Abstract:
The purpose of this study was to investigate the determinants of
internationalisation of Information Communication Technology Small and Medium
Enterprises (ICT SMEs) in Kenya and why they do not grow to internationalise. The
specific objectives were to determine whether human capital, firm and environmental
characteristics influence internationalisation of ICT SMEs in Kenya. The research was
exploratory and the sample constituted of 48 ICT SMEs, 32 were software providers
(SWSPs) and 16 hardware providers (HWSPs). Top executives of Kenyan ICT SMEs in
the sample firms formed the key respondents in this research. The results of the study
suggest a need for theoretical modifications on a firm's internationalisation process by
broadening the perspective and incorporating the strategic context of a firm as adapted
from International Entrepreneurship Conceptual Model. The study emphasises the
significance of relational networks, both managerial and entrepreneurial, for establishing
position in foreign markets. It implies that a firm's evolution is significantly influenced
by its business network and by critical events. This highlights the importance of an ICT
SMEs entrepreneur’s international experience and qualifications which play a vital role
in a firm’s internationalisation process. The study concludes with recommendations that
the government implements its recent policies on ICT, and ensures that the framework
put in place will be effective to enable the development of the ICT sector especially
among the younger entrepreneurs. Additionally the ICT SMEs should ensure there is
availability of value adding and competent human resource base in business management
field as well as information technology and develop local content in their products to
ensure uniqueness, this will ensure competitive digital products in the international
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market. Finally, institutions in the ICT sector should work together with the government
to facilitate availability of information on foreign operations, regulations, possible
international partners as well as investment opportunities available abroad by
coordinating with our foreign embassies, business attaches and avail them to the ICT
SMEs.
