Green Strategies and Competitive Advantage of Automobile Firms in Kenya

Abstract

Companies worldwide have tried to gain competitive advantage over their competitors in order to achieve organizational success with less emphasis on environmental effects of their economic activities. Firms are turning to green strategies in an attempt to address cost and profit related issues. The study sought to identify the green strategies and establish the influence of green strategies on competitive advantage of automobile firms in Kenya. This study adopted a descriptive cross-sectional survey design. The target population of the study comprised all 167 registered automobile dealers in Nairobi County. The study used simple random sampling technique to select a sample of 51 firms. The study collected primary data using semi structured questionnaires. Descriptive statistics including mean and standard deviation was used in the analysis. For open ended questions, content analysis was used. The analyzed data was presented using tables and charts. In addition, the study conducted a multiple regression analysis. The study found out that the organizations had a policy on environmental conservation and the environmental conservation policy was adhered to in all organizational tasks, the companies imports the latest vehicles which are energy efficient, selects units with little smoke emissions to conserve the environment, imports vehicle units manufactured with recyclable materials, imports vehicle units that uses renewable energy sources, imports vehicle units that are efficient in fuel consumption, imports vehicle units that are bio-fuel propelled and adheres to importation of good quality cars. The study further established that the companies uses eco-branding to attract customers and had environmental preservation labels on all their units. The study concludes that environmental policy strategies, energy saving strategies, eco-branding strategies and eco-labeling strategies are the major factors that positively affect the adoption of green innovation by automotive firms in Kenya and that automotive companies that align these requirements with innovative green products and processes meet customer demand well and outperform their competitors. The study recommends that companies should design green innovative products and adopt green innovative processes to achieve competitive advantage.