Strategic Alliance among Small and Medium Enterprises: Firm Based Motives in the Manufacturing Sector in Kenya
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Date
2021
Authors
Muthoka, Richard
Kilika, James
Muathe, Stephen
Journal Title
Journal ISSN
Volume Title
Publisher
IJECM
Abstract
Besides the challenges posed by globalization, the SMEs operating in Kenya are exposed to
peculiar challenges of high cost of production systems and weak institutional linkages in the
production chain, low-quality products, high cost of credit, insufficient demand, corruption and stiff
competition from an influx of counterfeits goods. As a result, SMEs in Kenya have embraced
strategic alliances to overcome such challenges to improve their poor performance. The study was
designed to investigate the motives that motivate SMEs in Kenya to form strategic alliances. To this
end, the study’s overall objective was to investigate the effect of firm-based motives on firm
performance and targeted manufacturing SMEs in Kenya. The target population consisted of 74
SMEs with existing strategic alliances and was based in Nairobi City County. The study adopted
descriptive and explanatory research designs and analyzed the data using descriptive and
inferential statistics. The survey findings showed that firm-based motives have a positive and
significant effect on the performance of manufacturing SMEs in Kenya. Based on this findings, thestudy concluded that diverse firm-based motives motivate manufacturing SMEs to form a strategic
alliance and that these motives have a positive and significant effect on SME 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 need to map firm-based motives and align such motives to specific aspects
of their value chain activities to facilitate the identification of suitable alliance partners, access to the
requisite resources to improve SME performance.
Description
Article
Keywords
Strategic Alliances, Firm Based Motives, Small and Medium Enterprises, Firm Performance
Citation
Muthoka, R., Kilika, J., & Muathe, S. (2021). Strategic Alliance Among Small and Medium Enterprises: Firm Based Motive in the Manufacturing Sector in Kenya. International Journal of Economic, Commerce and Management, 9(11), 334-359.
URI
https://www.researchgate.net/profile/Richard-Muthoka/publication/361208228_International_Journal_of_Economics_Commerce_and_Management_United_Kingdom_Licensed_under_Creative_Common_STRATEGIC_ALLIANCE_AMONG_SMALL_AND_MEDIUM_ENTERPRISES_FIRM_BASED_MOTIVES_IN_THE_MANUFACTURING_S/links/62a2f03b6886635d5cce242f/International-Journal-of-Economics-Commerce-and-Management-United-Kingdom-Licensed-under-Creative-Common-STRATEGIC-ALLIANCE-AMONG-SMALL-AND-MEDIUM-ENTERPRISES-FIRM-BASED-MOTIVES-IN-THE-MANUFACTURING.pdf
http://ir-library.ku.ac.ke/handle/123456789/25762
http://ir-library.ku.ac.ke/handle/123456789/25762