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.