Assessing the Effect of Strategic Alliances on Organizational Performance of Commercial Banks in Nigeria

Abstract

This study was carried out to examine the effect of
Strategic Alliances on Organizational performance
of commercial banks in Nigeria. The study adopted
a cross-sectional survey design with primary data
generated through self-administered questionnaire.
The population for this study was five (5)
commercial banks in South-South, Nigeria. The
study however focused mainly on their regional
offices located in Asaba, Delta State, Nigeria. Six
regional managers for each bank were used as the
study respondents giving a total of 30 respondents.
Census sampling was adopted since the study
sample was small. The reliability of the instrument
was achieved by the use of the Cronbach Alpha with
all the items scoring alpha coefficient above 0.70.
The hypotheses were tested using the spearman rank
order correlation co-efficient with the aid of
statistical package for social sciences (SPSS). The
tests were carried out at a 95% confidence interval
and a 0.05 level of significance. The study findings
revealed that there is a significant relationship
between strategic alliances on revenue
performance, cost efficiency performance and on the
profitability of commercial banks in South-South,
Nigeria. The study recommends that commercial
banks should invest in modern technologies to
effectively integrate all the banks functions and
activities to minimize operational costs. The top
management team should invest more on financial
innovations so that customers will have a wide scope
of banking products to choose from leading to
customer satisfaction and improve value addition
which in turn enhances financial performance.