| dc.description.abstract | The concept of strategic alliances has received a lot of attention from scholars for a very
long time now. Despite numerous studies in this area, interest has not faded away. To this
end, the objectives of this study were to identify the determinants of strategic alliances to
better understand what drives airlines into such alliances and to identify factors that affect
the performance of the alliances. The research was done through descriptive survey
design, which involved all airlines with scheduled flights in and out of Kenya totaling
thirty six (36). The target population was CEOs or Senior managers within the airlines,
which had response rate of 72%. Key findings of the study showed that market entry and
market position-related motives, resource use efficiency-related motives and uncertainties
and formulation of technical standards and access of new technologies are major
determinants of strategic alliances. In addition, organization strategy, management of the
alliances and organizational environment are key factors that influence the performance
of alliances. This pointed to the current and future importance of strategic alliances in the
airline industry since the era cut throat competition is slowly coming to an end. This
validated the underlying principles enshrined in the strategic alliances theories in the
study namely transaction cost, resources dependency, organizational learning,
relationship marketing and strategic behavior theories. A key recommendation proposed
by this study is that airlines should identify their needs to ensure that as they enter into
alliances they can build on their weaknesses. The crafting of the strategy, the
involvement of management, and organizational environment cannot be over emphasized
if the alliance is to succeed. This study recommends an expanded study in regard with
intermodal alliances, vertical alliances within the airline industry. | en |
