Strategic Management Practice Critical Success Factors and Green Marketing Strategy Status among Solar Energy Technology Dealers in Nairobi County in Kenya
DOI:
https://doi.org/10.53819/81018102t4347Abstract
The energy sector in Kenya contributes significantly to the country's economic development by creating employment opportunities and raising people's living standards. However, there is compelling evidence that solar energy technology products end of life e-waste poses great danger to the environment today and hence remains a strategic management challenge, not only for Kenya but the whole world. This study therefore employed strategic management concept in analyzing and understanding the strategic management practice critical success factors explaining green marketing strategy status among solar energy technology dealers in Nairobi County in Kenya. The study was underpinned by Resource Based Theory and Stakeholder Theory. The specific objectives were to establish the influence of Technological CSFs, organizational CSFs, environmental CSFs and individual CSFs on Green Marketing Strategic Management Practices among solar energy technology dealers in Nairobi. Descriptive research design was adopted with a target population comprising of all 521 solar energy dealer business firms situated within the Nairobi city county area according to EPRA (2022) registration records. The sample size comprised 226 respondents selected using purposive sampling method so that only those with at least five years’ experience in the solar energy supply business in Kenya were included. Both open and closed ended questionnaires were then administered to them to collect both qualitative and quantitative data for analysis. The data was analyzed into both descriptive and inferential statistics and presented using frequency tables and chats. The study found that technological factors (β=0.52, p=0.0023) and organizational factors (β=0.99, p=0.0002) had a positive and significant effect on GMSS, while environmental factors (β=-0.47, p=0.0615) and individual factors (β=0.37, p=0.0741) had no significant effect, with the model explaining 27.1% of GMSS variance (R=0.52, R²=0.271, p=0.003). The study recommends that all the technological factor indicators identified in the study be put into consideration when developing and implementing green marketing strategy and associated strategic management practices, especially for the solar energy technology market in Kenya.
Keywords: Strategic Management Practices, Solar Energy Technology, individual CSFs, Green Marketing, Technological CSFs, organizational CSFs, environmental CSFs
References
Ahmad, W., & Zhang, Q. (2020). Green purchase intention: Effects of electronic service quality and customer green psychology. Journal of Cleaner Production, 267, 122053. https://doi.org/ 10.1016/j.jclepro.2020.122053.
Alamsyah, D., Othman, N., & Mohammed, H. (2020). The awareness of environmentally friendly products: The impact of green advertising and green brand image. Management Science Letters, 10(9), 1961-1968.
Alharthey, B. K. (2019). Impact of green marketing practices on consumer purchase intention and buying decision with demographic characteristics as moderator. International Journal of Advanced and Applied Sciences, 6(3), 62–71. https://doi.org/10.21833/ijaas.2019.03.010
Aly, A., Moner-Girona, M., Szabó, S., Pedersen, A.B. & Jensen, S.S. (2019), "Barriers to Large-scale Solar Power in Tanzania", Energy for Sustainable Development, vol. 48, pp. 43-58, doi: 10.1016/j.esd.2018.10.009.
An, Q.; Sheng, S.; Zhang, H.; Xiao, H. and Dong, J. (2019). Research on the construction of carbon emission evaluation system of low-carbon- oriented urban planning scheme: Taking the West New District of Jinan city as example. Geol. Ecol. Landsc. 2019, 3, 187–196. [CrossRef]
Backman, C. A., Verbeke, A., & Schulz, R. A. (2017). The drivers of corporate climate change strategies and public policy: A new resource-based view perspective. Business & Society, 56(4): 545–575.
Baktash, L. and Talib, M. A. (2019). Green marketing strategies: exploring intrinsic and extrinsic factors towards green customers’ loyalty. Quality. Access to Success 20, 168 (2019)
Barney, J. B., & Hesterly, W. S. (2015). Strategic management and competitive advantage: Concepts and cases. Pearson.
Barney, J.B. (1991). Firm resources and sustained competitive advantage. Journal of Management 17 (1), 99---120.
Bong Ko, S., and Jin, B. (2017). Predictors of purchase intention toward green apparel products: a cross-cultural investigation in the USA and China. J. Fashion Mark. Manag. 21, 70–87. doi: 10.1108/JFMM-07-2014-0057.
Boute, A., & Zhikharev, A. (2019). Vested interests as driver of the clean energy transition: Evidence from Russia’s solar energy policy. Energy Policy, 133: 110910.
Bui, T. Q., Nguyen, N. T., Nguyen, K. K., & Tran, T. T. (2021). Antecedents affecting purchase intention of green skincare products: A case study in Vietnam. The Journal of Asian Finance, Economics, and Business, 8(3), 1295–1302. https:// doi.org/10.13106/jafeb.2021.vol8.no3.1295
Burke, P. J., Widnyana, J., Anjum, Z., Aisbett, E., Resosudarmo, B., & Baldwin, K. G. H. (2019). Overcoming barriers to solar and wind energy adoption in two Asian giants: India and Indone- sia. Energy Policy, 132: 1216–1228.
