Role of Strategic Alliance on Competitive Advantage of Real Estate Companies in Mombasa County
Abstract
Strategic partnership entails companies with a given degree of equal distribution of
resources as well as information and the ability to develop together or share services or
products. The realization of competitive edge is not achieved by only one specific company
as it doesn’t have all the fundamental assets and skills to become entrepreneurial as well
as creative in the economic markets which are very competitive and dynamic. Pricing
pressure gaps in asset concentrations, product mix and increased competition has forced
most entities across the world to consider forming strategic alliances as they bring on board
cost and product differentiation synergies. The study’s objective was therefore to examine
the role of strategic alliance on competitive advantage on real estate companies in
Mombasa County. This study was anchored on the transaction theory, resource-based view
theory and knowledge-based view theory. The study adopted a descriptive research design
and the population was made of 81companies registered with Estate Agents Registration
Board and also which had advanced in technology and had a website or be listed in major
real estate websites in Mombasa County. The study using purposive sampling technique
selected a sample of 67 real estate companies and using questionnaires to collect data from
only the managers of the selected real estate firms. The data collected through the
questionnaires was analyzed through descriptive statistics presented in tables. The study
found that that real estate firms in Mombasa County used strategic alliances at a moderate
extent and that strategic alliance affects competitive advantage of real estate firms in
Mombasa County at a moderate extent respectively. The results also show that product
differentiation was a moderate source of competitive advantage and that cost leadership
was a great source of competitive advantage of real estate firms in Mombasa County
respectively. The findings of the study will also benefit firms in other industries since they
get to appreciate the role played by strategic alliance as a way of achieving competitive
edge. This would boost the performance of the real estate companies in Mombasa County
and this increases their competitive advantage. Future researchers will find the study’s
findings as an important source for reference. These results can be compared with other
sectors to determine the various ways institutions can react to competitive forces in their
respective environments. Scholars can also use this study as a base on which the other
similar research studies can be built upon. The study also focused on strategic alliance and
competitive advantage, which was assessed through product differentiation and cost
leadership. The study therefore recommends an additional research on effects of strategic
alliances on other firm metrics like financial performance, strategy formulation, strategy
implementation and organizational culture. The study also collected data from one
respondent from the real estate companies. The study therefore did not obtain the views of
other employees. The study recommends a similar study but which will cover all the
employees of the real estate companies.
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 [1411]
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