Exploring Environment-Strategy-Performance (E-S-P) Paradigm in General Insurance Companies in Indonesia

Abstract

Understanding dan managing the impact of business environment uncertainty and business strategy are critical for organization performance. This research aimed to present a model that generally illustrates the influence of environment uncertainty and prospector strategy toward the organizational performance of general insurance companies in Indonesia. Analytical technique tested with Structural Equation Model (SEM). This study processed data from 238 managers from 21 general insurance companies in Indonesia.

This research found that environmental uncertainty had significant effect on the prospector strategy. The prospector strategy also has a positive effect on company performance. Furthermore, this study also shows that environmental uncertainty directly has a significant positive effect on organizational performance.