STRATEGIC ALLIANCE CAPABILITY AND COMPETITIVE ADVANTAGE OF TELECOMMUNICATION FIRMS IN RIVERS STATE

Abstract

This study examined the relationship between strategic alliance capability and the competitive advantage of telecommunication firms in Rivers State, Nigeria. The dimensions of strategic alliance capability investigated were relational capability and knowledge sharing capability. Competitive advantage was conceptualized through two measures: cost advantage and differentiation advantage. The study addressed two research questions and tested two corresponding null hypotheses. A descriptive survey research design was employed, with a population comprising four major telecommunications operators (MTN, Airtel, Globacom, and 9mobile). Using a purposive sampling technique, data were collected via a structured questionnaire from 76 top and middle management staff involved in alliance activities. Data analysis was conducted using Pearson’s product-moment correlation coefficient. The findings revealed a significant positive relationship between relational capability and cost advantage (r = .684, p < .01), and between knowledge sharing capability and differentiation advantage (r = .682, p < .01). The study concludes that strategic alliance capability is a critical driver of competitive advantage in the telecommunications sector. It is recommended that firms deliberately strengthen relational capability to reduce operational costs and enhance coordination, while investing in knowledge-sharing structures to foster service innovation and differentiation.