How Firm Size and Firm Age Characteristics Affect its StrategicAbility to Move from Domestic to Foreign Markets

Abstract

The purpose of this paper is to investigate how firm age and size affect the small and medium firm to move from the local to international market. Literature has strongly suggested that the firm age and firm size some of the key factors that influence internationalization of medium sized firms for many developing economies though little research has been done regarding the same for developing economies. An in depth survey was conducted with 73 Kenya Top 100 medium companies targeting the CEOs and/or key executives by the use of a questionnaire instrument. The data was analyzed by the use of Statistical Package for Social Scientists (SPSS) Version 21. Both descriptive and inferential statistics were used to present data. The study found that if Kenyan medium sized firms would sustainably increase the size of their operation, as they age, this would increase theirreadiness to internationalize their operations. They would therefore achieve superior capability to maximize on any opportunity that might arise for doing business in foreign market.The study recommends that the Government of Kenya should provide a supportive environment that would enable medium firmsto grow and overcome the challenges of smallness which is a precursor to internationalization.