Entry strategies used by multinational auditing firms in Kenya

Abstract

The main objective of study was to identify entry strategies used by multinational auditing firms in Kenya Despite abundant research on entry strategies in International Business (IB) studies, scholars have paid scant attention to the social context within which entry strategies into foreign markets are embedded. Few studies have contrasted economic and social explanations for choices on entry mode strategy. It is unclear, for example, how different entry mode strategies reflect internal, inter-firm and external environment pressures. It is accepted, however, that the models of interaction between firms and their institutional environments determine the firms’ adjustment to external constraints and may promote the firms’ survival, even if the external environments are unknown and cannot be accurately predicted. The research adopted cross sectional and descriptive survey method aimed at establishing entry strategies used by multinational auditing firms in Kenya. The target population of this study consisted of all the 15 multinational auditing firms in Kenya. The response was from 35 respondents who returned questionnaires fully answered giving us a response rate of 77.7% which was adequate for the study. The study found that different firms use different entry modes and this informs the marketing strategies used. It is very crucial to identify cultural differences as this may impose a major risk between cultures. One of the fundamental steps that need to be taken prior to beginning international audit is the environmental analysis. It is good to assess all factors that lead to choosing an entry mode. Negative assessment of any market factors may affect entry mode.