Internationalization and Performance of Kenya Commercial Bank
Abstract
Internationalization has opened up markets and heightened competition among firms and businesses operating in countries that embolden free markets. Internationalization enables firms to tap into fresh markets take advantage of new opportunities; this widens the scope of the business resulting into increased sales and firm performance. Although there many benefits from internationalization process, a huge capital investment is required to achieve success in gaining entry in a new market. The main goal of this study was determining the influence of internationalization on performance of Kenya commercial bank. To achieve this objective, this study implementer a case study research design that enabled an in-depth investigation of internationalization process and its contribution towards performance. Raw data was collected by interviewing the four heads of departments these included Head of Business Development, Head of Marketing, Head of Operations and the Head of Finance. The decision to choose this group of interviewees was because they were directly in decision making concerning internationalization process and performance. Analysis of data was achieved through use of content analysis that entailed textual analysis and details regarding the study object. The study found that improved regional integration, business expansion into new markets, and venturing into fresh markets were identified as the major benefits that KCB gained from internationalization. As a result of internationalization process, KCB recorded an increase in: market share, profitability, and growth in deposits. The findings further revealed that inadequate skills by management, limited financial resources as well as poor incentives to invest in the foreign markets were the major barriers to the bank’s speedy process of internalization. The study recommends that commercial banks should formulate strategies that improve the internationalization processes. The study is inapplicable to firms outside the banking sector or others banks because Kenya Commercial Bank was the only Kenyan ban involved in the study due to time and cost constraints. Additionally, some interviewees were unwilling to cooperate; some of the senior staff directed the junior staff to take the interviews on their behalf.
Publisher
University of Nairobi
Description
A Research Project Submitted In Partial Fulfillment of the Requirements for the Award of the Degree of Master of Business Administration, School of Business, University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
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