Stakeholder Engagement and Sustainable E-Waste Competitive Strategies: Evidence from Utility Firms in Kenya

Abstract

The electronics industry is among the largest and fastest-growing sectors globally, a trend that has resulted in a significant increase in the generation of electronic waste (e-waste). E-waste may be viewed not only as an environmental challenge but also as a strategic resource. Despite the growing importance of e-waste management, empirical research examining the relationship between e-waste disposal strategies and competitive advantage remains limited in the Kenyan context, particularly within the utility sector. This gap persists despite Kenya’s unique regulatory, institutional, and socio-economic environment, where weaknesses in the adequacy, coverage, and enforcement of e-waste regulations have contributed to documented environmental and public health incidents, including lead poisoning cases associated with improper disposal of electronic waste. At the same time, Kenya presents opportunities for economic gains through e-waste recycling and reuse. The study examined the influence of e-waste disposal strategies on the competitive advantage of utility firms in Kenya. The study focused on utility companies dealing with electricity, telecommunications, water and sanitation operating across all forty-seven counties, which are among the largest generators of e-waste in the country. The specific objectives were to assess the effect of value addition and transfer of e-waste on the competitive advantage of utility firms in Kenya, with stakeholder engagement applied as a moderating variable. The study was anchored on the resource-based view theory, competition theory, game theory, and waste management theory. Survey research design was adopted, targeting officers drawn from utility firms using a random sample of 235 respondents. Primary data was collected using structured questionnaires administered through hand delivery and electronic mail. Data analysis involved descriptive and inferential statistics, with multiple regression analysis conducted using SPSS version 25. The results revealed that the variables had a positive and statistically significant relationship with competitive advantage of utility firms in Kenya. The regression model yielded R² value of 0.302 (30.2%) in Model 1 without the moderating variable. After the introduction of the moderating variable in Model 2, R2 rose to 0.514 (51.4%). In Model 3, R2 increased to 0.545 (54.5%) with moderator variable as intercept and slope shifter, indicating that the independent variables jointly explained 54.5% of the variation in competitive advantage, while 45.5% was attributable to factors not captured in the study. After introduction of stakeholder engagement emerged as moderator variable, it had the highest beta of +0.499 which was significant. The study concluded that environmentally compliant and strategically managed e-waste disposal practices enhanced competitive advantage by minimizing social and environmental costs, improving organizational efficiency, and maximizing welfare outcomes. The findings contribute to theory, policy, and practice by demonstrating that sustainable e-waste management is not only an environmental imperative but also a strategic driver of competitive advantage for utility firms in Kenya.