Factors Influencing Internationalization of Operations of Kenol Kobil Kenya Company Limited

Abstract

The global market is increasingly becoming popular and gaining importance as a market and a base for internationally active organizations as well as those intending to go international. There was no known study that had been done on factors influencing internationalization of operations in organizations in Kenya, a knowledge gap. This study was a case study. The study also integrated qualitative methods. An interview guide was used to collect the primary data, through talking to respondents or interviewees and recording their responses. The author noted that interviews are of two types namely: face to face and telephone interviews. The data was collected from the top management of KenolKobil. The data was collected from the holders of the following positions at KenolKobil, namely; Chairman & Group Managing Director, Group Exports & Regional Support Manager, Group Mergers and Acquisitions & Regional Support Manager, Group Trading & Supply Optimization Manager. Use of Content Analysis was applied. The collected data was organized, categorised on their themes and relationships between the categories established for easy and accurate analysis. The Company has internationalized its operations in various countries as a result of strategic storage facilities and import economies of scale to cater for increasing demand. To defend or maintain its position in a particular business network, the firm had to become internationalized in its operations. This has been influenced further by government legislation, local market dynamics and international prices as well as competition, globalization, opening up of international markets, firm size and corporate culture of the firm. The firm has realized its competitive advantage by developing mutually supportive interactions with other service firms and their customers. Policy-makers and practitioners could consider introducing initiatives that target resources and assistance to the firms that have the inclination as well as the ability to be exporters. The targets of the support should be the firms that have solid and long term business plan. The firms should pay attention to the domestic market and help them cultivate their customers and market since the brand market potential in domestic markets is much higher than foreign markets. Increased management involvement at all levels as a key driver in helping ramify quality management further across the firm.