| dc.description.abstract | Strategic alliances are a common scenario in businesses and organizations. This is
attributable to the rising number of business collaborations anchored not only on ownership
but also on affiliations which have eventually caused enormous changes to the business
culture and running of organizations in the modern world. Strategic alliances are aimed at
enhancing productivity and profitability of the collaborating entities and thereby improving
the organizational performance of the individual firms. In Kenya’s telecommunication
industry, three of the four main operators have not matched the performance of the industry
leader, Safaricom, through the years. This has partly been associated with the level of
involvement in strategic alliances. Safaricom has had several strategic alliances with
various partners such as: M-Tiba, Afya Moja and Daktari Smart (health); Shupavu 291 and
Zeraki learning (education); Digifarm (agriculture); United Nations Global Compact
(corporate sustainability practices); Acumen (leadership development); and Shared Value
Africa Initiative (competitive collaboration in Africa) among others. This research sought
to establish how strategic alliances influence performance of telecommunication
organizations in Kenya, particularly at Safaricom PLC. Specifically, the research sought
to; determine the influence of marketing alliances on performance of telecommunication
organizations in Kenya; establish the influence of production alliances on performance of
telecommunication organizations in Kenya; and to examine the influence of technology
alliances on performance of telecommunication organizations in Kenya. A descriptive
research design, case study method, was employed. Safaricom PLC as well as other firms
that the company had formed an alliance agreement with constituted the target population.
It comprised those in top and departmental management positions. Stratified random
sampling was used with the stratification criteria being on the basis of management level
in the organization. Selection of the final sample of 105 respondents was done via simple
random sampling. Primary and secondary data were used. Primary data was sourced
through survey using questionnaires. Data analysis comprised both descriptive and
inferential techniques. Descriptive analysis involved generating measures such as mean,
mode, frequencies, range, standard deviation and percentages. Inferential analysis was
conducted using multivariate regression analysis and correlation analysis. Results from the
analysis of data were relayed through tables, graphs and charts. Results indicated that the
main reason for engaging in strategic alliances was for the purpose of maintaining and
increasing marketing. Regression analysis results conveyed statistically significant and
direct influence on organizational performance occasioned by marketing and technology
alliances. Production alliances showed an inverse and insignificant influence on
organizational performance. However, correlation analysis showed strong, positive and
significant influence organizational performance due to marketing, production and
technology alliances. It was recommended that, rather than having a broad based approach,
telecommunication firms should have a more narrow based approach that targets a specific
component in strategic alliances and build a competitive advantage upon it so as to
eventually attract the right partner(s) to form a business alliance. | en_US |
