Effect of Export Strategy on the Performance of Large Export Manufacturing Firms in Kenya

Abstract

The internationalization of business coupled with globalization has made it necessary for farmers to develop and utilize export market success strategy in a competitive and often chaotic business environments. Exporting is the most popular foreign entry strategy and can become an international learning experience. Since exporting is a risky venture, it is prudent that exporters fully orient their businesses by collecting export market intelligence. Export markets are complicated by the fact that the market environments are dynamic and disruptive in terms of preferences, demand, regulations and other aspects. This study sought to determine the effect of export strategy on the performance of Kenya large export manufacturing firms in Kenya. The study was a cross-sectional survey. The target population was 60 large Kenyan export manufacturing firms which formed the unit of analysis. A questionnaire was used to collect the primary data. Respondents were the company chief executive officer and the head of marketing from each of the firms under study. An average response rate of 96.55% was achieved. The research which adopted both inferential and descriptive statistics used statistical package for social sciences to perform regression and correlation analysis. The findings revealed that the influence of direct exporting on firm performance of large export manufacturing firms in Kenya is significant. The study recommended that on improving export performance (either export sales or export ratio) the export firms should engage on collection of more foreign information and co-operation for the international activities. The study further recommended that large export manufacturing firms’ managers prioritize direct and active engagement with key players in both the export market and the domestic market. Keywords: Export Strategy, Direct Exporting, Indirect Exporting, Cooperative Exporting, Performance, Large Export Manufacturing Firms.