Environmental Dilemma? Explicating Stakeholder Engagement in Kenyan Firms

Stakeholder pressure is among the pathways through which firms are being prodded to adopt environmental management practices. Owing to research paucity from the context of developing countries and overall inconclusiveness, this research investigates whether mimetic, normative, and cot11zercive pressures (which encompass stakeholder pressure) sway firms into adopting resource management and energy efficiency. An analysis of data from 852 firms in Kenya using a simple probit model, suggests that all the three types of stakeholder pressure positively influenced corporate resource management and energy efficiency. This augments our postulations on both stakeholder and neo-institutional theories. Based on these findings, it is plausible to view stakeholders as critical ‘tools’ that can foster corporate sustainability initiatives in developing countries.