Effect of Product Standardization on Performance of Multinational Corporations
DOI:
https://doi.org/10.53819/81018102t2530Abstract
Multinationals Corporations invests across the borders either as owner’s equity or venture capitalists. Over years they have invested in Kenyan market with immense success, others have attempted to enter the market with miserable results. Dismal performance of Multinational Corporations (MNCs) may pinpoint their failure to manage product strategy. The study’s main objective was to establish the effect of product standardization on performance of multinational corporation. The study used descriptive research design. The research intended to obtain data from 56 Multinational Corporations within the Nairobi environ the actual respondents were 44 while 12 did not respond representing a response rate of 78%. Primary data was obtained from the questionnaire that was administered and answered by financial and marketing managers. Descriptive study was adopted a statistical analysis by use of analytical tables. A test of Multicolinearity was directed using the regression analysis to ascertain whether there is correlation between product strategy and performance. The findings revealed that the product strategy employed are customisation and innovation and standardisation with respondents contributing performance at 61 to 68 percent. The study established that product strategies has effect on performance of multinational corporations on FMCG firms in Kenya. This is attributed to the fact that majority of the companies’ employ product strategies. The study established that product strategies have effect on performance of multinational corporations on FMCG firms in Kenya. All the multinational companies agreed that they use at least one strategy. The study therefore recommends that local firms should adopt the said strategies in order internationalize.
Key Words: Product Standardization, Performance of Multinational Corporations
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