Market entry strategies and performance of multinational corporations in kenya

Abstract

The purpose of the study was to examine the relationship between market entry strategies and organisational performance of multinational corporations in Kenya. The specific objective is to establish the relationship between market entry strategies and organisational performance of multinational companies in Kenya. The study employed descriptive cross-sectional research design. The study established that market entry strategies explained 43.1% of the variance in organizational performance of multinational companies measured using financial performance parameters and 52.5% of the variance in organizational performance measured using nonfinancial parameters. The hypothesis that there is a significant relationship between market entry strategies and organisational performance was therefore supported. The study recommends that multinational corporations should carry out research on the market entry strategies before venturing into international market. This will ensure that they use the appropriate market entry strategy to enhance their performance. The study also recommended that the management evaluate the factors influencing the choice of market entry modes in order to choose the best alternative. The results makes a contribution to theory development, policy and marketing practice in relation to the effect of market entry strategy and organisation performance The limitation of the study is that it used top management as the respondents, may be if other cadre of employees were studied they could have contributed to more exhaustive results for generalization, this however did not compromise on study results. Therefore, the study suggests that there is room for further research incorporating a large population approach, using longitudinal designs and using group discussion to get more information from the respondents.