aDepartment of Business Administration- School of Business, University of Nairobi, Nairobi - Kenya
bDepartment of Business Administration- School of Business, University of Nairobi, Nairobi - Kenya
cDepartment of Applied and Industrial Mathematics - School of Mathematics, University of Nairobi, Nairobi - Kenya
*Corresponding author: Peter Mutuku Mathuki, Email: petermathuki@gmail.com
The study sought to establish the influence of macro environment on the relationship between strategic alliance and performance of Kenyan manufacturing firms in the East African Community market. The study was anchored on resource dependency theory (main anchoring), Resource Based Theory, Integration theory and Open System theory.. The positivism philosophical paradigm and a cross sectional descriptive survey design adopted guided the study. The population of the study was 160 Kenyan manufacturing firms in the EAC market. Primary data was collected using a semistructured questionnaire. A response rate of 81% was realized. Secondary data was collected from financial statements of the respective firms. Data was analyzed using descriptive and inferential statistics. Hypotheses was tested using Baron and Kenny (1986) model of stepwise regression analysis to test for moderating effects. The findings indicated the moderating role of macro environment on the relationship between strategic alliance and firm performance was statistically significant. These results are consistent with propositions in the resource dependence and open system theories. In a regional integration framework, firms depend on each other through strategic alliances to gain competitive advantages as envisaged in resource dependency theory. For open systems theory, integration and macro-economic events, which are external to the firm, influences performance. The study has made contribution to theory, policy and management in relation to how macro-environment influences relationship between strategic alliances and firm performance. The study recommends that policy makers in EAC partner states should encourage complementarity and competitive advantage approaches while promoting skills transfer and information sharing amongst the firms. Future research directions include a replication of study in a longitudinal approach while using path analysis or structural equation models and consideration of other sectors, firm characteristics and resource constraints.
Strategic Alliance, Macro Environment, Firm Performance, Kenyan Manufacturing Firms in the East African Community Market, Resource Dependency theory
