Porter's Generic Strategies and Firm Performance: A Study on the Insurance Industry in Ghana

Abstract

This study aimed to investigate the effects of implementing generic strategies on firm performance among insurance companies in Ghana. The primary purpose of this research was to determine how insurance businesses in Ghana fared after adopting generic strategies. The study employed a descriptive survey research method, sampling 250 top-level management members of insurance companies responsible for strategy implementation. A questionnaire collected information about the firms, and SPSS 23 for Windows conducted the analysis. The SPSS 23.0 program facilitated the identification of demographic characteristics, the descriptive characteristics of scale items, reliability analysis, normality tests, and regression analysis. The results show that Porter’s generic strategies positively affect firm performance. Focus strategy had the greatest impact on firm performance, while cost leadership strategy had no significant correlation with firm performance. The study concluded that generic strategies positively impact firm performance, recommending firms to carefully analyze the competitive environment before selecting a strategy for competitive advantage.

Keywords: Generic strategies, firm performance, competitive advantage, Ghana insurance industry

DOI: 10.7176/EJBM/17-1-06

Publication date: January 30th 2025