EFFECT OF MARKET ORIENTATION ON THE RELATIONSHIP BETWEEN EXPORT STRATEGY AND PERFORMANCE OF LARGE EXPORT MANUFACTURING FIRMS IN KENYA
Abstract
Objective of the study: The objective of the study was to establish the effect of market orientation on the relationship between export strategy and performance of large export manufacturing enterprises in Kenya.
Research Methodology: The target population was 60 large Kenyan export manufacturing firms which formed the unit of analysis. A questionnaire was used to collect the primary data. Respondents were the company chief executive officer and the head of marketing from each of the firms under study. An average response rate of 96.55% was achieved. The research which adopted both inferential and descriptive statistics used statistical package for social sciences to perform regression and correlation analysis.
Results and findings: The results showed that the influence of export strategy on performance of large export manufacturing firms is partially mediated by market orientation.
Conclusion and Recommendations: The study concluded that market orientation predicts both export strategy and success of large export manufacturing businesses. The link between export strategy and performance of large export manufacturing companies is not fully but partially mediated by market orientation. The study recommends that the large export manufacturing firms’ management prioritize their customer relations by investing more in innovation to produce more products which incorporate customers’ preferences and tastes. Investment in ensuring that firms are committed to exporting, that they stress the significance of export market orientation in their unit and across the units, and that the firm's training systems support export market oriented activities are all factors to consider for firms seeking to develop their export market orientation.
Keywords: Market Orientation, Export Strategy, Performance & Large Export Manufacturing Firms
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