PERCEPTION REGARDING INTERNATIONALIZATION CAPABILITY: A CASE OF ARCHITECTURAL CONSULTANCY FIRMS IN KENYA

Abstract

The purpose of this study was to establish how architectural consultancy firms perceive the effects of the external business environment and their internal environments as affecting their internationalization capability. The specific objectives were to determine the architectural firms' perceived effect of internationalization drivers on their ability to exploit international business opportunities and identify the firms' characteristics that may be related to their perceived effect of internationalization drivers on their internationalization capability. The researcher chose to investigate the phenomenon of internationalization among architects because architecture is one of the oldest professions. It is therefore necessary to establish the professions preparedness to respond to external environmental developments such as liberalization and globalization. The study used a sample survey research design. Simple random sampling was used to select respondent firms from the target population. Data were collected using a 10-point Likert-type scale. The mean scores of the factors that affect a firm's internationalization capability were an indication of the perception index. Regression and correlation analyses were used to analyze the data. The findings of the study indicated that the firms perceive the external business environment to have a stronger effect on their internationalization capability than their internal environments. Foreign government policies and a partner's gender were perceived to have the strongest and the weakest effect on internationalization capability respectively. While firm-size was positively correlated with internationalization capability and had a significant impact on the firms' ability to pursue opportunities in other countries, experience was neither correlated with nor did it have any impact on the way firms perceive the effect of the environment on their internationalization capability. In order to enhance the firms' internationalization capability, it was recommended that architects need to improve their management skills and be proactive in searching for information on other markets. The Kenya Government needs to work closely with the firms as it addresses their concerns, which include availing information on other markets and accessibility of resources. Comparative studies need to be carried out with the aim of establishing how the perception regarding internationalization capability varies among soft service providers, hard service providers and manufacturers.