Challenges Of Internationalization Experienced By Barclays Bank Of Kenya
Globalization has rendered international expanding activities increasingly important for the survival, growth and success of modern firms. Simultaneously, the banking industry has been undergoing major consolidation in recent years, with a number of global players emerging through successive mergers and acquisitions. Competition is generally considered a positive force in most industries; it is supposed to have a positive impact on an industry’s efficiency, quality of provision, innovation and international competitiveness. However, this issue has always been controversial in banking, as the perceived benefits derived from increased competition have to be weighed against the risks of potential instability. In the process of internationalization banks face certain challenges in the process of internationalization. The study reviewed the entire literature related to internationalization of firms. It identified factors that are at play during the process of internationalization. Focus was given to major obstacles of internationalization experienced by firms as they make forays into the international markets outside their local indigenous countries. By using a case study of Barclays bank Kenya, the study targeted the senior-level managers since they are mainly involved in internationalization process and are likely to have the information on the challenges faced during the process. The data was obtained from the various management team members belonging to different departments, and it was compared against each other in order to get more revelation on challenges of internationalization experienced by Barclays bank of Kenya. The results indicate that the main challenges that affected the process were culture, political, legal and regional trading blocs. The Board and senior leadership, as custodians of Barclays’ reputation, should promote and safeguard the trust in which it is held. They should state clearly Barclays’ purpose and report regularly on how it is fulfilling that purpose. They should promote standards that support Barclays’ ambition to be seen as a leader in business practices among its peer institutions and multi-national corporates generally. The study recommends a further research to be done on the role or impact of foreign banks in the development of Kenya.