Kelvin Kamau Mwenda, Dr. Paul Kariuki


Performance evaluation encompasses an assessment of all aspects within an organization, including processes, operation, and the human element. Strategic alliances serve as a means to enhance the performance of organizations. In this research, we explored the connection between strategic alliances and the performance of commercial banks in Kenya. The study specifically investigated the impact of strategic alliances on the bank’s performance, with performance being measured using metric such as return on assets and changes in market share. The specific objectives aimed to ascertain the influence of joint ventures and outsourcing practices on the performance of commercial banks in Kenya. This study used a descriptive design with questionnaires used as the instrument for primary data collection and data entry tables used for secondary data collection. With a target population of 40 licensed commercial banks in Kenya, E-Questionnaires were emailed to each one of them. The unit of observation was a marketing Director, information technology Director, investment Director, and a finance Director from each bank. The research conducted a comprehensive survey of the entire target population through a census. Data collection and analysis were carried out using SPSS version 25, resulting in the generation of frequency distributions. Both descriptive and inferential statistics were employed to draw conclusions. The study utilized multiple regression analysis to establish the correlation between strategic alliances and the performance of commercial banks in Kenya. The findings of this research yielded critical insights into the impact of strategic alliances on the performance of commercial banks. Specifically, the study revealed that joint ventures, and outsourcing had a positive and significant effect on the performance of commercial banks in Kenya. Therefore, it is recommended that commercial bank directors should consider embracing joint ventures, as they enable banks to tap into larger markets, ultimately increasing profitability and competitiveness. Lastly, the study suggests that commercial banks should adopt outsourcing practices to allow them to focus on their core business activities.

Key Words: Strategic alliances, Joint ventures, Outsourcing practices, Commercial banks

Full Text:



Arend, R. J., & Amit, R. (2018). Selection in Strategic Alliance Activity: Effects on Firm Performance in the Computing Industry. European Management Journal, 23(4), 361-381.

Arrigo, E. (2019). Alliances, Open Innovation and Outside-in Management. Journal of Management Policies and Practices, 2(4), 97-112.

Aydalot, P., & Keeble, D. (2018). High Technology Industry and Innovative Environments: The European Experience. Abingdon-On-Thames, United Kingdom: Routledge.

Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17, 99-120.

Bernard, H. R. (2011). Research methods in anthropology: Qualitative and quantitative approaches.

Charles, N., & Gapaya, S. (2018). Effect of Technological Alliance on the Performance of Microfinance Institution In Rwanda. European Journal of Business and Social Sciences, 7(03), 19-36.

Flick, U. (2011). Introducing Research Methodology: A Beginner’s Guide to Doing a Research Project. Thousand Oaks, CA: Sage Publication.

Onje F and Oloko M (2016) Influence of Strategic Alliance on Financial Performance of Commercial Banks in Kenya. International Journal of Social Sciences and Information Technology (IJSSIT), Volume II, Issue IV, June 2016, PP 1-17.

Goyal, S., Chawla, D., & Bhatia, A. (2016). Innovation: Key to Improve Business Growth Of Banking Industry. International Journal of Advances in Engineering & Technology, , 9(3), 331.

Gray, B. & Yan, A. (1992). A Negotiations Model of joint venture formation, structure and performance: Implications for Global Management. Advances in International Comparative Management, 7,41-75.

Hair, J. (2010).Multivariate Data Analysis, 7th Edition. Upper Saddle River, New Jersey: Prentice Hall.

Harrigan, K. R. (2017). Strategic Alliances as Agents of Competitive Change. In Collaborative Strategy. Cheltenham, United Kingdom: Edward Elgar Publishing.

Helfat, C., Finkelstein, S., Mitchell, W., Peteraf, M., Singh, H., Teece D. & Winter S. (2007). Dynamic Capabilities: Understanding Strategic Change in Organizations. London: Blackwell.

Hendayana, Y. (2019). The effect of innovation on business competitiveness of small and medium enterprise in Indonesia. Proceedings of the 2019 International Conference on Organizational Innovation (ICOI 2019).

Husain, Z., Dayan, M., & Di Benedetto, C. A. (2016). The Impact of Networking on

Competitiveness via Organizational Learning, Employee Innovativeness, and Innovation Process: A Mediation Model. Journal of Engineering and Technology

Management, 40(8), 15-28.

James, L. (2015). What is Organizational Performance. Retrieved from

Kambua, D. B. (2018). The effect of agency banking on financial performance of commercial banks in Kenya. MBA Thesis, University of Nairobi.

Kiptis, K. (2018). Influence of Bancassurance on Financial Performance of Commercial Banks in Nakuru Town, Kenya. International Journal of Research in Business Management, 4(4), 19-30.

Klus, M. F., Holotiuk, F., & Lohwasser, T. S. (2018). Motives to form alliances for digital innovation: The case of banks and Fintechs. In Digital Transformation – Meeting the challenges. []

Koriyow, O., & Karugu, J. (2018). Competitive Intelligence Strategies and Performance of Commercial Banks in Garrisa County, Kenya. International Academic Journal of Human Resource and Business Administration, 3(1), 371-394.

Matokho, K., & Anyieni, G. (2018). Strategic Partnerships and Performance of Listed Commercial Banks in Kenya. International Journal of Contemporary Aspects in Strategic Management, 2(1), 1-13.

Muathe, S. (2021). Performance of Commercial Banks in Kenya: Does Market Entry Strategies Matter. Journal of Business and Management Sciences. DOI: 10.12691/jbms-9-3-4

Mwamuye, J., & Ragui, M. (2021). Strategic Alliances and the Financial Performance of Commercial Banks in Nairobi City County, Kenya. Journal of Business and Strategic Management, 6(4), 32-45.

Ngugi, H. (2018). Influence of Innovation Strategy on Competitiveness of Commercial Banks in Kenya. University of Nairobi. Unpublished Thesis.

Nzengya J. (2013). Strategic Alliances Among Commercial Banks In Kenya, Unpublished MBA Project, University of Nairobi.

Onje, F., & Oloko, D. (2017). Influence of strategic alliance on financial performance of commercial banks in Kenya. PhD Dissertation JKUAT.

Shen, L., & Cheung, S. O. (2018). How forming joint ventures may affect market concentration in construction industry. International Journal of Construction Management, 18(2), 151-162.

Singh, D. & Sandhu, N. (2017). New Market Entry Strategies: Public and Private Sector Banks in India. . SCMS Journal of Indian Management, 4(1).

Wayne, W. (2016). Behavioral Change Models. Retrieved from

Yan, A., & Luo, Y. (2016). International Joint Ventures: Theory and Practice: Theory and Practice. Abingdon-On-Thames, United Kingdom: Routledge.

Zaefarian, G., Forkmann, S., Mitręga, M., & Henneberg, S. C. (2017). A Capability Perspective on Relationship Ending and its Impact on Product Innovation Success and Firm Performance. Long Range Planning, 50(2), 184-199.

Zikri, R. (2020). Effect of Strategic Alliances on the Growth of Market Share of Commercial Banks Malaysia. Journal of Strategic Management, 4(4), 56-70.


  • There are currently no refbacks.