Influence Of Strategic Alliances On Performance Of Kenya Women Microfinance Bank Limited
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Date
2019Author
Muchangi, Madrine Wambui
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
Strategic alliances are an important element for the success of any business in the 21st
century, which is characterized by a highly competitive environment. It has been
projected that the rate of failure of the strategic partnerships could be 70% high,
probably due to the fact that they did not satisfy the objectives of their holding firms
nor delivered on strategic and operational benefits which they desired to produce. The
rates of terminating an alliance have been reported as above 50 per cent. In many
instances like termination of such relations has led to destruction of the value of
shareholders for firms participating in those alliances. Although many studies have
been done on strategic alliances in financial sector few have narrowed down to a
microfinance institution. This study therefore sought to fill this research gap by
establishing the influence of strategic alliance on performance of Kenya Women
Micro Finance Bank Limited. The study was guided by Resource Based Theory,
Capability Based View, Resource Dependency Theory and Strategic Alliance
Dynamism Model. A case study design that entailed detailed investigation of
individuals from the organization was adopted by use of interview guide. The study
targeted seven senior managers in the following departments: Finance, Insurance,
Information Technology, Legal & Regulatory, Product Development, Credit and
Digital Lending. The researcher personally conducted the interviews. Content analysis
was applied for analyzing the data. This study concluded that strategic alliances at
KWFT are driven by competition, value adding, technology, profitability, joint sales
and improved distribution channels. The study concluded Kenya Women
MicroFinance Bank Limited used key performance indicators (KPIs) such as loan
portfolio growth, profitability, market share and clientele growth. The study revealed
that KWFT has continued to register positive growth which can be related to effective
and efficient strategic alliances. The study therefore recommended that the structure
of the alliance between KWFT and its partners need to be defined in a way that
enables mutual balance between competition and co-operation. Senior management
should be involved in strategic operations while ensuring clear and common vision to
avoid conflict of interest. There should also be clear guidelines which govern the
alliance in order to ensure transparency while promoting mutual trust.
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
- School of Business [1311]
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