Influence Of Foreign Market Entry Strategies On Export Performance Of Epz Firms In Kenya

Abstract

The objective of the study was to determine the influence of foreign market entry strategies on export performance of EPZ firms in Kenya. The research was conducted using descriptive cross sectional survey design. The population of interest was all the EPZ firms in Kenya. There are 113 firms in the three EPZ zones in Kenya. Thus the target population was 113 EPZ firms in Kenya. The researcher chose a representative sample of thirty-five (35) firms, which was 30% of the population. The sample was selected using the stratified sampling technique where the population was divided into subgroups based on zone and location. The study used an open ended questionnaire as the main instrument of collecting primary data. The data from the field was checked to ensure completeness, consistency and accuracy. The data was then coded and tabulated to facilitate data analysis. The researcher analyzed the data and presented the results in form of percentages, frequencies, graphs and tables. In addition, the researcher used descriptive statistics such as the mean and standard deviation to also present the data. The response rate of 86%. The study found that entry into the foreign market gave the firms a chance to relaunch themselves after many years of absence. The study found that the firm has created value for its customers through quality products and services as a results of foreign market entry strategies. The study further found that the firm’s market share has improved due to increased marketing activities as a result of foreign market entry strategies. The study concluded that the firms first used joint ventures or strategic alliances strategy. The study concluded that the strategy chosen to enter the foreign market was very effective. The study recommended that the EPZ firms should critically analyze the various strategies at their disposal in entering a new market before making decisions on how to enter the selected market. Market entry strategy plays a very important role in determining the successfulness of the multinational corporations on the local market.