Effects of Strategic Partnership on Financial Performance of Mortgage Companies in Kenya
Abstract
The challenges of managing businesses in the 21st century require dynamic strategies for
businesses to remain competitive and to sustainably generate returns for shareholders. The
global environment, within which mortgage companies compete, is increasingly more
competitive. Strategic partnership as a strategy for competitive advantage has become
monumental as organizations scramble for survival to reduce costs and be stronger in order to
compete. The mortgage sector like most other industries operates in turbulent conditions in
the market place. Studies in this field provide insights of what capabilities mortgage
companies require to develop and what resources they can leverage on to navigate the tidal
times of changing technology and client expectations. Review addressed the existing research
gap by showing how these partnerships affect the performance of mortgage companies. The
study adopted a descriptive cross-sectional survey. The target population of this study
comprised of three mortgage companies in Kenya Housing Finance Company, National
Housing Corporation and S&L. The questionnaires were administered to every respondent.
Inferential analysis sought to establish influence of strategic alliance on performance of the
mortgage industry in Kenya through the use of multivariate analysis. Results of quantitative
data analysis were presented using charts and tables. The study discovered positive
correlation between decision sharing and the financial performance of mortgage companies
in Kenya. The study established that there is a positive relationship between resource sharing
and financial performance of mortgage companies in Kenya. The study discovered positive
relationship between risk sharing and the financial performance of mortgage companies.
Thus the study established joint research and development is positively related to financial
performance of mortgage companies in Kenya. The study recommends that the management
of the mortgage companies should adopt a mode of decision sharing among the employees
and develop effective communication channels to involve the employees on the process of
decision making. The study recommends that the management of the mortgages companies
should set out clear guidelines governing the sharing of the resources to ensure that resources
are shared appropriately among the concerned departments. The study recommends that the
management of the mortgage companies should be keen on identifying risks that face the
company and insure the company against adverse risk that may negatively influence its
operations. The study recommends that the management of the mortgage companies should
conduct joint research and development on a regular basis for the benefit of the company to
ensure it operates appropriately on the changing environment it is in.
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
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