Market Factors, Training Programs, Strategic Management and Performance: An Empirical Study of the Iranian Insurance Companies

Market Factors, Training Programs, Strategic Management and Performance: An Empirical Study of the Iranian Insurance Companies

Mahmoud Zamani (School of Management, Tehran University, Tehran, Iran), Changiz Valmohammadi (South Tehran Branch, Islamic Azad University, Tehran, Iran) and Mona Moshiri (South Tehran Branch, Islamic Azad University, Tehran, Iran)
DOI: 10.4018/ijsita.2014100101

Abstract

The main purpose of this study is to carry out an empirical research to investigate the relationship between market factors (competitive intensity and industry attractiveness), training programs development, strategic management and organizational performance of insurance companies in Iran. nda clarify the importance role of market forces as an essential factor influencing training programs development, strategic management and organizational performance in insurance companies in the context of Iran. This research is based on an empirical survey of marketing and sales experts in four private insurance companies, namely Saman, Parsian, Karafarin and Pasargad in capital city of Iran, Tehran. Questionnaire is the main data collection instrument for this research. Exploratory and confirmatory factor analyses as well as structure equation modeling were employed for data analysis. Statistical analyses revealed that competitive intensity, industry attractiveness, training programs development and strategic management have a positive and significant relationship with the organizational performance of the surveyed companies.
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2. Theoretical Development And Hypotheses

2.1. Environmental Factors: Strategic Management

Initially, the concept of strategy was meant to refer to the leading role of a general in command of an army as well as for military purpose. Modern organizations have mainly adopted and modified the principles of the military strategies to suit the specific business environment. There appears to be much agreement in the strategies management literature on the important role of strategy in organizations (Valmohammadi, 2010).Market forces are effective in strategy development, its implementation and organizational performance. Regarding the effects of industry attractiveness and organizational strategic performance, evidence shows a rational relationship between them. Grewal & Tansuhaj (2001) emphasize that industry attractiveness is effective in organizational strategic performance, since forces organizations to analyze their environments more efficiently. Thus they can develop desired organizational strategies more properly. On the other hand, researchers believe that industry attractiveness has an indirect effect on organizational performance through strategic management. Therefore we can say that industry attractiveness has direct and indirect effects on performance. Nevertheless, some studies, e.g. Tsai, 2002, indicate that organizations affected by environmental factors, do not change strategic planning and the tendency to its development.

Therefore, the first and second hypothesis is posited as follows:

  • H1: There is a significant relationship between the competitive intensity and strategic management;

  • H2: There is a significant relationship between the industry attractiveness and strategic management.

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