STRATEGIC PARTNERSHIP TYPES AND COMPETITIVENESS OF SMALL AND MEDIUM ENTERPRISES IN KENYA: A STUDY CLEARING AND FORWARDING COMPANIES AT JOMO KENYATTA INTERNATIONAL AIRPORT
Abstract
The objective of this study was to identify the types of strategic partnership and how their effectiveness in enhancing competiveness in the clearing and forwarding SMEs; with focus on Joint venture, marketing and distribution and supplier partnerships. In addition the study was to identify the type of partnership that best enhance competitiveness of a firm .The study used descriptive case study design where a convenient sample was used to create a sample frame, 22 SME business in the clearing and forwarding and 110 respondents were considered. The study used structured and semi-structured questionnaires to collect data which was analysed using MS Excel Spreadsheet and relationship among variables established using correlation analysis. The study found that the key strategic partnerships studied create competitiveness through co-operation rather than competition. The study also established that strategic partnerships provide partners with an opportunity to tap into resources, knowledge, capabilities and skills of their partners to gain competitiveness. In summary the study affirmed that strategic partnership especially non-equity strategic alliances are positive and significantly correlated with organizational competitiveness. The study therefore concluded that strategic partnerships create interdependence between the partner firms which bring benefits in the form of intangible assets and capabilities. These assets (superior skills) and capabilities (superior resources) are the main sources of competitiveness for a firm. The study recommended that though strategic partnerships are a basic necessity for the growth of SMEs, the partners must clearly understand the key objective of entering into an agreement, in addition with the explosion of e-commerce the SMEs should shift their focus towards partnerships that enable them gain technological advantage. Therefore Technical/functional, relational and developmental competencies must be balanced and continuously developed.
Key Words: Joint venture, marketing, distribution, supplier partnerships, Strategic Partnerships
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DOI: http://dx.doi.org/10.61426/sjbcm.v5i4.968
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