Effects of Strategic Alliance on The Performance of Fast Food Companies in Kenya: A Case of Innscor Kenya

Abstract

As the business environment become more competitive, companies are turning to strategic alliance for increased competitiveness. The strategic alliance strategies applied by any organization have a significance effect on the organizational performance. The study aimed to determine the effects of strategic alliance on the organizational performance in fast food industry in Kenya with reference to Innscor Kenya. The study objectives were to; establish the forms of strategic alliances used by Innscor Kenya, determine the measures of performance of Innscor Kenya and identify the effect of the strategic alliances on the performance of Innscor Kenya. Descriptive research design was employed. The study targeted 68 respondents drawn from senior management staff, middle management staff and lower management staff. Questionnaires were used in data collection, which was analyzed through the use of Statistical Package for Social Sciences (SPSS). The study established that joint venture at 87.3% was the most employed form of strategic alliance compared to franchising at 12.7%. Further, 74.6% of the respondents indicated that the company had improved in terms of performance due to the adoption of Strategic Alliance. Finally, the study established that strategic alliance had significance influence on organization performance at 77.2%. It was concluded that Innscor Kenya had registered better performance since it adopted the strategic alliance and was able to access new markets than before. The study recommended that strategic alliance partners needed to establish and outline the reasons they were getting into strategic alliance before they get into such arrangements. There is also need for the company to identify the most appropriate strategic alliance form to ensure that they are able to maximize their profit and ensure that they also increase their market share and the sales volume.