Effects of Strategic Alliances on Organizational Performance: Supermarkets and Their Alliances in Kenya

Abstract

This study sought to examine the effect of strategic alliances on performances. .The objectives of the study were: to establish the effects of technological, production and marketing strategic alliances on the performance of supermarkets and their alliances in Kenya. The study employed a correlational research design. The sample of the study entailed a study of all the five big supermarkets (Nakumatt, Ukwala, Naivas, Tuskys and Uchumi) and 95 of their strategic alliances. Data for this study was collected from the head offices of the firms by use of a questionnaire. The data was analyzed using a multiple regression model in order to test the effect of the independent variables relating to strategic alliances and the dependent variable performance. Independent one-way ANOVA test and independent t-test (one tailed) were used to determine the level of significance. Data was presented using figures, and tables. The empirical results of the study indicated that there was a strong, negative correlation between technological strategic alliances and performance. However, there was no statistical significant relationship between technological strategic alliances and performances among supermarkets and their alliances in Nairobi CBD. Correlation results indicated that there was a weak, negative effect between production strategic alliances and performance, for the supermarkets while for supermarket alliances there was a large, positive effect between the two variables. There was a strong, positive effect between marketing strategic alliances and performance for the supermarkets while for supermarket alliances there was a medium, positive correlation between marketing strategic alliances and performance. However, 2 tailed tests indicated that there was a statistically insignificant relationship between the variables. The results from the multiple regression analysis indicated that strategic alliances had a strong relationship with supermarket performance which suggests that strategic alliance contributes positively towards supermarkets performance. On the other hand supermarket alliances regression analysis showed a weak relationship between strategic alliances and performance suggesting that other factors account for the performance in these alliances. The ANOVA test indicated that the relationship between strategic alliances and performance was not statistically significant for the supermarket alliances but significant for the supermarkets. The t- test analysis indicates that the relationship between strategic alliances and performance was statistically significant among the supermarkets and their alliances suggesting that strategic alliances positively increase performance.

Keywords: strategic alliances, supermarkets, supermarket alliances, performance