Effect of Entry Mode Strategies on the Performance of Shipping Firms in Kenya
Abstract
Entry mode strategies are important as they affect the performance of shipping firms in
Kenya. The topic of study was the effect of entry mode strategies on the performance of
shipping firms in Kenya. The objective of study was to establish the effect of entry mode
strategies on performance of shipping firms in Kenya. The research design adopted in this
study was a cross sectional survey. The population of interest in this study comprised of
42 shipping firms in Kenya. The study used Primary data. The data was collected using
semi structured questionnaires that were personally administered to the logistics and
operations managers in all 42 shipping firms in Kenya. Descriptive statistics method was
used in the study and analyzed using Statistical Package for Social Sciences (SPSS).
Inferential statistics including regression and correlation analysis were also carried out to
link the independent variables to the dependent variable by use of a regression model.
The study found out that the legal framework for trade and investment, trade and
investment incentives in Kenya, political factors such as political risk, stability and
predictability, foreign trade and investment regulations in Kenya, the political economic
policies of the host country, and the prospects of economic growth. Other methods of
analysis in addition to inferential and descriptive analysis could be done to compare the
outcomes. The recent economic performance indicators and GDP/GNP per capita income
over the last 2 years, the socio-cultural factors such as social institutions, religion,
material culture, norms and values are environmental factors that have been found to
affect companies’ entry strategies. The study also found out that most of the shipping
companies in Kenya use exporting as the main entry mode strategy, in addition to turnkey
projects, licensing, franchising, joint ventures, and wholly owned subsidiaries. The study
also concluded that there is a significant relationship among the independent variables
(Exporting entry mode, Licensing entry mode, Turnkey operations entry mode,
Franchising entry mode, Joint ventures entry mode and wholly owned subsidiaries) and
the performance of shipping companies in Kenya. The researcher had time constraints
being an employee and an MBA student at the same time. Balancing between work and
the research produced limitations which spilled over to the research. Suggestions for
further research is recommended in other sectors or industry. Carrying out similar
research on firm performance in other countries of Africa where shipping industry is
organized and developed, is recommended to improve performance of shipping firms in
Kenya.
Publisher
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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