Strategic Alliances, Organizational Characteristics, Competitive Advantage and Performance of Selected Enterprises in Kenya

Abstract

Researchers and practitioners in strategic management are increasingly trying to figure out why some businesses perform better than others even when they are in the same or similar business conditions. With the ever changing business environment strategic alliances are seen as the best strategies to enhance organizations innovative capabilities as a means to stay current in their field and enhance performance. The objective of this study was to determine the effect of organizational characteristics and competitive strategies on the relationship between strategic alliances and performance of selected enterprises in Kenya. The relevant theories reviewed for this study are network theory, Resource Dependency Theory, Resource Based View theory and Market Based View Theory. The study applied positivism research philosophy and descriptive cross-sectional design with target population constituted of the executives of the 40 selected enterprises in Kenya. With the aid of semistructured questionnaires, primary data was gathered. Both descriptive and inferential statistics were used to analyze the data. Based on the goals of the study, the hypotheses were created and evaluated. The findings of the study showed that strategic alliance significantly influence enterprise performance. In addition, the study observed that organizational characteristics significantly moderate the relationship between strategic alliance and enterprise performance. The findings of the study also showed that competitive advantage mediates the relationship between strategic alliance and enterprise performance. Finally, the study observed that jointly, strategic alliances, organizational characteristics and competitive advantage have a significant influence on enterprise performance. The results contribute to policymakers as the insights gained aid them in improving their policymaking abilities, as well as using invention in strategy employment in zones of aptitude creation, alliance building by selected companies, and the overall benefits accrued by companies in alliances. The study recommends that managers must take cognizance of the fact that their main duty revolves around isolating the exact needs of customers and deciding on the best strategies including entering in to alliances in order to build stronger competitive advantage for their desired performance outcome to be realized. Thus, suitable and effectively implemented strategic alliances are necessary to effectively guide the placement of existing resources in pursuit of desired enterprise goals. The study further suggests that running a successful business is not merely about having a high quality product or picking a suitable strategic alliance. It is also about leveraging the right kind of strategies to reach out to the target audience and convert them into enterprise profits. Thus, policymakers and practitioners operating in the selected enterprises should take advantage of the findings of this research and benefit from the implementation of the right kind of strategies like strategic alliance together with putting in place the right organizational characteristics and competitive advantage to maximize on their performance.