Managers’ Perception of the Effect of Business Counterfeiting on the Strategic Growth of Kenya Seed Company

Abstract

Academic discourse has inadequately addressed counterfeiting, specifically its link to strategic growth, leading to ambiguity regarding its impact on strategic growth. This study aimed to fill this gap using the Kenya Seed Company as a case study. The objective of the study was to determine managers' perceptions regarding the impact of business counterfeiting on the strategic growth of Kenya Seed Company. The study employed a case study design, this approach fulfilled the necessity for depth and comprehensive exploration needed to effectively achieve the objective. The study gathered primary data from 9 interviewees, and secondary data from select company records and reports followed by a thorough data analysis through thematic analysis and descriptive statistics. From data analysis, the study found that business counterfeiting adversely affected market penetration, primarily through reputational damage and substitution effects. Additionally, the study found that business counterfeiting impeded the success of diversification by eroding brand integrity and consumer trust. Further, the anti-counterfeit measures placed financial constraints on Kenya Seed Company, limiting resources for crucial innovation and research which is necessary for product development. In conclusion, counterfeits not only impede future growth prospects but also restrict profitability, thereby compromising the viability of strategic growth. Based on these findings, the study suggests several recommendations; the recommendations to Kenya Seed Company include intensifying consumer education initiatives in newer markets, reinforcing the supply chain against counterfeiting, improving corporate governance to minimize corruption and theft and strengthening quality control measures throughout production and distribution. Finally, the study recommends that Kenya seed company should conduct a thorough market assessment before entering new markets, especially those characterized by prevalent counterfeiting. Regarding future research, the study recommended a comprehensive study encompassing the psychological and social factors influencing consumer choices of counterfeit seeds.