Competitiveness of global integration strategy among multinational corporations in Nairobi, Kenya

Abstract

This study first sought to determine if MNCs operating In Nairobi have adopted global integration strategy as part of their operations. Secondly the study was to establish whether the MNCs have competitive advantage. The study sought to establ ish the relationship of global integration strategy to competitiveness of MNCs. The population of the study comprised of 40 MNCs operating in different sectors in Nairobi. Structured questionnaires focusing on meeting the objectives were delivered physically to the MNCs sampled. The methodology used to analyze the data was descriptive statistics by rating the importance of the variables studied using mean, standard deviation and regression analysis. The results indicated that the MNCs sampled have adopted global integration strategy with some degree of autonomy. This study deduced that the degree of standardization of goods and services across countries and resource distinctiveness committed to host country operations has been seen to be positively associated with global integration. The extent to which local business units are autonomous to worldwide operations was seen to be a major influence in how the firms have some degree of autonomy which is also a critical factor that is considered especially to make the firm more competitive. As a result of the research findings it was recommended that MNCs appreciate the global integration strategies employed and what form would make it competitive for them at the local level. Further MNCs should have a clear understanding of the type of global integration strategy they have adopted and how this affects their degree of autonomy or local responsiveness so that they can take steps to make their operations more competitive.