Moderating Effect of Marketing Channel Dynamics on the Relationship between Market Entry Strategies and Performance of Multinational Corporations in Kenya
Abstract
The main purpose of this study was to examine the influence of marketing channel dynamics on the relationship between market entry strategies and the organisational performance of multinational corporations in Kenya. The main objective was to determine the moderating effect of marketing channel dynamics on the relationship between market entry strategies and organisational performance. The study employed a descriptive cross-sectional research design. The study established that marketing channel dynamics moderate the relationship between market entry strategies and organisational performance. The study found that market entry strategies and marketing channel dynamics explained 52.1% of the change in organizational performance measured using financial performance indicators. The study also established that market entry strategies and marketing channel dynamics explained 62.3% of the change in organizational performance of multinational corporations in Kenya measured using non-financial performance. The study recommends that marketing channel dynamics should be considered when going international, this will enhance the performance of the organisation. The result's findings contribute to theory development, policy and marketing practice about the effect of market entry strategy and organisation performance coupled with the influence of market channel dynamics on this relationship. Limitations include some respondents being uncomfortable with sharing information on financial performance and the logistical challenges of traversing the country to obtain data, this however did not compromise on study results. The study suggests that there is room for further research by adopting comparative studies approach and using longitudinal designs to get more information from the respondents.
Keywords: Marketing Channels Dynamics, Market Entry Strategies, Organisational Performance
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