Influence of Strategic Alliances on Performance of Firms in the Tourism Sector in Nairobi County, Kenya

Abstract

Purpose: The study sought to establish how strategic alliances influence performance of firms in the tourism sector in Kenya. The study specifically centred on establishing the influence of technology alliances, marketing alliances, financial alliances and distribution alliances on performance of firms in the tourism sector. The theories anchoring the study comprised of Organizational Learning Theory, Positioning Theory, Resource Dependency Theory and Strategic Behaviour Theory. Methodology: The study targeted tourism partners comprising of 44 tourist rated hotels, 210 travel agents and 660 tour operators operating in Nairobi County and licensed by Tourism Regulatory Authority. One manager from each of the firm formed the unit of observation. Yamane (1967) sampling formula was employed to develop a sample of 273 respondents. Primary data was collected through questionnaires containing close ended questions. The data collected was analyzed by employing both inferential analysis and descriptive statistics using MS Excel and SPSS software V22. The results and findings of the analysis were presented in form of tables and figures. Findings: The results established that strategic alliances account for 55.7% of variations on performance of firms in the tourism sector. Additionally, technology alliances, marketing alliances, financial alliances and distribution alliances bears a positive and significant influence on performance of firms in tourism sector operating in Nairobi County, Kenya. This is shown by beta values of 0.486, 0.376, 0.284 and 0.401 and significance values of 0.000, 0.004, 0.011 and 0.000. Unique contribution to theory, practice and policy: The results bears the implications that increasing either of the independent variable with one unit results to increase in performance levels of the firms with respective beta values. The study recommends the management of firms to enhance practices in technology alliances, marketing alliances, financial alliances and distribution alliances since the practices bear a positive significant influence on performance of the firms.