Role of Strategic Partnership in Value Creation Between Development Agencies and Businesses: a Case Study of Usaid Kenya

Abstract

industry in order to gain access to resources needed. In seeking to establish this relationship, they should actively look for opportunities to exploit their strategic abilities, adapt and seek improvements in every area of the business and at the same time build on awareness and understanding of current strategies and successes. Consequently, collaborative relationships between business and non-governmental organizations (NGOs) have become an important strategy that is implemented to achieve organizational success. The objective of the study was to determine role of strategic partnership in value creation between USAID Kenya and businesses. The study adopted a case study research design. The study used primary data which were collected using an interview guide and analyzed using content analysis. The study findings were that USAID Kenya has entered into strategic partnership with businesses, micro finance institutions and Saccos. This relationship will involve USAID Kenya providing technical assistance such training, design and develop products; operational manuals to ensure efficiency in carrying out operations and development of financial models that help businesses achieve economic development and growth. The main motivations for USAID Kenya partnering with business was found to be intended in helping the organization accomplish their objectives and mandate through businesses since the unit are familiar with the needs at the grassroots levels therefore making it easier for USAID Kenya to penetrate such areas through partnership. In order to ensure achievement of the objectives, the partnership requires mutual trust, communication and cooperation. The other key ingredients for the partnership to succeed were the need for information sharing, joint cost management, flexibility and adaptability and allocation of adequate resources. The study concluded that implementation of value creating methods leads to achievement of sustainable competitive advantage for the partners and realization of their respective objectives due to the resultant synergistic effects. Because of the benefits found to result from the partnership between USAID and the business units, it is recommended that other NGOs engaged in different fields consider exploring the same strategy due to its beneficial effects.