The Role of Women on Corporate Boards in Driving Green Product and Process Innovation in Sri Lanka

ABSTRACT The purpose of this study is to explore the impact of female leadership on the green innovation efforts of firms in Sri Lanka. Green product innovation was evaluated through the presence of ‘green’ patents, whereas green process innovation was assessed based on environmental management certifications. This study utilises secondary data from the annual reports of publicly listed companies covering the period from 2012 to 2023, applying probit regressions to examine the relationship between female directors and firm‐level green innovation. The findings indicate a systematic relationship between female board representation and the occurrence of green innovation at the firm level. This is evident through factors such as the presence of female directors, female chairpersons, board size, ESG, R&D, firm size and industry type. An additional increase in female representation on boards is more likely to enhance green product innovation, rather than green process innovation. The study provides empirical evidence that women in top management play a crucial role in shaping a firm's proactive environmental strategies. The findings offer valuable insights for enhancing corporate governance with a focus on environmental sustainability.