Entry Strategies Adopted by Multinational Manufacturing Companies in Kenya
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Date
2012Author
Mutambah, Elizabeth Wanjiru
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
The focus of the operations of multinational corporations is on the coordination of the
allocation of resources in its international operations in order to minimize production
cost and maximize revenue. This research investigated the entry strategies adopted by
multinational manufacturing companies in Kenya. The objectives of the study were to
determine the entry strategies adopted by manufacturing multinational companies in
Kenya and to determine the extent to which entry strategies affect performance.
This study adopted a survey design in the investigation of the entry strategies adopted
by multinational manufacturing companies in Kenya. The study adopted a census
approach and all the 45 companies which are involved in large scale manufacturing in
Kenya were selected from the KAM Directory as at 31st July 2010. The study used
both primary and secondary data.
The study found out that the factors that lead a company to enter into international
business can be divided into either external (environment specific) and internal (firm
specific). More favorable cost levels were found to be influencing the firm’s decision
to enter the Kenyan market to a great extent. Wholly owned subsidiaries was used as
the main entry strategy to a very great extent
It can be concluded that the decision criteria for the mode of entry depends on
socioeconomic characteristics, political and legal characteristics, financial conditions
and consumer variables. Future research studies can examine how capital of
multinational companies influences the entry strategy of the multinational company.
Studying the past individual and shared experiences of managers can be fundamental
in understanding a firm’s current entry choices.
Sponsorhip
University of NairobiPublisher
School of Business