STRATEGIC ALLIANCE AND ITS EFFECT ON ORGANIZATIONAL EFFECTIVENESS

The study examined the effect of strategic alliance on organizational effectiveness of manufacturing firms in Benue and Plateau State Nigeria. The objectives of the study were to examine the effect of strategic alliance proxies by technology, marketing and structural alliance on the organizational effectiveness proxies by productivity. The study also mediated the effect of environmental dynamism of the relationship between strategic alliance and organization effectiveness. A survey research design was adopted for the study, the population consisted of  1119 employees of the 15 manufacturing companies in Benue and Plateau State. A sample size of 294 was arrived at using Taro Yamane formula. A purposive sampling technique was used in selection of companies involved in processing and also the departments involved in alliance while a stratified sampling was used in selecting employees in various companies, multiple regression  was used in analysis. Findings from the study revealed that technology alliance and marketing alliance had significant effect of organizational effectiveness while there was no significant effect of structural alliance on organizational effectiveness. Environmental dynamism had significant effect between strategic alliance and organizational effectiveness. The study concludes that strategic alliance has significant effect on organizational effectiveness  and recommended amongst other things, that manufacturing companies should encourage partnership in areas of technology , innovation and research to boast effectiveness, this could be achieved through collaborations in terms of training of personnel, joint  sponsorship in research.

Key words: Strategic Alliance, technological alliance, marketing alliance structural alliance organizational effectiveness.