Internationalization strategies used by small and medium enterprises in Kenya

Abstract

This study sought to investigate the process of internationalisation strategies pursued by Kenyan SMEs. The study also was aimed at establishing how business strategies interact with and impact upon the internationalisation decisions of SMEs. Thus the research therefore was to find out strategies used by Kenyan SMEs firms in internationalisation. The research focused on small and medium enterprises. A review of literature to establish if similar studies had been carried out in the past. A structured questionnaire was used too collect the relevant data which will be used to summarize the findings and draw conclusions. The respondents responded positively and the data collected was used to draw meaningful conclusions Descriptive statistics such as frequency distribution, percentages, and means were presented using tables and graphs. Qualitative data from open questions was analysed through narrative analysis and presented through prose. The study established that small and micro enterprises used exporting and franchising as a methods of entering the foreign or export market. In relation to the most popular process used, the study also concluded that the respondents approached internationalisation of their operations using process nine. The study also concluded that the small and micro enterprises used the strategy of price below competitors; this strategy is likely to work out properly because most businesses compete on the prices.The study also established that among the back up after sales services, the majority of the respondents gave warranty to their customers, free delivery to their customer after sales. There was no dedicated team involved in research and development, this was mainly because, the sample of businesses chosen were mainly small, they were therefore not able to have a dedicated team of researchers. The study concluded that a deeper insight into the activities of internationalisation by small and micro enterprises ought to be undertaken adequately. Specific areas of research should revolve around the challenges experienced in international market and the strategies employed in dealing with the challenges