Influence of Entrepreneurial Orientation on Kenya’s Manufacturing Firms Operating under East African Regional Integration

Abstract

Entrepreneurial Orientation is a significant influencer of firm performance more so for manufacturing firms operating under globalization, internationalization and regional integration regimes. Regionalization is the coming together by nations as a means of attaining socio-economic and political goals by nations, which cannot be achieved in isolation. Regionalization results in expanded markets, characterized by increased number of competition, and increased market size. This therefore, exerts greater pressure on manufacturing firms to regionalize; this is a challenge to firms accustomed to operating under a domestic market set-up.

To overcome the challenges associated with regionalization, eminent scholars in other parts of the world have recommended, that, manufacturing firms adopt Entrepreneurial Orientation as a solution to the challenges brought about by regionalization. It is on this basis that the study sought to determine the influence of entrepreneurial orientation on the performance of manufacturing firms in Kenya operating under the East African Community regional integration.

The study findings revealed that performance of Kenya’s manufacturing firms operating under the East African Community regional integration, are significantly influenced by entrepreneurial orientation, in terms of Sales, Profits and Employment as measures of firm performance. The significance influence is more pronounced in terms of Sales for manufacturing firms which are integrated or operate within the regional integration. The study concluded that Kenya’s manufacturing firms intent on enhancing their performance urgently need to adopt entrepreneurial orientation and recommends that further study be undertaken in other areas besides entrepreneurial orientation as an influencer of manufacturing firm performance.

Keywords: Entrepreneurship, Entrepreneurial Orientation, Competitiveness, Firm Performance, Regional Integration.