Effect Of Strategic Alliances On Competitive Advantage Among Mobile Network Operators In Kenya

Abstract

The key purpose of this study was to determine the effect of strategic alliances on competitive advantage among mobile network operators in Kenya. Primary data was collected from principal respondents who were the head of strategy, marketing manager and business development manager. Data analysis was done using multiple regression analysis. The study revealed that technology sharing influences competitive advantage. Cost of technological infrastructure makes it hard for companies to thrive alone. Technological advancement necessitated mobile banking, global technological advancement has opened up diversity in market. The study found that enhanced customer service positively influences competitive advantage. It was found out that knowledge expertise influences competitive advantage. Forming a strategic alliance can give prepared access to knowledge and skill in an area that an organization needs. Cost sharing influences competitive advantage in strategic alliances. Acquisition of new technology influences cost leadership of the firm thereby reducing its marketing expenditure. Sharing activities provide cost savings and revenue enhancements. The study recommends that the telecommunication firms should enhance technology sharing since it was found to influence competitive advantage. This is because it was found out that cost of technological infrastructure makes it hard for companies to thrive alone. The study recommends that there should be enhanced customer service since it was found to be positively influencing competitive advantage. It was found that strategic alliances have enhanced service delivery to the customers. The firms should encourage knowledge expertise since it influences competitive advantage. The study recommends cost sharing as this can lead to cost reductions for the cooperating partners. The firms will be able to reduce the installation costs in adopting a technology through strategic alliances. The firm staffs should be trained and conversant with the system lowering the cost of training on the partners.