Influence of internet on SMEs internationalization process: a case of select SMEs.

Abstract

SMEs in Kenya are struggling to survive amid challenges that are threatening their survival due to their evolving nature. Availability of market for their products is one of the major challenge SMEs in Kenya are struggling with. Although the SMEs are putting a lot of work into their products, the local market is congested due to a high number of SMEs focusing on one clientele as well as the entrant of international players such as Amazon and Ali Express. This study aimed to test whether SMEs in Kenya are using internet to sell their products in the global market. The study was anchored on three objectives that sought to: identify actual internet tools used by SMEs in Kenya; determine the extent to which SMEs use internet in reaching international market and establish the consumer category patterns with respect to SMEs adoption of internet for international interactions. Diffusion of innovation Theory, Technology Acceptance model theory and Social Exchange theory were used in this study. The study used a mixed-method approach to collect data and interpret findings. This study targeted Manufacturing SMEs in Nairobi County, Kenya. Purposive and Random sampling was used to develop the sample for this study. An interview schedule and a survey were used to gather data. Forty-three SMEs were surveyed and the data collected was presented through tables and graphs while thirty SMEs were interviewed and data presented in coded themes. The findings suggested that Kenya’s manufacturing SMEs are still in the experimental stage in terms of adopting internet for internationalization purposes and internet is primarily used in communicating, administrative support and research marketing. This study recommended that SMEs take initiative in embracing internet, collaborate and create network that will help them reach international market and SMEs increased adoption of internet as a tool for reaching international market.