Effects of Stakeholders’ Involvement Actions on the Performance of NHIF Branches in Western Kenya

Abstract

As a key component of strategic management, strategic planning plays an increasingly important role in stimulating organizational performance. How well NHIF offices in Western Kenya do in terms of meeting their mission to provide excellent health insurance to all Kenyans at a price they can afford will be gauged by the organization's commitment to, and success with, long-term strategic planning. Some progress has been achieved, but these changes still pose questions of fairness, efficiency, practicability, and long-term viability. This motivates the present research, which aims to determine how the National Hospital Insurance Fund's branches in Western Kenya region benefit from strategic planning techniques. The main objective of this study was to assess the effect of strategic planning practices on performance of National Hospital Insurance Fund in Western Kenya branches. The specific objectives of this study were to: determine the effect of stakeholders` involvement on the performance of NHIF branches in Western Kenya, establish the effect of environmental scanning on the performance of NHIF branches in Western Kenya and determine the effect of top management support on the performance NHIF branches in Western Kenya. The study was based on three theories namely resource-based theory, Ansoff strategic success theory and strategic choice theory. This study employed a descriptive research design to carry out an investigation between performance and strategic planning practices of NHIF. The target population for the study was 195 employees from the functional departments of NHIF in Western Kenya in the eleven branches of Kisumu, Homabay, Migori, Kisii, Nyamira, Siaya, Vihiga, Busia, Mumias, Bungoma and Kakamega. Stratified sampling technique was used to select a representative sample of 145 respondents. The primary data for the study was collected using closed ended questionnaires. The study adopted Cronbach’s metrics of alpha to determine the internal consistency of the instrument. Quantitative data was analyzed using both descriptive statistics (frequencies, percentages, means, standard deviation) and inferential statistics (Regression, Correlation and ANOVA). The findings showed a significant positive relationship between strategic planning practices and performance of NHIF in western Kenya, where strategic planning practices alone are able to explain 43.6% of the variance in the performance of NHIF. The study recommended that the management should promote a disciplined, results-driven approach to strategic planning. There should be a favourable association between strategy management methods and an organization's willingness to involve its employees in developing effective strategic planning processes.