Moderating Effect of Firm Size on the Relationship between Joint Marketing Alliances and Firm Performance of Retail Firms in Nairobi County, Kenya

Abstract

The study investigates the Moderating effects of firm size on the relationship between joint marketing alliances and the firm performance of retail firms in Nairobi County. The aim of the study was to evaluate the direct influence of joint marketing alliances on firm performance and the moderating effects of firm size on the relationship between joint marketing alliance and firm performance Resource Dependency Theory was used to guide the study. The study adopted explanatory research design. The target population of the study consisted of 490 top management officials working in the 47 retail firms in Nairobi County, Kenya. The study used stratified and simple random sampling technique to select a sample of 216 respondents. Data is quantitative and was collected using a questionnaire. The study used both descriptive and inferential statistics so multiple regression was used as it is the most applicable in this study. Correlation analysis was used to determine the strength of linear relationship between the variables being analyzed in the research. Study findings indicated that joint marketing alliance, has significant effect on firm performance. Based on the findings creating a joint marketing enhances firm performance. In addition, findings indicated under high firm size increase on firm performance. Furthermore, the study found out that firm size has a moderating effect on the relationship between joint marketing alliance and firm performance. The study recommends that firms need to share research and development resources with its strategic partners, shares manufacturing cost to develop marketable products. Firms have to engage in joint marketing alliances with firms that have well-established customer relationships so as increase their market and thereby enhance performance. Finally, It is necessary for firms to engage in joint marketing alliances with others and joint promotion services and product with other firms in order to enhance firm performance.