Implementation of Strategic Alliance in Weak Institutional Context.

(A Case study of Multinational Companies in the Food and Beverage Sector in Nigeria)

Abstract

This study investigates how Multinational Corporates in the Nigerian Food and Beverage sector leverage strategic
alliances for growth, business expansion and market penetration, putting in context the country’s weak institutional environment and its multi-ethnic diversity. The study was carried out via interviews, business reports, news and Case study covering 3 MNCs operating in different regions of Nigeria.

The specific objectives of the study include the following:
a. To investigate the strategies deployed by MNCs in the Food and Beverage sector in Nigeria to penetrate different regional markets, considering the country’s multi-ethnic and weak institutional context;
b. To identify and analyze the factors influencing the formation and maintenance of strategic alliances by MNCs in different regions of Nigeria, with particular attention to Fast Moving Consumer Goods (FMCG) industry;
c. To examine the role of institutional factors and dynamic capabilities in facilitating and sustaining strategic alliances within weak institutional structures in Nigeria as a developing economy;
d. To understand the operational adjustments made by MNCs to accommodate strategic alliances across Nigeria’s regional cultural and economic divides, particularly focusing on
the Food and Beverage industry; and
e. To understand the strategic decision-making processes employed by MNCs in implementing and managing strategic alliances across various regions in Nigeria, considering its diverse cultural landscape and institutional fragility.

The study points managers (especially those within the food and beverage sector) on how best to implement strategic alliance in developing Countries with weak Institutions. Secondly, using a case study approach, this study provides practical and further understanding of the complex dynamics underpinning the implementation of strategic alliance in a multi-tribal environment. Thirdly, by focusing on MNCs in a multi-ethnic developing country with weak institutions, the study sheds light on the role played by Institutions in shaping the strategic alliance relationship within which MNCs engage in a multi-tribal environment. Finally, this study offers insights and specific actionable recommendations for a more disciplined and rigorous approach to strategic alliance implementation in weak institutional contexts with multi-ethnic environment.