How Strategic Market Entry Modes Influence Internationalization of Small Medium Enterprises in Kenya

Abstract

The purpose of this paper is to establish how strategic market entry modes influence firm’s ability to expand from the local to the international market. The study looked at how different entry modes determine the level of firm internationalization. Some of the strategic entry modes which medium sized firms have used include exporting, direct investment, licensing and franchising, outsourcing and subcontracting, collaborations and partnerships. The study targeted CEOs and senior managers for 100 Top Medium firms in the category of 2012. Structured questionnaire was administered and both descriptive and inferential statistics were used. The findings revealed that though the mode of entry affects the firm’s ability to internationalize, there are multiple factors that should be considered when deciding to go international as opposed to only one or a few.