Choi, D., and Johnson, K. K. P. (2019). Influences of environmental and hedonic motivations on intention to purchase green products: an extension of the theory of planned behavior. Sustain. Prod. Consum. 18, 145–155. doi: 10.1016/j.spc. 2019.02.001
Chu, K., (2018). Mediating influences of attitude on internal and external factors influencing consumers’ intention to purchase organic foods in China. Sustainability 10 (12), 4690. https://doi.org/10.3390/su10124690.
Dezdar, S. (2017). Green information technology adoption: influencing factors and extension of theory of planned behavior. Soc. Responsib. J. 13, 292–306. doi: 10.1108/SRJ-05-2016-0064
Gilal, F. G., Chandani, K., Gilal, R. G., Gilal, N. G., Gilal, W. G., & Channa, N. A. (2020). Towards a new model for green consumer behaviour: A self‐ determination theory perspective. Sustainable Development, 28(4), 711-722.
Gong, S., Sheng, G., Peverelli, P., & Dai, J. (2020). Green branding effects on consumer response: examining a brand stereotype-based mechanism. Journal of Product & Brand Management. 5(3), 77-99.
Grant, R.M., (1996). Towards a knowledge-based theory of the firm. Strategic Management Journal 17 (Winter special issue), 109---122.
Guerin, T. (2017). A case study identifying and mitigating the environmental and community impacts from construction of a utility-scale solar photovoltaic power plant in Eastern Australia. Sol. Energy. 146, 94–104 (2017).
Heikell, L. (2020). Northern Lights is innovating for the future of carbon transport and storage. Microsoft. https://news. microsoft.com/transform/northern-lights-is- innovating-for- the-future-of-carbon-transport-and-storage/.
Hossain, A., & Khan, M. Y. H. (2018). Green marketing mix effect on consumers buying decisions in Bangladesh. Marketing and Management of Innovations, 4(December), 298–306. https://doi.org/10.21272/mmi.2018.4-25.
Humairoh, & Elfani, N. M. (2020). Is Green Marketing a Basis for Purchase Decisions.27(ICoSHEET2019),465–469. https://doi.org/10.2991/ahsr.k.200723.116.
Jacobson, M.Z. & Jadhav, V. (2018), "World estimates of PV optimal tilt angles and ratios of sunlight incident upon tilted and tracked PV panels relative to horizontal panels", Solar Energy, vol. 169, pp. 55-66, doi: 10.1016/j.solener.2018.04.030.
Jacobson, R. (1992). The ‘Austrian’ school of strategy. Academy of Management Review 17 (4), 782---807.
Jin, J., Zhao, Q., & Santibanez-Gonzalez, E. D. (2020). How Chinese consumers’ intentions for purchasing eco-labeled products are influenced by psychological factors. International journal of environmental research and public health, 17(1), 265.
Kaur, M. & Bhatia, A. (2018). The impact of consumer awareness on buying behavior of green products. International Journal of Scientific Research and Management 6 (4): 250-255.
Khan, F., Ahmed, W., & Najmi, A. (2019). Understanding consumers’ behavior intentions towards dealing with the plastic waste: Perspective of a developing coun- try. Resources, Conservation & Recycling, 142, 49–58.
Kim, W. H., Malek, K., & Roberts, K. R. (2019). The effectiveness of green advertising in the convention industry: An application of a dual coding approach and the norm activation model. Journal of Hospitality and Tourism Management, 39, 185- 192.
Kumar, V., Syan, A.S. and Kaur, K. (2020), "A structural equation modeling analysis of factors driving customer purchase intention towards solar water heater", Smart and Sustainable Built Environment, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/SASBE-05-2020-0069
Mokan K. V., Lee T. C. and Ramlan R. (2019). The Critical Success Factors for Renewable Energy Projects Implementation. International Journal of Recent Technology and Engineering (IJRTE) ISSN: 2277-3878, Volume-8, Issue- 1C2, May 2019
Nam, C., Dong, H., & Lee, Y. A. (2017). Factors influencing consumers’ purchase intention of green sportswear. Fashion and Textiles, 4(1), 2. https://doi.org/10.1186/ s40691-017-0091-3
Nwokolo, S.C. & Ogbulezie, J.C. (2018), "A qualitative review of empirical models for estimating diffuse solar radiation from experimental data in Africa", Renewable and Sustainable Energy Reviews, vol. 92, pp. 353-393, doi: 10.1016/j.rser.2018.04.118.
Ogiemwonyi, O., Harun, A.B., (2020a). Green product awareness has the potential to promote green consumer behaviour: evidence from Kuala-Lumpur. Israel J. Ecol. Evol. 67 (1–2), 39–50. https://doi.org/10.1163/22244662-bja10010.
Ørsted. (2020). Generation and operations. https://orsted.com/ en/sustainability/climate- action-plan/generation-and- operations.
Ozoegwu, C.G., Mgbemene, C.A. & Ozor, P.A. (2017), "The status of solar energy integration and policy in Nigeria", Renewable and Sustainable Energy Reviews, vol. 70, pp. 457- 471, doi: 10.1016/j.rser.2016.11.224.
