Strategic Alliances and Organizational Competitiveness Among Commercial Banks in Kenya: a Case Study of Kenya Commercial Bank

Abstract

Strategic alliances provide opportunities for participating firms to tap into the resources, knowledge, capabilities and skills of their partners. They offer potential for a firm to leverage its resource capabilities and gain sustainable competitive advantage over its competitors. The objectives of this study were to identify the types of strategic alliances that best enhance competitiveness of a firm and whether such alliances actually created competitiveness among commercial banks in Kenya. The study used descriptive case study design where a convenient sample was used to create a sample frame where 33 respondents were considered. The study used structured and semi-structured questionnaires to collect data which was analysed using MS Excel Spreadsheet and relationship among variables established using correlation analysis. The study found that strategic alliances seek to create competitive advantage through collaboration rather than competition. Strategic alliances are also based on mutual trust of partners. The study also established that strategic alliances provide partners with an opportunity to tap into resources, knowledge, capabilities and skills of their partners to gain competitiveness. Finally, the study found that strategic alliances especially non-equity strategic alliances are positive and significantly correlated with organizational competitiveness. The study therefore concluded that strategic alliances create interdependence between the partner firms which bring benefits in the form of intangible assets and capabilities. These assets (superior skills) and capabilities (superior resources) are the main sources of competitive advantage for a firm.