Effects of internationalization strategies on the organizational performance of emerging multinational enterprises in Kenya

Abstract

The internationalization of multinational corporations from emerging markets is a growing phenomenon in international business. Yet, their expansion into developing and developed markets remains sparsely explored in international business research. Empirical evidence of factors influencing their performance in these developing markets is limited. Accordingly, this study examines the effects of internationalization strategies on the performance of emerging multinational enterprises in Kenya. The specific objectives were to: (1) assess the influence of the amalgamation strategy, (2) examine the effect of the ambidexterity strategy, and (3) evaluate the influence of the adaptability strategy on the organizational performance of emerging multinational enterprises in Kenya. The study was anchored on the Springboard Theory of International Business and the Balanced Scorecard framework of organizational performance. A postpositivist research philosophy and a descriptive research design were adopted. The target population was 213 multinational corporations from which 47 emerging multinational enterprises headquartered in Nairobi County represented the study unit of analysis. The purposive sampling method was used, targeting 3–5 top-level managers per firm, resulting in a sample size of 235 respondents. Data collection was carried out using a structured questionnaire, which was pretested for reliability and validity. The results indicated that both ambidexterity and adaptability strategies had a significant positive impact on organizational performance, whereas the amalgamation strategy demonstrated no statistically significant effect. The study concludes that ambidexterity and adaptability strategies drive success for emerging multinational enterprises in Kenya. The study recommends policies to support talent development in meeting emerging multinational enterprises’ human capital needs and implementing intellectual property reforms to foster innovation. For practitioners, emerging multinational enterprise managers should prioritize market-specific product design and leverage local resources, technical expertise and natural assets to establish themselves in developing markets such as Kenya.