STRATEGIC ALLIANCE AND PERFORMANCE OF SUPERMARKETS IN NAIROBI CITY COUNTY, KENYA

Jane Imujaro, Dr. Mary Mwanzia

Abstract


Supermarkets in Kenya face several challenges that hinder their growth and impact their performance. The general objective of this study was to assess the influence of strategic alliance on performance of supermarkets in Nairobi City County, Kenya. Specifically, the study sought to assess the influence of visioning on performance of supermarkets in Nairobi City County, Kenya and to determine the influence of joint ventures on performance of supermarkets in Nairobi City County, Kenya. This study was guided by: Goal Setting Theory and Resource Dependence Theory (RDT. This study used of a descriptive research design. This study targeted registered supermarkets in Nairobi County Kenya. According to The Retail Trade Association of Kenya (RETRAK) (2023), the total number of registered supermarkets in Nairobi County is 110. This study therefore targeted senior management employees (1 top management employee, 2 middle level management employees and 3 lower management employees) in all the 110 registered supermarkets. The total target population was therefore 660 employees. The study’s sample size was reached at using Krejcie and Morgan sample size determination formula. The sample size was therefore 243 respondents who were chosen with the help of stratified random sampling technique. This study relied on primary data. Primary data was collected through use of semi structured questionnaires. The study also conducted pilot test to test the validity and the reliability of the data collection instrument. The data collection instrument generated both qualitative and quantitative data. The study used both descriptive and inferential statistics for data analysis with the aid of Statistical Package for Social Sciences (SPSS version 25). Descriptive statistics such as mean, standard deviation, frequency and percentages were used in this study. In relation to inferential statistics, the study used correlation analysis. This was used to establish the relationship between the independent and the dependent variables. Data was then presented in a tables, bar charts and pie charts. The study concludes that visioning has a positive and significant effect on performance of supermarkets in Nairobi City County, Kenya. In addition, the study concludes that joint ventures have a positive and significant effect on performance of supermarkets in Nairobi City County, Kenya. Based on the findings, the study recommends that the management of supermarkets in Nairobi City County should actively pursue and establish strategic joint ventures as a means to enhance their overall performance. Joint ventures enable supermarkets to pool resources, access new technologies, expand their market reach, and share operational risks—factors that are crucial in navigating the competitive and dynamic retail environment of Nairobi

Key Words: Strategic Alliance, Visioning, Joint Ventures, Performance of Supermarkets


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