Research on the Impact of Interlocking Director Network Centrality on the Green Innovation Efficiency of Heavily Polluting Enterprises

Heavily polluting enterprises are key targets for environmental governance and core entities in industrial transformation. In the context of implementing the "dual carbon" goals, how to enhance the green innovation efficiency of heavily polluting enterprises is an essential aspect. The impact of interlocking director networks on green innovation efficiency is crucial. Based on the information on interlocking directors' concurrent positions in enterprises, this paper constructs an interlocking director network among heavily polluting enterprises. It innovatively explores the impact and mechanism of the centrality of the interlocking director network on the green innovation efficiency of heavily polluting enterprises from a social network perspective, and further investigates the moderating effect of enterprise absorptive capacity. The study finds that the centrality of the interlocking director network positively impacts the green innovation efficiency of heavily polluting enterprises; absorptive capacity enhances the promoting effect of the centrality of the interlocking director network on the green innovation efficiency of heavily polluting enterprises. Mechanism testing reveals that the centrality of the interlocking director network promotes the improvement of green innovation efficiency in heavily polluting enterprises through resource and reputation mechanisms. Furthermore, this positive effect is more significant in heavily polluting enterprises located in the eastern region, those with a state-owned nature, and those in provinces with high environmental attention. This paper extends the research on director networks to the context of green innovation, which helps deepen the understanding of the pathways through which director networks enhance the green innovation efficiency of heavily polluting enterprises in China. It also provides decision-making references for regulatory authorities to guide the green transformation of heavily polluting enterprises.