Impact of Strategic Alliance Management on Competitive Advantage among Financial Institutions in India
Businesses have become very competitive in an emerging market when they give importance to strategic alliances that build their reputation in the market environment. Essentially, the key reason for strategic alliance management is the desire of firms to obtain increased business productivity and increased competitive edge and the ultimate goal of strategic alliance is to improve business productivity. Strategic alliance management is critical for firms that are in pursuit of improved productivity and their reward is often an increase in their profits and their market share. Process of strategic alliance management is strongly associated with organizational learning and refers to ability of organization to generate, accept and implement new ideas, processes, products or services. The primary goal of process strategic alliance is to generate a notable increase in productivity or to drive down costs significantly. This approach can help organizations achieve major reductions in process cost, improvements in quality, service levels and other business objectives. Strategic alliance management is contributor to creation of new markets and products for the market, however even after the benefits of strategic alliance management has been established the impact of strategic alliance management on productivity of Businesses has remained misunderstood. The study used a desk study review methodology where relevant empirical literature was reviewed to identify main themes. Result findings from literature-based review indicated that strategic alliance management had positive and significant influence on competitive advantage among financial firms in India. The study established that financial institutions in India have employed strategic alliance management practices to effectively manage costs, overcome resource and technology constraints, and enhance competitive position. Strategic alliances was found to have led to productive institutional collaborations in rural financial markets, thereby expanding the array of financial products, and scaling up access of rural households and micro-businesses to financial services. Strategic alliances comprise a new theme in rural finance. It was recommended that strategic alliance information should be available particularly to regulatory and advisory bodies in India for guidance to the businesses on the need to craft and employ sound strategies geared towards continuously embracing innovativeness since strategic alliance leads to improved financial productivity and competitive advantage.
Keywords: Strategic Alliance Management, Marketing Alliance Management, Venture Alliance Management, Competitive advantage, Financial Institutions
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