Factors influencing exporting firms in EPZ Kenya to increase their efficiency

Abstract

There is a need for management of exporting firms to cope with change, they must effectively processes and use the right strategy to arrive at major decisions to bring about change, management must work on the efficiency of the mechanisms utilized to implement management decisions. The study was set out to determine factors influencing exporting firms in Kenya to increase their efficiency. The study used both qualitative and cross-sectional survey key information relevant to the subject matter will be obtained from the targeted exporting Firm in Kenya with particular interest on describing efficiency in export. The target population included exporting firms in Kenya. The study used stratified random sampling procedure to select a sample that represents the entire population. Sampling stratum was based on the number of export firm registered with the export process zone authority of Kenya. This includes manufacturing firms and service providing firms. To ensure an equal distribution of respondents, the study utilized 12.5% of the population. The total respondent firm was 14 exporting firms in Kenya; one respondent was picked using systematic random sampling in each of the 14 exporting firms in Kenya. Primary and Secondary data were used to collect both quantitative and qualitative data. The data was collected through a structured questionnaire. Secondary sources of data were obtained from the company records. Data was then analysed using descriptive statistics. The descriptive statistical tool was used to help the researcher to describe the data with interpretation in percentages; frequencies mean score and standard deviation. The findings were presented using tables and graphs for further analysis and to facilitate comparison. This generated quantitative reports through tabulations, percentages, and measure of central tendency. The study concluded that the benefits derived from exporting products were reduced dependency on domestic market, increased market competitiveness, increased diversification and increased earnings. Further, the study concluded the factors that were perceived to influence efficiency of exporting firms in Kenya and other countries were as follows a motivated work force, Government motivated foreign trade policies, quality management team and effective distribution channels. Due to time and cost constraints, the study was limited itself to exporting firms that are concentrated within Nairobi County. It would have been appropriate to collect data from all the exporting firms across the country in order to draw more conclusive and detailed results. The study recommends that the Government of Kenya should formulate policies to reduce taxes imposed on export goods this will encourage farmers and small and large scale manufacturers to venture into the international markets to reap more returns. The study recommends that future researchers should development a time-series database and testing of the relationship between the factors that enhance efficiency of exporting firms in a longitudinal framework should provide more insight into probable causation.