Papista, E., & Dimitriadis, S. (2019). Consumer–green brand relationships: revisiting benefits, relationship quality and outcomes. Journal of Product & Brand Management.
Purohit, P. & Purohit, I. (2017), "Technical and economic potential of concentrating solar thermal power generation in India", Renewable and Sustainable Energy Reviews, vol. 78, pp. 648-667, doi: 10.1016/j.rser.2017.04.059.
Ritter, A. M., Borchardt, M., Vaccaro, G. L. R., Pereira, G. M., & Almeida, F. (2015). Motivations for promoting the consumption of green products in an emerging country: Exploring attitudes of Brazilian consumers. Journal of Cleaner Production, 106, 507–520. https:// doi.org/10.1016/j.jclepro.2014.11.066
Riviere, M., Bass, A. E., & Andersson, U. (2020). Dynamic capability development in multinational enterprises: Reconciling routine reconfiguration between the headquarters and subsidiaries. Global Strategy Journal, advance online publication July 31. https://doi.org/10.1002/gsj.1389.
Rossignoli, F., & Lionzo, A. (2018). Network impact on business models for sustainability: Case study in the energy sector. Journal of Cleaner Production, 182: 694–704.
Shakeel, S. R., Takala, J., & Zhu, L.-D. (2017). Commercialization of renewable energy technologies: A ladder building approach. Renewable and Sustainable Energy Reviews, 78: 855–867.
Sharaf, M. A., & Perumal, S. (2018). An Overview Profile and Green Purchasing Behavior of Consumers in the Northern Region of Malaysia. Journal of Research in Marketing, 8(3), 707. https://doi.org/10.17722/jorm.v8i3.229.
Sharma, A. and Foropon, C. (2019). Green product attributes and green purchase behavior: a theory of planned behavior perspective with implications for circular economy. Manag. Decis. 57, 1018–1042. doi: 10.1108/MD-10-2018-1092.
Shead, S. L. (2020). Facebook to use artificial intelligence in bid to improve renewable energy storage. CNBC. https://www.cnbc. com/2020/10/14/facebook-to-use-ai-in- bid-to-improve- renewable-energy-storage.html.
Shukla, A.K., Sudhakar, K., Baredar, P. & Mamat, R. (2018), "Solar PV and BIPV system: Barrier, challenges and policy recommendation in India", Renewable and Sustainable Energy Reviews, vol. 82, pp. 3314-3322, doi: 10.1016/j.rser.2017.10.013.
Siddique, M. & Hossain, A. (2018). Sources of consumers awareness toward green products and its impact on purchasing decision in Bangladesh. Journal of Sustainable Development 11 (3): 9-22.
Singhal, A., & Malik, G. (2018). The attitude and purchasing of female consumers towards green marketing related to cosmetic industry. Journal of Science and Technology Policy Management, September. https://doi.org/10.1108/JSTPM-11-2017-0063.
Situmorang, T.P.; Indriani, F.; Simatupang, R.A. and Soesanto, H. (2021). Brand positioning and repurchase intention: The effect of attitude toward green brand. J. Asian Financ. Econ. Bus. 2021, 8, 491–499.
Talebi, P., Omidi, N. A. M. and Lashgarara, F. (2018). Designing a green marketing behavioural pattern focusing on poultry products. Applied Ecology and Environmental Research 16, 5 (2018).
Tan, W.L., and Goh, Y.N. (2018). The role of psychological factors in influencing consumer purchase intention towards green residential building. Int. J. Hous. Mark. Anal. 11, 788–807. doi: 10.1108/ijhma-11-2017-0097.
Tarabieh, S. M. Z. A. (2020). The impact of greenwash practices over green purchase intention: the mediating effects of green confusion, green perceived risk, and green trust. Manag. Sci. Lett. 11, 451–464. doi: 10.5267/j.msl.2020.9.022.
Teece, D.J., Pisano, G., and Schuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal 18 (7), 509---533.
van Tulder, R., Verbeke, A., & Jankowska, B. (2019). International business in a VUCA world: The changing role of states and firms. Bingley: Emerald
Wang, C.L., and Ahmed, P.K. (2007). Dynamic capabilities: a review and research agenda. International Journal of Management Reviews 9 (1), 31---51.
World Bank. (2020). World Bank Data. https://data.worldbank. org/. Accessed 2 Nov 2021.
Wu, B.; Fang, H.; Jacoby, G.; Li, G. and Wu, Z (2021). Environmental regulations and innovation for sustainability? Moderating effect of political connections. Emerg. Mark. Rev. 2021, 100835. [CrossRef]
Xu, L., Ling, M., Lu, Y., & Shen, M. (2017). Understanding household waste separation behavior: Testing the roles of moral, past experience, and perceived policy effectiveness within the theory of planned behavior. Sustainability, 9(4), 625. https://doi.org/10.3390/su9040625.
Yi, S., (2019). Determinants of consumers’ purchasing behaviour for certified aquaculture products in South Korea. Sustainability 11 (14), 3840. https://doi.org/10.3390/ su11143840.
