Factors Considered by Commercial Banks in Kenya When Forming Strategic Alliances
Abstract
This study was conducted to investigate the factors that influence the formation of
strategic alliances by commercial banks in Kenya. The objectives of the study were to
determine the type of strategic alliances beneficial to the commercial banks and to
evaluate the importance of strategic alliances by commercial banks in Kenya. This study
helped to strengthen the banking industry by providing information on what makes
companies develop positive perceptions to alliances. The study is also important to the
government in the determination and establishment of a regulatory framework for the
banking industry in Kenya. The study is useful to the government in policymaking
regarding alliances. The research design used in this study was a descriptive survey. The
population of the study comprised of all 47 commercial banks in Kenya. The study
collected both primary and secondary data. A semi-structured questionnaire comprising
both open-ended and close-ended questions were be used to collect data. The
questionnaires will be administered using the drop and pick later method Qualitative data
was coded and organized into themes and used description of behavior and context in
which it occurs. Quantitative data used percentage (%) means and frequencies.
Qualitative data was partly used to generate quantitative data. Both were finally
integrated to form the report. The study findings indicated that lack of strategic fit,
commitment and cultural differences respectively as very important factors leading to
strategic alliance failure. From the findings of this study, prospects for growth both in
market share and productivity is a key factor banks consider when entering strategic
alliance. Trust is a cornerstone of strategic alliance success and choosing the wrong
partner is a precursor for failure. Strategic alliances have become the centre piece for
competitive edge. There is indication that strategic alliances are increasing in size and
further literature show that there is an inclination towards entering new markets in
strategic alliances. Thus there is need to earnest the cooperative elements of strategic
alliances as these networks evolve into networks of technical, financial and social
interactions. Sustainability of these corporations is good for the economy as a whole.
Citation
A Management Research Project Proposal Submitted in Partial Fulfillment of the Requirements for the Award of the Degree of Master of Business Administration, School of Business, University of Nairobi 2013Publisher
University of Nairobi School of Business