An Analysis of the Internationalization Process of Large Manufacturing Firms in Kenya

Abstract

Increased internationalization of market activities has resulted from the ongoing integration and convergence of world economies. The competitiveness of Kenya's manufacturing sector is a top priority because of its role in the country's economic growth. According to experts, Kenya's manufacturing sector is expected to play an important role in the country's economic development, but little is known about how these businesses use competitive tactics. The objective of this study was to analyse the internationalization process of large manufacturing firms in Kenya. The current study embraced the use of experimental research design. The target population for the current study was the 118 large scale manufacturing firms that have internationalized their operations and licensed by KAM as of 2020. The analysis unit was the Kenyan large-scale manufacturing companies that have internationalized while the unit of observation was export liaison officer of each respective company. Primary data was fully relied upon and the collecting of the data was via structured questionnaires. Descriptive analysis which involves computation of mean, mode, median, standard deviation, and percentages were carried out to determine frequencies and percentage distributions. The researcher also used factor analysis a technique. The results indicated that the large manufacturing firms do indeed practice internationalization process through export mode contractual entry mode and investment entry mode. From the study findings the study recommends that the management of firms in Kenya and especially those in the manufacturing firms should adopt strategies that will allow them to move to the internationalization process. The study also recommends that the management of firms in the manufacturing sector as well as in other sectors that are seeking to expand to the international market should formulate polices and guidelines that will lead the firms towards the internationalization process.