Impact of strategic alliances on the globalization of agribusinesses: A case study of agribusinesses in Kiambu County, Kenya

Abstract

Strategic alliances play an important role in enabling agribusinesses to access global markets, enhance competitiveness, and integrate into global value chains. This study examines the impact of strategic alliances on the globalization of agribusinesses in Kiambu County, Kenya. Using a case study approach, data were collected from 55 agribusinesses through semi-structured questionnaires. Descriptive statistics were employed to assess the influence of various partnership models, including horizontal linkages, forward linkages with foreign value chain buyers, cooperatives for exports, and collaborations with financial institutions and state corporations. The findings reveal that agribusinesses predominantly engage in horizontal and forward linkages, each accounting for 32.7% of partnerships, while cooperatives for exports constituted 12.7%. These alliances were reported to significantly enhance market reach, business expansion, supply chain efficiency, and profitability. However, challenges such as inadequate funding, limited technology adoption, and compliance issues were noted as barriers to maximizing the potential of these partnerships. The study concludes that strategic alliances are a critical driver of globalization for agribusinesses, enabling them to navigate international market complexities and achieve sustainable growth. Recommendations include fostering horizontal and vertical partnerships, promoting cooperative models, and enhancing awareness of partnership opportunities. These strategies can help agribusinesses in Kenya and similar contexts better make use of strategic alliances to access and thrive in global markets.