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Author(s): Fredrick Githui, Jane Njuru (Ph.D.).

Volume/Issue: Volume 9, Issue 1 (2026)

Page No: 65-76

Journal: African Journal of Economics and Sustainable Development (AJESD)

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Abstract:

This article is an exploratory investigation of the different ways in which the integration of strategic sustainability influences the competitive advantage and the long-term survival of select firms in emerging economies. Using a desk review approach, the paper studies the existing empirical and theoretical literature that deals with sustainability practices, competitive strategy, and corporate-performance models. A majority of the materials consulted contend that the adoption of the Environmental, Social and Governance (ESG) framework by corporate businesses is a source of advantage and competitiveness for companies. The studies cite several benefits of the strategy, among them are the efficiency in terms of the operation cost, the improvement of the brand image, the motivation of green innovation and the attraction of stakeholders. In addition, firms with sustainability-targeted strategies will not only be able to lower their expenses through resource optimization but will also be able to gain a competitive advantage in global markets with strict sustainability requirements and become more resilient to environmental and regulatory risks. Quite a few businesses, on the other hand, are still struggling with the problem of turning sustainability into the core of their long-term strategic planning because of institutional instability and the existence of conflicting short-term financial pressures in their operating environments. Although this is the case, the literature always points out that such companies will eventually perform better and will be in a stronger position in the market compared to those that have not taken such initiatives. The article argues that the implementation of sustainable strategies is fundamental not only for the achievement of environmental goals but also for the increase in the competitiveness of the companies. In essence, the analysis advocates the view that sustainability integration turns into business benefits when it is considered as a provider of new innovation and new market opportunities. Moreover, it allows the capturing of the long-term financial benefits embedded in Resource-Based Views (RBV), Dynamic Capabilities (DC) and Stakeholder Theory (ST) perspectives. To be efficient, the integration must be supported by the right governance and regulatory frameworks and, at the same time, it needs access to a funding source willing to finance sustainable projects. Therefore, the agenda of capacity building will have to be prioritized if firms want to use the commitment to ESG principles as a source of added value and sustained competitive advantages. The authors encourage corporate management and governments to take action for a mutual benefit by making the cooperation between their activities a powerful tool to motivate climate change mitigation innovation and increase firms’ intensities of competitiveness in line with the quick changes of the globalized markets.

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