Effects of Globalization Strategies on Company Financial Performance of Kenyan Companies in Comesa Region

Abstract

In recent times, the field of economics has widely preoccupied itself with the discourse of globalization strategies and their derivatives. Many organizations are therefore whirling their rethinking around and towards ensuring that they lag none of their intentions upon any opportunity that rejuvenates therein. Upon then, many have contributed to the existence of quite a wide array of literature in regard to aspects of globalization strategies and the inherent benefits. However, in spite of this high edge knowledge existence, there is scarcity on the same pertaining to the effects of globalization strategies on financial performance of Kenyan companies operating in the COMESA region. This study focus and attempts to fill this gap by using description research design. Data shall be collected from the departments of finance and operations/business development by use of a well-structured questionnaire and a study guide. By use of census sampling technique, the study shall target 43 Kenyan companies operating in the COMESA region. Data obtained shall be well coded and analysed by the use of Statistical Package for Social Sciences (SPSS) Version 21.0 and presentations established appropriately. The study concluded that companies within COMESA region explored different globalization strategies, to hence their financial performance in the region. Financial institutions such as bank has highly invested into technology as a way to gain competitive advantages over others, introduction of automatic teller machine and internet banking also most of the institutions have involved in merger and acquisition in order to expands their operation in other regions where they do not exist. The study concluded that as a results of exploring globalization strategies such as countertrade, merger and acquisition, foreign direct investment, import and export, franchising, licensing, joint venture and technology, companies have gain financial performance by increasing their scale of production due to competitive advantages.