Factors Influencing the lntemationalisatlon Process of Kenyan firms in the Plastics Manufacturing Industry: A Case Study of Firms in Nairobi

Abstract

Internationalisation is the process through which a firm increases its involvement in international operations, which requires adapting the firm's strategy, resources, structure and organization to international environments. Kenyan firms have been internationalising at an increasing rate in the last 10 years in virtually all production industries. Despite many firms going international little is known about the process through which they internationalise and even less on the factors that influence their process of internationalisation. The objective of the study was to determine the factors that influence the process through which Kenyan firms in the plastic manufacturing sector internationalise. Studies have identified age and size of the firm, personal characteristics of the owners and/or management, the product or industry, technology and research and development and psychic distance as factors that internationalisation process of the firm. The study used a conceptual framework that reflected expected behaviour of the firm with regard to internationalisation against which observed outcomes of the firms studied were matched. Where predicted outcomes were found then it was suggested that that the theoretically based explanation was appropriate to explain the findings of the study. The study concludes that the size of the firm, the personal characteristics of the owners and/or .• the managers, uniqueness of the product, psychic distance and technology, research and development influence the process of lnternatlonallsation- of Kenyan firms in the plastic manufacturing sector while age and the degree of product customisation did not play a significant role in influencing the internationalisation process.