Kenya lags behind in the attainment of universal healthcare goals and targets and envisions collaborations in healthcare as being critical to the realization of the universal health goals. The general objective of the study was therefore to establish the influence of the alliance management capability on strategic collaboration competitive advantage among universities and teaching hospitals in Kenya. This study adopted a positivist philosophy and a descriptive cross-sectional research design. The study population comprises of ten universities and ten teaching hospitals as approved by the Kenya Medical Practitioners and Dentists Council. The census technique was deployed to make use of all the elements in the population with primary data collected by use of a structured questionnaire, while secondary data was collected using a document review guide. Frequencies, measures of central tendency, and dispersal were used in descriptive statistical analysis while correlations, cross-tabulations, and ordinal logistic regression were used for inferential statistical analysis. Ordinal logistic regression helped determine the significance of relationships between the predictor and outcome variables. The study established that the alliance management capability was significant for collaboration competitive advantage. Competitive advantage was operationalized using financial outcomes and learning and growth. Alliance management capability was a significant predictor of the financial outcome of universities ( β = 1.619, p < 0.05), teaching hospital ( β = 1.663, p < 0.05), and both combined ( β = 1.654, p < 0.05). Alliance management capability was also a significant predictor of learning and growth of universities ( β = 1.577, p < 0.05), teaching hospitals ( β = 2.631, p < 0.05), and both combined ( β = 2.049, p < 0.05).