Determinants of initial export market participation: (an empirical study on the internal-proactive and Internal-reactive factors among micro and small enterprises in the commercial craft sector in Kenya)

Abstract

This study sought to investigate the determinants of initial export market participation among MSEs in the commercial craft sector in Kenya. This was motivated by the available evidence that MSEs play a critical role in the economy of most developing as well developed nations in terms employment creation occupation and subsequent wealth creation. The study specifically sought to determine the effect of internal-proactive factors on initial export market participation among MSEs in the commercial craft sector in Kenya. To investigate the effects of internal-reactive factors on initial export market participation among MSEs in the commercial craft sector in Kenya. The study adopted the stage theory and the factor proportions theories of internationalization and used a mixture of explanatory and descriptive research designs on a target population of 140 MSEs in the commercial craft sector in Kenya registered with EPC at the time of the study. Primary data was collected by use of a semistructured questionnaire and the data was analyzed by use of measures of central tendencies, Factor analysis (for data reduction) and multiple regression analysis (to establish the variable relationships). The findings show that initial export market participation in Kenya MSEs is influenced significantly by internal proactive factors, (with some variables depicting negative significant skew, while others provide positive skew effect). The study concludes that to enhance export market participation and ensure a vibrant and competitiveness in the global marketplace, these internal proactive factors need to be continuously scrutinized with adequate attention. The study recommends that the governments and the relevant agencies need to collectively lobby and develop export sensitization programmes anchored on appropriate policies intended to boost MSE export market participation