The Role of Inter-organizational Strategic Alliance as a Source of Competitiveness Among the Major Seed Companies in Kenya

Abstract

Inter-firm alliances have become necessary in current globalized economy. Firms use collaborations to supplement and complement their internal activities and to create a link with the external environment. The effective management of inter-organizational resources has therefore become an integral part of competitive advantage and critical to the success of the business firm. The objective of the study was to determine the role of inter-organizational strategic alliance as a source of competitiveness among the major seed companies in Kenya. The study used cross sectional descriptive survey design. The population of the study comprised of forty three major seed companies operating in Kenya. The study used primary data that were collected through self-administered questionnaires. The data was analyzed by the use of descriptive statistics. The regression analysis was used to assess the relationship between strategic alliance and competitiveness. The findings of the study was that the seed companies by entering into strategic alliances the seed companies were able to maximizes its profit, reduce uncertainties of company internal structures and external environments, manage and minimize cost/risks, protect and enlarge market share and achievement of competitive advantages. The study further established that inter-organizational strategic alliance adoption was effective as it has resulted in expanded market, enhanced company relationship with customers, risk minimization, improved company‟s ability to meet strategic objectives and acquisition of specific competencies. The competitive advantage achieved by the seed companies as a result of Inter-firm networks strategic alliances was improved level of technological advancement, business diversification, improved innovation process, superior service delivery to customers and improve quality of products and services.