Effects of imported Goods on the performance of Locally produced Goods in Kenya A case study of the Juakalimetal Work Enterprises Kamukunji Market Nairobi

Abstract

Globalisation has made it easier for traders to import goods into the country at the expense of local industries. The Kenyan Juakali industry has been adversely affected by the business of importation which has seen the performance of the industry to decline sharply in recent years. This study sought to establish the effects of imported products on the performance of locally produced goods by small-scale metalwork enterprises. The study was guided by the following specific objective: To establish how attributes of imported products affect the performance of locally produced goods; To determine the extent to which consumer perception on imported goods affects the performance of locally produced goods; To examine how consumer attitude towards products affects the performance of locally produced goods and to establish the effects of priceon the demand of locally produced goods. Moreover, the study was guided by three theories namely: the resource-based theory of competitive advantage, comparative advantage theory of international trade and the export base theory. To inform the objectives of the study, the target population under study was to be of small-scale metal enterprises which was estimated to be 160 artisansin Kamukunji Market. Out of this, a sample of 120 respondents was arrived at using the Cochran formula. Data was collected by the use of questionnaires which contained structuredquestionnaire Descriptive analysis including frequencies and percentages was used to summarize and organize quantitative data. The findings from the structured questionnairwere then summarized, coded and analysed quantitatively and presented in tables to draw conclusions on the research questions. The study arrived at the following followingconclusions, consumer attitude and perception of imported products is overwhelming good as compared to that of local products. Moreover, it emerged that traders who trade in imported products make more sales and higher profits. The main reason for the popularity of imported goods may be attributed to the fact that respondents in the study noted that imported goods were trendier, well marketed and gave consumers their value for money. It also emerged that local industries lack elaborate structures to pursue marketing and research and development activities. Accordingly, it is imperative that local industries adopt more robust strategic management and marketing to facilitate the growth of the industry and improve the consumer market perception and attitude on local industries. Key stakeholders such as the government should facilitate the growth of the industry by lowering the cost of doing business and providing financial incentives to encourage the growth of the business.