The Influence of Firm Capabilities on the Internationalisation and Performance of Publicly Quoted Companies in Kenya

Abstract

This research is based on an integrated theoretical approach. Internationalisation theory is integrated with the resource based view, and a theoretical model is developed that examines the influence of firm capabilities on the internationalisation and international performance of publicly quoted companies in Kenya. The study specifically considers the effect of organisation innovation intensity, knowledge capability and adaptive capability on the degree of internationalisation and performance. The proposed model is tested based on data drawn from a survey of internationalised publicly quoted companies in Kenya. The results show that firm capabilities have a positive influence on the degree of internationalisation and performance of a firm. The research provides implication for management practice and policy and highlights areas for future research.

Key words: Firm capabilities, Internationalisation, Performance, Publicly Quoted Companies, Kenya.