EFFECTS OF INTERNATIONAL MARKET DEVELOPMENT ON ORGANIZATION PERFORMANCE AT IWAYAFRICA LIMITED
Lilian Omwanda - Master of Business Administration, Jomo Kenyatta University of Agriculture and Technology, Kenya
Dr. Gladys Rotich - Jomo Kenyatta University of Agriculture and Technology, Kenya
ABSTRACT
International market development strategy is one way to ensure that products and services that are made find their intended clients. At iWayAfrica their performance has suffered calling for the need of strategies in market development. The study’s main objective is to establish the effects of international market development on organization performance at iWayAfrica Limited. Specifically, the study examined how strategic alliances, subsidiaries operations, quality management system and pricing affect performance at iWayAfrica Limited. The study was anchored on the internationalization theory, transaction theory, theory of comparative ownership advantage and the theory of competitive advantage. This study adopted descriptive research design in carrying out the survey. This study covered iWayAfrica East African Offices which are headquartered in Kenya. The respondents include all employees at iWayAfrica Limited because of their involvement in the implementation of international market development. The study targeted population was 87 employees at iWayAfrica Limited and a census was used covering all the 87 employees. The study used questionnaire as the research instrument in collecting primary data. The data collected from the field was analyzed using descriptive statistics where means, frequencies and percentages were obtained and multivariate regression was done. The study findings were presented in tables and charts. The findings of the study indicated that subsidiary operations had significant effect on organizational performance where p=0.000<0.05. Pricing had significant effect on organizational performance with p value 0.002<0.05. However, strategic alliances (p=0.166) and quality management (p=0.051) all had insignificant effect on organizational performance. The study concludes that alliances are agreements between or among firms to pursue joint objectives through coordination of activities and sharing of resources. Strategies should influence the evaluation of the degree of success of a foreign subsidiary. Joining TQM and marketing would require changes in the way that marketing is thought of and organized. Price was one of the 5P’s -Product, Positioning, Place, Promotion and Price in the marketing mix. The study recommends that as firms form strategic alliances they should always ensure that the alliances remain effective. There is need by the parent company to allow the subsidiary freedom to localize some of the strategic performance options. Management commitment to quality need to convey the attitude, idea and actions that total quality management implementation to receive a higher priority in the organization. The management of firms should clearly understand that pricing plays significant role in enhancing organizational performance and therefore proper care should be exercised when dealing with pricing decisions.
