Firm Resources as Determinants of Internationalization of Medium Sized Firms; Evidence FROAM Kenya

Abstract

The purpose of the study is to assess the effects of firm resources on the internationalization of medium firms taking evidence from Kenya Resource Based View (RBV) is the main theoretical framework that has informed the study. According to Barney (1991), the ownership of the unique resources is assumed to be the reason why Medium firms in the same Industry and location respond differently to export stimuli; one initiating export business and is in a position to meet its export orders while another similar one is not. The argument is that the Internal resources tangible or intangible are the main explanatory determinant of firm internationalization. Kenya Top 100 medium firms formed target population. The results of the study indicate that Medium firms that seek for internationalization should invest in developing rare and unique resources which are not imitable. The findings reveal that internal resources tangible or intangible are the main explanatory determinant of medium firm internationalization. The results of the study agrees with a lot of the existing literature on SMEs internationalization on that ownership of the unique resources is a major reason why firms in the same industry and location responds differently to export stimuli. To overcome the challenges of smallness, medium firms have to leverage on knowledge and network resources for they are rare, unique and are not imitable.