Strategic Corporate Alliances, Government Regulations and Performance of Selected Food Fortification Firms in Kenya

Abstract

Strategic corporate alliances have gained significant attention, and in an increasingly competitive global market, firms recognize the necessity of collaboration to leverage shared resources, knowledge, and market access. Despite the recognized benefits of food fortification in addressing micronutrient deficiencies, many food fortification firms struggle with operational inefficiencies and suboptimal performance. As such, the main purpose of this study was to evaluate the effect of strategic corporate alliances and government regulations on the performance of selected food fortification firms in Kenya. The specific objectives of the study were: to investigate the strategic corporate alliances adopted by food fortification firms in Kenya; to examine the effect of resource access on the performance of selected food fortification firms in Kenya, to assess the effect of visibility support on the performance of selected food fortification firms in Kenya, to establish the effect of knowledge transfer on the performance of selected food fortification firms in Kenya; and to evaluate the moderating effect of government regulations on the relationship between strategic corporate alliances and the performance of selected food fortification firms in Kenya. This study was anchored on Stakeholder Theory (ST) as the anchor theory, as well as other theories comprising of Resource-Based View (RBV), and Institutional Theory. The study adopted a pragmatic philosophical approach, where an explanatory research design was employed; the unit of analysis was selected food fortification firms in Kenya, whereas, the unit of study comprised of a census of 105 senior managers from all the 11 selected food fortification firms in wheat flour, maize flour, edible oil and salt registered with Global Alliance for Improved Nutrition (GAIN). Primary data was collected using semi-structured questionnaires administered via online google forms. Pretesting was conducted among 11 randomly selected staff, equivalent to 10% of the study's sample size. Prior to data analysis, several diagnostic tests were done including normality test, linearity test, homoscedasticity test, and multicollinearity test. Quantitative data was be analyzed using descriptive statistics and inferential statistics and the findings presented in tables. Qualitative data was analysed thematically. Ethical considerations were observed. The findings emphasize the significant role of strategic corporate alliances; resource access, visibility support and knowledge transfer in enhancing performance of selected food fortification firms in Kenya. The mean scores for resource access (4.20), visibility support (4.22) and knowledge transfer (3.98) underscore the perceived effectiveness of strategic corporate alliances by the participants. With an R² of 0.603, the regression model demonstrates that these practices collectively explain 60.3% of the variance in performance. Resource access emerged as the strongest predictor (β=0.395, p<0.05), followed by visibility support (β=0.388, p<0.05) and knowledge transfer (β =0.204, p<0.05). Recommendations focus on strengthening resource access through financial, technical and technological resources. The study also recommends leveraging and strengthening government policies by strengthening the implementation of food fortification standards and availing of fortification incentives to lower cost of premixes. Future research should explore longitudinal studies to measure sustained impact as well as moderating factors, such as technological adoption and organizational culture. These strategies will enable fortification firms to navigate dynamic environments effectively, achieving sustainable performance.