Global Journal of Management and Business Research, A: Administration and Management, Volume 22 Issue 7

II. C onceptual C larifications a) Concept of Strategic Business Alliance An alliance in business is a connection between two persons, a group of people, or a state that comes together for their mutual benefit or to accomplish a common goal. Whether or not the agreement entered is explicit, the parties involved in the alliance are duty- bound to keep to the rules of the contractual agreement (Ponomarenko, 2016). A strategic alliance (SA) is therefore a type of partnership that supports a company's core business strategy, fosters competitive advantage, and deters rivals from entering a monopolized market. Strategic partnerships allow businesses to pursue their shared interests by combining their resources, talents, and core competencies to create, produce, or sell goods and services (Abbah, 2015). Similar to joint ventures, strategic alliances have gained popularity as tactical alternatives for businesses seeking cooperation with both domestic and foreign partners. Access to information, resources, technology, and markets is provided by alliances and networks (Akinnagbe, 2010). Morris, Kuratko,, and Schindehutte, (2011), argued that networks play even more crucial competitive functions for innovative businesses. For instance, networks provide entrepreneurial businesses legitimacy when they collaborate with another, well-known, and esteemed organization. Additionally, Morris et al, (2011), noted that alliances can foster affairs between entrepreneurial firms' customers. Besides, the formation of new independent business ventures often is based either on the network ties of a specific entrepreneur or of an entrepreneurial group in the case of business ventures by superior and bigger firms in terms of networking, finance, and connection. Specifically, it is argued that sources of ideas for new business ventures often come from social networking. Therefore, networking is a major source of entrepreneurial prospects (Teece, Pisano & Shuen, 2013). Most crucially, network connections can help entrepreneurs access the most vital resources needed to launch and run a new business. The quantity and depth of network linkages are thus positively correlated with the performance of entrepreneurial firms (Nzitunga, 2015) b) Vertical and Horizontal Integration Ngige (2007) posits integration strategies as measures taken to consolidate a firm's activities to gain more control of critical external variables directly affecting the business. Integration can be broadly subdivided into two activity types, vertical and horizontal integration. Vertical integration according to Abbah (2015), comprises two strategies; forward and backward combination. Forward business integration implies gaining complete or partial ownership or better control over the line of distributors or retailers along the distribution chain. It also involves linking with firms producing similar products in alliance or merger and acquisition (Morris, et al., 2011). Backward integration, Mamman, Aminu, and Adah (2013), saw as activities of a firm to create its independence or action by acquiring ownership or increasing its control of suppliers of vital inputs. Horizontal business integration on the other hand is seen by Anand and Khanna (2012), as a plan for taking over or exerting more power over a company's rivals. It can also be used as a growth strategy and involves acquisitions. Thus, Teece, et al., (2013), opined that a firm desirous to consolidate its market position would adopt horizontal integration, as this tends to eliminate or minimize competition. Yuhua (2014) described the benefits of strategic alliances to SME development in three ways, Productivity gain, which involves outsourcing products and services to enable SMEs to produce better or cheaper, enhance technological specialization, and achievement of economies of scale; therefore giving SMEs a certain degree of bargaining power. The adoption of strategic entrepreneurship gives specialized SMEs access to a reliable market; as inter-industry connections based on shared specialization typically extend beyond arms-length transactions to include, among other things, delivery schedule coordination and product standardization (Mendola, 2007), thus encouraging a long-term loyalty on the part of her esteemed customer. Strategic entrepreneurship- induced alliances according to UNCTAD (2011) promote factor-cost advantages, a state in which SME operators are privileged to have unlimited access to inexpensive production factors, mostly lower labour expenses, due to the unpretentiousness of the workplace or a non- unionized staff. Price competition is typically strong when the production process is standardized and the required technology is available, forcing businesses to consistently decrease prices and achieve significant advances in efficiency (Zamir, Sahar, & Zafar, 2014). Additionally, the benefits of SMEs strategic alliances which are the basis for SME development allow partners to scale quickly, build innovative solutions for their customers, enter new markets and pool valuable expertise and resources. In a business environment that values speed and innovation, the strategic business alliance is a game-changer (Anoke & Okpanaki, 2022). The prerequisites for such a flexible and smooth running of the coordinated system, however, are technology innovation and multi-skilled labour which are seen as drivers of systematic business alliance. c) Empirical Evidence Igbokwe and Elikwu (2019) studied the implications of strategic entrepreneurial alliances on Strategic Entrepreneurship Alliances and Sustainable Growth of Small Businesses in Nigeria: The Nexus 15 Global Journal of Management and Business Research Volume XXII Issue VII Version I Year 2022 ( ) A © 2022 Global Journals