The Influence of Alliance Management on the Competitiveness of Real Estate Firms in Nairobi

Abstract

In a world where no advantages seem to be sustainable for long, prowess in managing alliances has become one of the main sources of competitive advantage that firms can develop. By aligning their operations with other partner firms, firms create synergy in operations, increasing their level of competitiveness. The objective of the study was to determine the influence of alliance management on the competitiveness of Real Estate firms in Nairobi. Data was collected from real estate firms in Nairobi that have formed strategic alliances with other firms. Descriptive statistics was used to analyze the data collected while regression analysis was used to assess the influence of alliance management on the competitiveness of Real Estate firms in Nairobi, Kenya. The main research findings were that to reap the benefits of strategic alliances, firms must effectively manage their relationships with strategic partners. To achieve this they must take into account complementary needs and skills, facilitate exchange of relevant knowledge and ensure there is information transparency and clarity in decision making. Trust among the partners, development of key success factors that will guide assessment of alliances performance, openly sharing of relevant knowledge and continuous systematic relationship building were other key aspects found to enhance alliance management capability. The main conclusion drawn from this study was that alliance management moderately enhanced competiveness of real estate firms. By effectively managing alliances the firms were able to reduce costs through economies of scale, enhance learning & growth, enter into new markets and develop appropriate competences This enabled the firms improve the quality of products and services to its customers , enhance brand reputation which creates loyalty, increased sales and growth of market share. The study recommended that firms should engage in alliances that enhance their capacity to adapt to changing environment and are in line with internal capabilities. They should negotiate formation of alliances as part of the firm’s overall portfolio of alliances and in the context of the firm’s alliance management capability.