Effect of equity modes of market entry on performance of multinational insurance companies in Kenya
Date
2020
Authors
Karissa, Gloria K.
Journal Title
Journal ISSN
Volume Title
Publisher
Strathmore University
Abstract
Globalization has made it easy for companies to do business in other jurisdictions and this has been made possible using various market entry modes leading to an influx of multinational organizations into the developing nations cutting across various sectors. The decision to enter a foreign market and the mode of market entry is very important as it will determine the failure and success of an organization with several studies being done on organization performance and the extent to which market entry strategies have played a part. These studies have however been limited to various sectors such as manufacturing, private equity firms with some being done in other countries and not Kenya. This study intended to examine the effect of equity modes of market entry strategies on the performance of insurance companies in Kenya and was limited to multinational companies within the Kenyan insurance industry. It mainly sought to find out whether the type of market entry strategy is chosen by a particular multinational has an effect on the performance of the company and the type of effect it has. The research focused on the resource-based view theory and the balanced scorecard framework. The investigation used a descriptive research design with senior management from the 15 multinational insurance companies in Kenya as the unit of observation. Data was collected by means of a structured research questionnaire. The pilot results indicated that the study constructs were reliable for explaining the research problem. The data collected was examined in detail using descriptive and inferential statistics with results presented in tables and graphs. An 83% response rate was obtained. The study recommends the need for insurance firms to leverage on strategic alliances and direct investments to improve their performance. Further to this, insurance firms ought to improve their joint venture efforts in order to foster their competitiveness.
Description
A Thesis submitted in partial fulfillment of the requirements for the award of the Degree of Masters of Business Administration at Strathmore University Business School
Keywords
Equity modes, Multinational insurance companies, Private equity firms