Globalization and strategic alliances among Commercial Banks in Kenya
The main purpose of the study was to determine the globalization and strategic alliances among commercial banks in Kenya. The research addressed the extent of strategic alliances among commercial banks and how globalisation is influencing strategic alliances among commercial banks in Kenya. The study adopted a census survey. The target population of study consisted of the managers of the 43 (Forty three) registered commercial banks in Kenya by Central Bank of Kenya. The population of interest consisted of bank management staff. The study used both secondary data from other sources and primary data collected using questionnaires. The questionnaires consisted of structured and unstructured questions. Data that was obtained from the field was organized, cleaned, coded, and analyzed using descriptive statistics. Statistical Package for Social Science was used to analyse the data. Processed data was presented using tables, charts and graphs to make them reader friendly. The study established that commercial banks in Kenya had adopted globalization and strategic alliances. The findings indicate that Commercial Banks in Kenya endeavour to achieve some competitive advantage over their competitors in such a global environment by using different strategies such as joint venture; equity strategic alliance; licensing agreement; outsourcing agreement; distribution agreement and supply contract. It was concluded that Commercial Banks formed strategic alliances/mergers/joint venture/acquisition, developed new product, diversified, employed innovative managers and institutionalized innovative culture among employees production of superior products and services were strategies used by Commercial Banks to maintain quality customer services. Review of the vision and mission of the firm, competitor analysis surveys, benchmarks with global companies, environmental scanning were strategies applied to manage service quality among customers by Commercial Banks in Kenya. The study concluded that lack of trustworthiness resulted in lack of openness, lack of integrity practices, inconsistencies in executing responsibilities and lack of understanding on responsibility, equality issues and reliability affected the relationship between the firms affected strategic alliances in the bank. Effective globalization requires an awareness of technologies and how they are adapted around the world. Firms may use alliances to obtain resources possessed by other firms that are valuable and essential to achieving competitive advantage. The study made recommendations based on the study findings that the bank should form strategic alliance driven by the need to differentiate its products and services within one or a number of target market segments. Use of strategic partnerships geared towards differentiated strategy will help the bank to gain more competitive advantage compared to its competitors in terms of market capture. Commercial banks should pay more attention to its resources than to its competitive environment.