Performance of Insurance Companies in Kenya: Does Transformation Capacity Matter?

The potential success of any given business enterprise is contingent upon its organizational performance, which entails the ability to efficiently and effectively execute strategies that are linked to realization of institutional objectives (Randeree & Al Youha, 2009). In essence, firm performance can be considered as the actual output as measured against the corresponding intended outputs (Tomal & Jones, 2015). Similarly, performance is viewed as the degree to which a company, as a social system endowed with a bundle of tangible resources, intangible resources and capabilities, is able to actualize both the short term and long-term objectives. Javier (2002) posited that firm performance is more or less equivalent to economy, efficiency and effectiveness of execution of intended social activities.