while ANOVA and regression analysis were used to evaluate the linkage between market
culture and strategy execution, presenting empirical evidence connecting performance-driven values to effective
strategic plan implementation.
RESULTS
The results of the study revealed that among the four types of culture under CVF, market culture had the highest
mean score (M = 4.06), indicating that most insurance firms in Kenya lay emphasis on competitiveness,
performance excellence, and customer-satisfaction. These findings indicate that most firms within the Kenyan
insurance industry operate with an external focus, earnestly attempting to outperform competitors and deliver
quality customer service. The popularity of market culture reflects the industrys dynamic and results-oriented
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environment, where attaining tangible results and maintaining long term competitive advantage are key
priorities. Such an organizational culture fosters accountability, discipline, and continuous performance
optimization among the members of an organization.
However, regression analysis results indicated that market culture was a statistically insignificant predictor of
strategic plan implementation (β = 0.024, p = 0.525). Despite being statistically insignificant, the culture
contributed positively to goal alignment, accountability, and performance monitoring systems. Organizations
with stronger market culture enjoyed better alignment between Key Performance Indicators (KPIs) and firm’s
strategic objectives. These findings allude that while market-focused attributes inculcate performance awareness
and clarity of goals, they may not directly deliver consistent strategic execution outcomes. This means that other
cultural or contextual factors could be moderating factors in this relationship.
DISCUSSION
The results of the analysis show that while market culture does not single-handedly predict strategy execution,
it forges a strong bases for goal alignment and performance discipline. Its emphases on accountability,
competition, and tangible results reinforces organizational push towards attaining results. However, the findings
reveal that in the absence of complimentary aspects such as teamwork, innovation and adaptability, market
culture may create inflexibility. Therefore, successful strategy execution in the Kenyan insurance industry
depends not only achievement orientation but also on organizational culture that fosters flexibility, collaboration,
and responsiveness to market dynamics.
These findings were in tandem with previous studies by Chen and Lin (2021) and Agustian et al. (2023), which
reiterate that market culture strengthens performance through competitiveness and clear objectives.
Nevertheless, the existing studies also caution that excessive obsession with targets and performance metrics can
stifle adaptability and impede innovation. Likewise, the current study indicates that while insurance industry
players with strong market culture are synonymous with higher performance awareness, they are likely to neglect
the human and creative aspects essential for long-term strategic success. Thus, striking a balance between
performance drive and agility remains necessary for sustainable execution effectiveness.
For the industry practitioners, the findings emphasize the significance of aligning performance measurement
metrics with firm’s strategic goals. Leadership should not only fixate on performance excellence but also
inculcate agility and continuous learning to remain reactive to the market dynamics. Integrating customer
intelligence and feedback loops into strategic plan implementation can strengthen responsiveness, creativity, and
innovation. Moreover, incorporating element of supportive subcultures can help moderate the competitive
aggressiveness inculcated by market culture, nurturing a more sustainable and holistic approach to strategy
execution.
CONCLUSION AND RECOMMENDATIONS
Conclusion
The study deduces that market culture plays a critical yet mundane role in strategy execution with the Kenyan
insurance industry. By stressing accountability, competitiveness, and performance, market culture cultivates goal
alignment and discipline necessary for realizing strategic objectives. However, the results also indicate that
market culture alone is inadequate to secure successful strategy execution. When overly relied upon, it can result
to rigidity and forfeiture of teamwork and creativity. Thus, firms should incorporate market culture with
collaborative cultural elements such as open communication, adaptability, and knowledge sharing to strengthen
agility and responsiveness. A well-balanced cultural positioning definitely fosters execution efficiency, strategic
coherence, and long-term organizational performance.
Recommendations
Based on the findings of the study, firms should develop and progressively monitor performance indicators that
are directly aligned with their strategic goals. Such alignment ensures that all departments work seamlessly and
cohesively towards tangible results. Leadership should also cultivate customer-centered execution approaches
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that link performance to customer satisfaction and market responsiveness. However, organizations should take
caution not to overemphasize competitiveness at the expense of teamwork and collaboration. Striking a balance
between performance orientation and teamwork, flexibility, and learning ensures that firms are able to adapt to
the changing environments while retaining accountability and competitiveness. Eventually, inculcating a culture
that aligns competitiveness with collaboration enhances both implementation of strategic plans and sustainable
organizational growth.
Future studies should examine how market culture relate with digital transformation, leadership styles, and
external market dynamics to impact execution of strategic plans. Examining these interrelations would offer a
more holistic apprehension of how different environmental and organizational factors influence success of
strategic plans. In addition, comparative research across multiple industries would help understand whether the
effects of market culture vary between industries, sectors, and regulatory contexts. Longitudinal studies may also
present an understanding of how changes in market culture over time influence sustained organizational
performance and innovation, presenting deeper awareness for policy makers and practitioners in the insurance
and wider business sectors.
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