Strategic Alliances and Performance of Commercial Banks

Abstract

Local and international cooperation has in the recent past gained significance to most of the organizations. Fostering strategic affiliations becomes fundamental for organizations aspiring to expand their interdependence with established organizations. Recently, forming strategic alliances has become a key objective for numerous firms and in general, these firms seem to lean towards such a direction and as a result, ought to be included in the current conversation where the corporate future is determined by such alliances. The research aimed to establish the strategic alliances and performance of commercial banks in Mombasa County, Kenya with the specific objectives determining the effects of marketing alliances, technological alliances and service innovation alliances on performance of the same. The theories underpinning the study by the Resource Dependence Theory, Agency and Dynamic Theories. Descriptive research was adopted targeting a population of 1170 employees working for the banks within Mombasa county, Kenya. The sample size was determined using Random sampling where a population sample of 93 employees were sampled. Questionnaires was used for data collection and analysis done by descriptive statistics, regression analysis and presented using graphs and tables. Conclusions were derived from the study that marketing, technological and service innovation alliances all impacted performance of commercial banks. Therefore, recommendations were meant to have banks adopt and enhance on the strategic alliances which would in turn improve the performance in terms of profitability, customer satisfaction and gain of market share. Further studies were recommended to be done for other counties and Kenya at large in the future.