Strategic Responses of Kenyan Large Manufacturing Firms Operating Within East Africa to Opportunities and Challenges of Regional Integration

Abstract

Firms are environment dependant and changes in the environment shape opportunities and challenges facing the organization. The environment in which the firm operates helps it define its objectives and develop competitive strategies for survival. The manufacturing sector in Kenya has traditionally been relatively protected. It has been subject to heavy regulation, much of which has favored large firms. However, this sector has been underdeveloped and manufacturing exports in particular labor-intensive goods have stagnated. This study investigates the Strategic Responses of Kenyan manufacturing firms to opportunities and threats of regional integration and the challenges faced in the implementation of these strategies. The study outlines strategies employed by Large Manufacturing Firms in managing current environmental challenges. The future of the manufacturing industry will depend on how well these firms are able to adjust their business operations to the turbulent environment.

The study targeted 31 Large Manufacturing firms in Kenya operating within the East African Region but managed to get responses from 23 firms. This represented a 74% response rate. Data was collected through questionnaire method. Questionnaires were administered through personal interview and drop and pick later method. Drop and pick later method was used where the respondents were away or could not answer the questionnaire immediately due to time constrains. Data was captured using SSPS and facts analyzed to give conclusions.