FIRM RESOURCES, INDUSTRY CHARACTERISTICS, AND INTERNATIONALIZATION OF MEDIUM-SIZED EXPORT PROCESSING ZONE COMPANIES IN KENYA

Tanui Kipchumba John; Martin Ogutu; John Yabs; Obara P. Magutu

Tanui Kipchumba John
Martin Ogutu
John Yabs
Obara P. Magutu

Abstract

Business opportunities globally are rapidly increasing the establishment of new emerging
markets which poses challenges of internationalization to Medium-Sized Enterprises (MSEs),
The MSEs has less experience as compared to Multi-National Corporations (MNCs), and thus
must consider a different internationalization growth paths. The interest in regard to the
internationalization of the MSEs as well as their activities have consistently grown majorly in
the nations which are facing some deficit within the balance of payments therefore coming up
with a need to boost international vitality of MSEs with the that multinational establishments
within the future. Although internationalization can serve as a platform, it is a dangerous
endeavor that could lead to significant losses that could threaten the firm's future. Therefore,
greater resources are needed for mitigation of internationalization. The goal of the study was to
ascertain how industry traits affected the relationship between company resources and
internationalization in Kenya's medium-sized export processing zone enterprises. Descriptive
cross-sectional study design was employed in the investigation. 104 firms from the Export
Processing Zones made up the research population (EPZs). The study used a census in which the
entire population was looked at. The study focused on important decision-makers, such as CEOs,
entrepreneurs, or top managers. A closed-ended questionnaire with a five-point Likert scale was
employed to collect primary data. Descriptive and inferential statistics, such as multiple and
hierarchical linear regression analysis, were used in the study. According to the study's findings,
the relationship between company resources and firm internationalization is significantly
moderated by industry characteristics.
Key words: Firm Internationalization, Firms Resources, Industry Characteristics, Medium-Sized
Firms, Export Processing Zone