An investigation into factors considered by firms when entering into strategic alliances a case study of the Kenya institute of Management

Abstract

The purpose of this study was to investigate the factors that companies consider when entering into strategic alliances, the case study of The Kenya Institute of Management, KIM. Of particular interest was the reasons why formed strategic alliances and the factors that led to success of such alliances. The study targeted the directors and managers of the Kenya Institute of Management. These included four directors and six chief managers directly involved in the contract negation as well as 15 managers directly responsible for the implementation and management of strategic alliance products and therefore had direct access to information on the general operation of such alliances. Questionnaires were used to collect data while SPSS was used to analyze data into percentages and means. The analyzed data was presented using tables. The main findings of the study were that KIM entered into strategic alliances mainly to gain access to new markets and to enhance its financial stability. On the other hand the the main factors attributed to the success of alliances in KIM were clear communication with strategic partners and a culture of thorough partner evaluation before forming any strategic alliances. The study also established that lack of coordination between management of teams of the strategic partners and a lack of commitment by the partners were the leading factors why previous alliances in KIM failed