Green Innovation Strategies, Environmental Regulations and Competitive Advantage of Tea Processing Firms in Rift Valley Region, Kenya

In the context of growing environmental concerns, examining the effect of green innovations on the competitiveness of tea processing firms not only broadens the frontier of research in the field, but also provides guidance to firms in their pursuit of competitiveness and sustainability. To assess tea processing firms' competitive advantage, this study looked into the moderating role of environmental regulations in the interaction of green innovation practices and competitive advantage in the Rift Valley Region of Kenya. The study was guided by four theories: the Schumpeter theory of innovation, dynamic capabilities theory, institutional theory, and Porters' theory of competitive advantage. An explanatory research design was used. The investigation focused on 59 private tea firms in Rift Valley counties. The sample size was 51 private tea processing firms and 204 informants drawn from the population. A multi-stage sampling technique was used. A questionnaire was used to collect primary data, and a documentary analysis guide for secondary data. Expert opinion determined validity, and Cronbach's alpha was used to assess reliability. The data was analysed using descriptive and inferential statistics. Descriptive statistics included frequencies, percentages, means, and standard deviations, whereas inferential statistics included regression analysis. The research is important to the studied firms because it serves as a decision-making reference and provides insight to regulatory bodies on sustainability issues. It will also serve as a foundation for future research in the areas of environmental guidelines, green innovation, and competitive advantage. The study found that circular economy practices (β1=0.298, p<0.05), resource efficiency (β2=0.225, p<0.05), waste reduction (β3=0.234, p<0.05), green business model innovation (β4=0.246, p<0.05), and environmental regulations (β5=0.177, p<0.05) all had a positive and significant effect on competitiveness. Implementing circular economy practices, improving resource efficiency, reducing waste, innovating green business models, and adhering to environmental regulations all contribute significantly to tea processing firms' competitive advantage in Kenya's Rift Valley Region. The study suggests that tea processing companies standardize refurbishment, invest in advanced recycling and waste reduction technologies, optimize production processes, improve transparency, and streamline certification to strengthen sustainability and competitive advantage.