| dc.description.abstract | The aim of this research was to study the process and challenges involved in
internationalization of Equity bank limited. The theory of internationalization assumes
that the firm has developed a source of competitive advantage in its domestic markets. If
this advantage cannot be efficiently exploited within the domestic market without undue
transaction costs, then the firm will seek to move outside of that market and seek to
exploit its sources of advantage elsewhere. The process of internationalization comprises
of strategy formulation and implementation. There is enough evidence in and common
consensus in literature that although strategy implementation is a challenge to many
organizations, it is strategy formulation that continues to receive more attention. Strategy
implementation is the process that turns plans and strategies into actions to accomplish
objectives. For effective strategy implementation, the strategy must be supported by
decisions regarding the appropriate strategy formulation, organizational structure, culture
and adaptation to changes in the environment. All interested parties should cooperate in
the process since they play a leading role in implementation. It is evident that
internationalization is a process that requires thorough research and analysis for
sustainability. This study highlights the process of internationalization. This was a case
study design where primary and secondary data were collected. Primary data was
collected using interview guide whereas secondary data were collected from the strategic
plans and financial reports. The data obtained was analyzed using content analysis. The
findings indicate that the potential for profitability and growth in the target region were of
great consideration before venturing into a foreign market. The findings also revealed that
there were political, cultural and security risk that were inevitable. Other than the risks,
strategy formulation, organizational structure, culture and dynamic environment were
found out to be the challenges to the process. The findings from the study suggested that
employee participation in strategy formulation was important for a flawless
implementation. Further, the findings indicated that the bank brand and image was the
propelling factor in venturing to the regional market. In spite of the challenges to
internationalization, the bank was still the leading in establishing subsidiaries in the
region. The study was limited by non responses, financial and time constraint. It suggests
that similar study should be carried out in other banks and financial institutions. | en_US |
