STRATEGIC ALLIANCES AND PERFORMANCE OF FOOD AND BEVERAGE MANUFACTURING COMPANIES IN KENYA

Abstract

The current hash economic times and limited resources have forced organizations tofoster appropriate strategic alliances to improve on their performance. Evidence fromprevious empirical studies shows that scholars have investigated the relationship ofstrategic partnerships and firm performance with varied results. In this study, wecollected and tested data from 125 Large-Scale Food and Beverage ManufacturingCompanies (FBMC) in Kenya. The study covered a three year period. The paper testedthe alternative hypothesis that strategic alliances have a significant stimulus onperformance using regression analysis. However, the evidence did not support thispreposition. To the contrary, the connection between strategic collaborations andperformance was found to be insignificant. This suggests that a firm’s success throughstrategic relationships is not pronounced as in a pure competitive market like agroprocessingbusiness as it is in a monopolistic or duopolistic rivalry. Thus the outcome ofthe study contributes to knowledge pool in strategic management by determining theconnections of strategic associations and firms’ performance. Senior executives inFBMC in Kenya will apply the findings to evaluate crucial partnerships for enhancedperformance. The study offers valuable direction for policy makers and owners of foodand beverage manufacturing companies. Areas for further research has beenrecommended at both contextual and conceptual levels.