Knowledge and Networking in an Emerging Kenyan Market : A case study of Hydro Standard AB

Abstract: The aim of this paper is to understand the roles knowledge and network play in the internationalization process of a small company in an emerging Kenyan market. The research is based on a qualitative approach using an embedded case study design where primary data was collected from Hydro Standard AB, Swedish Trade Council and two water companies in Kenya; Mombasa and Mavoko water companies. Semi-structured and in-depth interviews were used in the project. Findings from the study show that the internationalization process of Hydro Standard AB was successful and mainly driven by building of networks. The study also found out that tacit knowledge is crucial for a firm to develop itself in the Kenyan market which is very informal. Through tacit knowledge, a firm is able to gain knowledge and handle challenges concerning business culture and other unwritten rules found in the market. Further, building relationships with politicians or local branch managers can enhance a firm's performance.