Factors That Influence Success of Strategic Alliances Between Mobile Service Providers and Commercial Banks in the Money Transfer Services
Strategic alliance is an important aspect in the banking industry. In order for commercial banks to be successful, there is need for strategic alliances and co-operation with each other, as well as with other service providers. The broad objective of the study was to establish the factors that influence success of strategic alliances between Mobile Service Providers and commercial banks in money transfer services in Kenya. The research design adopted was descriptive survey. The sample population for the research was three telecommunication companies and twelve commercial banks that have entered into alliance with telecommunication companies. Primary data was collected using a semi-structured questionnaire. The study used descriptive statistics such as mean scores, standard deviation and frequency distributions. Content analysis was used to analyze data that was collected using open ended questions. The study established that top management commitment influence success of strategic alliances to a large extent. These include shared goals and objectives, organization culture, commitment of the partner organizations and proper implementation and monitoring of policies which enhance strategic alliance. It concluded that for success of strategic alliance, both partners must ensure mutual trust, development of measurable goals, and also, the existence of shared risks and outcomes. From the results, the study recommends that strategic alliance organizations should foster top management commitment to achieve success. In addition, there should be complementary strength of partner organizations, involvement of senior management in strategic operations, ensuring clear and common vision to avoid conflict in shared objectives and finally, practicing of transparency and accountability among partners.
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