Abstract: Strategic alliance as a strategy for enhancing performance has become monumental as organizations scramble for survival to reduce costs and be stronger in order to compete (Ulijn, 2010). Strategic alliance is a variable that is very vital because it can improve business performance both directly and through the ability of innovation. The main objective of the study was to examine the effect of strategic alliance on financial performance of Postbank financial partners: The specific objectives of the study were; to determine the short term, medium term and long term effect of strategic alliance on revenue performance, cost efficiency and profitability of the Postbank financial partners. The Resource Based Theory, resource dependence theory anchored the study. Of concern to the study, was how the proportion of funds set aside for strategic alliances, financial leverage and size of Postbank financial partners influenced their financial performance which was measured by the rate of return on assets. The sample targeted financial statements for the one, three and five years prior to and after strategic partnering for the ten partners. The study was descriptive design targeting Postbank’s ten financial partners. Document analysis was used to collect data from bank statement of financial performance and statements of comprehensive income during the period 2000-2016. Data was analysed using Statistical Packages for Social Sciences (SPSS) version 23.Descriptive measures namely mean, median, standard deviation and range were used. In addition, inferential statistics F-test was used to check if there were significant differences in performance between the prior and the periods after strategic partnering. Correlation analysis was used to determine the nature and the strength of the relationship between the independent and dependent variables. The study found out that strategic alliances have a positive effect on revenue and profitability and no effect on cost efficiency of Postbank financial partners. Going by the findings, if Postbank financial partners are to enhance their financial performance, there is needed to increase their engagement into strategic alliances. Finally, the study recommended that Postbank financial partners should increase their network of branches countrywide to attract new customers to open new accounts and in so doing increase their deposits.
Keywords: Strategic alliances, financial performance, Postbank, financial partners, Kenya.
Title: EFFECT OF STRATEGIC ALLIANCES ON FINANCIAL PERFORMANCE OF POSTBANK FINANCIAL PARTNERS IN KENYA
Author: Dorcas Njoroge, Dr. Doris Mbugua
International Journal of Thesis Projects and Dissertations (IJTPD)
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