Influence of Strategic Alliances On Service Delivery Performance in Petroleum Firms in Nairobi County, Kenya

Abstract

Petroleum firms in Kenya face increasing pressure to remain competitive, deliver quality services, and adapt to challenges such as fluctuating oil prices, regulatory constraints, and limited technological capacity. Many firms form strategic alliances to boost capacity, share resources, and improve service delivery. However, despite such partnerships, inefficiencies and limited competitive advantage persist, raising questions about their actual effectiveness. This study examined the influence of strategic alliances on service delivery performance among petroleum firms in Nairobi County, Kenya. The specific objectives were to assess the role of strategic leadership, market share expansion, resource and capability sharing, and competitive strategy. A quantitative research design was adopted, with data collected from managers of 125 petroleum service stations using semi-structured questionnaires. Ethical standards were upheld throughout the research process. Findings revealed that all four constructs of strategic alliances showed a moderate and significant relationship with service delivery performance. Further analysis demonstrated that while each construct had some level of influence, the combined effect was uneven. Competitive strategy emerged as the most impactful factor, underscoring the importance of innovation, technological adaptation, and customer-focused practices in improving service outcomes. Market share expansion demonstrated limited significance, while strategic leadership and resource sharing showed no notable effect on service delivery performance. The study concluded that strategic alliances moderately contribute to service delivery performance, but their effectiveness varies across different dimensions. It recommends that petroleum firms prioritize competitive strategy within alliances by investing in service innovation, digital platforms, and differentiated offerings. Leadership and resource-sharing initiatives should be realigned toward measurable service outcomes. Practical insights are also offered to policymakers and industry stakeholders seeking to strengthen the role of alliances in improving service delivery. Future research should consider additional organizational, technological, and environmental factors, and extend the study to other Counties for broader generalizability.