Firm-resources as entrepreneurial determinant and performance of manufacturing Small and Medium (SMES) foreign firms investing in Kenya

Internationalization is a strategy for achieving firm growth and for generating wealth by means of expansion into the new markets. The purpose of this paper was to examine the entrepreneurial firm resources and their effects on foreign small medium enterprises within the manufacturing sector in Kenya. The study is a descriptive survey that sought to explore the phenomenon foreign direct investment (FDI) among SMEs. It was conducted in Kenya within the manufacturing sector. The population of the study was drawn from the Export Process Zones within the country through a combination of stratified sampling and purposive sampling. Data was collected by use of questionnaires that were administered to managers of the firm that qualified to form the sample. Both qualitative and quantitative data was collected. Qualitative data was analysed through descriptive statistics that were used to analyse all characteristics of the firm variables so as to appropriately describe and summarise the data.

The resources considered in this study included technological, human, financial and organisational resources. Results show that financial and technology resources are significant and positively related to performance. The study recommends that corresponding inputs should be increased for firms in order to pave way for further internationalization.