The internationalization of equity bank Kenya Limited
Korir, Edwin K
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The aim of this research was to study the process and challenges involved in internationalization of Equity bank limited. The theory of internationalization assumes that the firm has developed a source of competitive advantage in its domestic markets. If this advantage cannot be efficiently exploited within the domestic market without undue transaction costs, then the firm will seek to move outside of that market and seek to exploit its sources of advantage elsewhere. The process of internationalization comprises of strategy formulation and implementation. There is enough evidence in and common consensus in literature that although strategy implementation is a challenge to many organizations, it is strategy formulation that continues to receive more attention. Strategy implementation is the process that turns plans and strategies into actions to accomplish objectives. For effective strategy implementation, the strategy must be supported by decisions regarding the appropriate strategy formulation, organizational structure, culture and adaptation to changes in the environment. All interested parties should cooperate in the process since they play a leading role in implementation. It is evident that internationalization is a process that requires thorough research and analysis for sustainability. This study highlights the process of internationalization. This was a case study design where primary and secondary data were collected. Primary data was collected using interview guide whereas secondary data were collected from the strategic plans and financial reports. The data obtained was analyzed using content analysis. The findings indicate that the potential for profitability and growth in the target region were of great consideration before venturing into a foreign market. The findings also revealed that there were political, cultural and security risk that were inevitable. Other than the risks, strategy formulation, organizational structure, culture and dynamic environment were found out to be the challenges to the process. The findings from the study suggested that employee participation in strategy formulation was important for a flawless implementation. Further, the findings indicated that the bank brand and image was the propelling factor in venturing to the regional market. In spite of the challenges to internationalization, the bank was still the leading in establishing subsidiaries in the region. The study was limited by non responses, financial and time constraint. It suggests that similar study should be carried out in other banks and financial institutions.