Alliance Motives among Manufacturing SMES: Evidence from an Emerging Economy
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Date
2022
Authors
Muthoka, Richard K.
Kilika, James M.
Muathe, Stephen M. A.
Journal Title
Journal ISSN
Volume Title
Publisher
ESJ
Abstract
This study was designed to investigate the effect of environmentalbased motives on firm performance. The study targeted manufacturing Small
and Medium Enterprises based in Kenya whose performance has been
negatively affected by high industry competition, low technology uptake, and
industry regulation. The study was geared towards establishing the
environmental-based motives pushing and pulling manufacturing Small and
Medium Enterprises toward strategic alliance formation. To this end, the study
was set to investigate whether compliance with government regulation, the
need to grow market share, and the need to increase customer base motivates
manufacturing Small and Medium Enterprises in Kenya to form strategic
alliances. The target population for the study consisted of 74 SMEs and the
study adopted descriptive and explanatory research designs and collected data
from company CEOs or senior managers. Descriptive and inferential statistics
were used to analyze the survey data. The study findings indicated that
environmental-based motives have a positive and significant effect on the
performance of manufacturing Small and Medium Enterprises in Kenya (Adj
R
2 = 0.484). Based on these findings, the study concluded that environmentalbased motives of compliance with the government regulation, market share,
and customer base motivate manufacturing Small and Medium Enterprises to
form strategic alliances and that these motives have a positive and significanteffect on firm performance. The study contributed to the general body of
knowledge by bridging the contextual and empirical gaps identified after the
literature review. The study recommends that top management teams in the
manufacturing industry should map environmental-based motives and align
such motives to specific aspects of their value chain activities.
Description
Article
Keywords
Strategic Alliances, Firm Performance, Manufacturing Sector, Small and Medium Enterprises, Emerging Economy
Citation
Muthoka, R. K., Kilika, J. M., & Muathe, S. M. (2022). Alliance Motives among Manufacturing SMES: Evidence from an Emerging Economy. European Scientific Journal, 18(22), 180.