Export Strategy, Market Orientation, Market Dynamism and Performance of Large Export Manufacturing Firms in Kenya

Abstract

The globalization of business combined with its internationalization has made it essential for companies to design and implement export market success strategies in order to compete successfully in settings that are highly competitive and often chaotic. The most common approach to entering a foreign market is exporting, which may also serve as a valuable learning experience on a global scale. It is advisable for enterprises who export their goods or services to thoroughly orient their operations by gathering export market knowledge. This is because exporting is a high-risk endeavor. The dynamic and disruptive nature of market settings in terms of tastes, demand, laws, and other factors makes export markets more difficult to navigate. This study set out to examine how market volatility can impact the connection between export strategy and firm performance for the biggest export manufacturing enterprises in Kenya. The effect of market orientation was also evaluated, along with its relationship to export strategy and firm performance. The Heckscher-Ohlin theory served as the foundation for this investigation, with backing from the Contingency Theory and the Dynamic Capability theory. The study used a positivist approach. The study was conducted as a cross-sectional survey. Sixty of Kenya's leading export-manufacturing companies were selected as the target audience. In this case, we used the export manufacturer as our unit of analysis. The main data came from a questionnaire that was administered to all participants. The CEOs and marketing directors of the firms under investigation all took part in this study as responders. We were able to get a 96% response rate. In addition to using both inferential and descriptive statistics, the study also included correlation and regression tests. The findings demonstrate that the overall performance of Kenya's leading export manufacturing enterprises is significantly impacted by direct exporting. The research demonstrates that using direct exporting as a company strategy improves export manufacturing performance. The findings also demonstrated that major exporting manufacturing firms' performance is related to both their export strategy and their market orientation. In addition, the findings indicate that market volatility dampens the link between export strategy and production volume for the world's top export producers. Export strategy, market orientation, and market dynamism all had a bigger impact on the success of significant export manufacturing firms than export strategy alone. This was determined by contrasting the combined impact of export strategy, market orientation, and market dynamism with the impact of each factor individually. The study's findings suggest that export manufacturing companies can improve their export performance by working more closely with relevant stakeholders and focusing on expanding their knowledge of foreign markets. The study's results suggest that managers of large exporting manufacturers should place a premium on communication and collaboration with key domestic and international market players. Managers of businesses must, therefore, constantly assess whether or not their results are improving. Without collecting and using the relevant data in advance, the effects of optimizing a company's performance may be unexpected, especially for those organizations operating in more volatile marketplaces. Organizational leaders are tasked with maintaining their company's competitive edge by boosting its responsiveness to changes in the market and its capacity to adapt to new circumstances. The findings of this research urged the use of longitudinal research methods and the inclusion of micro, small, and medium-sized businesses in future studies. One potential drawback of using a questionnaire to collect primary data is that it might be evaluated subjectively.The study's cross-sectional design precludes drawing any firm conclusions about the nature of the relationships between the variables. It is suggested that the service sector be the focus of future study, and that a longitudinal rather than cross-sectional methodology be used.