Leveraging Board Experience Diversity to Enhance Corporate Green Technological Innovation

This study examines the role of board experience diversity in fostering corporate green technological innovation (CGTI), focusing on the moderating effects of absorptive capacity and director network location. Integrating upper echelons theory with absorptive capacity theory, we explore how board experience diversity enhances strategic decision-making and innovation. We hypothesize that board experience diversity improves CGTI by broadening cognitive perspectives. We also examine the moderating effect of absorptive capacity on the relationship between board experience diversity and innovation. We examine Chinese A-share listing firms, finding that board experience diversity positively affects CGTI, and absorptive capacity strengthens this effect. Additionally, we show that director network location, proxied by centrality in inter-board networks, not only strengthens the association between board experience diversity and innovation but also affects innovation. Furthermore, we conducted heterogeneity and mechanism tests, confirming the robustness of these relationships. These findings contribute to the literature on corporate governance and sustainability by emphasizing the roles of board experience diversity, absorptive capacity, and network position in driving CGTI.

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Publication Details

Journal
Sustainability
Published
2025-04-09
DOI
https://doi.org/10.3390/su17083351
Citations
5
Primary Topic
Corporate Social Responsibility Reporting
Type
article
Field-Weighted Citation Impact
11.13
Controls
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article

Leveraging Board Experience Diversity to Enhance Corporate Green Technological Innovation

Xiaoyu Wu, Xin Zhao, Shuyang Wang
5 citations
Sustainability
Corporate Social Responsibility Reporting
11.13
article

Leveraging Board Experience Diversity to Enhance Corporate Green Technological Innovation

Xiaoyu Wu, Xin Zhao, Shuyang Wang
article en
5 citations

Abstract

This study examines the role of board experience diversity in fostering corporate green technological innovation (CGTI), focusing on the moderating effects of absorptive capacity and director network location. Integrating upper echelons theory with absorptive capacity theory, we explore how board experience diversity enhances strategic decision-making and innovation. We hypothesize that board experience diversity improves CGTI by broadening cognitive perspectives. We also examine the moderating effect of absorptive capacity on the relationship between board experience diversity and innovation. We examine Chinese A-share listing firms, finding that board experience diversity positively affects CGTI, and absorptive capacity strengthens this effect. Additionally, we show that director network location, proxied by centrality in inter-board networks, not only strengthens the association between board experience diversity and innovation but also affects innovation. Furthermore, we conducted heterogeneity and mechanism tests, confirming the robustness of these relationships. These findings contribute to the literature on corporate governance and sustainability by emphasizing the roles of board experience diversity, absorptive capacity, and network position in driving CGTI.

SustainabilityVol. 17(8)
Macau University of Science and Technology (MO)
Openalex Percentile: Top 2%
Corporate Social Responsibility Reporting
11.13
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