Does board industry expertise foster ESG strategy? The mediating role of environmental innovation
- 18 June 2024
- journal article
- research article
- Published by Emerald Publishing in Management Decision
- Vol. 63 (2) , 560-585
Abstract
Purpose: The study aims to empirically examine the effect of board industry expertise on environmental, social and governance (ESG) strategy, and the mediating role of environmental innovation.Design/methodology/approach: Using an unbalanced sample of 341 publicly traded Italian non-financial firms and data collected from multiple sources over the period 2017–2021, this study applies single-mediator models via ordinary least squares regressions.Findings: Results indicate that directors’ industry expertise improves the corporate orientation toward sustainability strategy that is reflected in ESG objectives. This effect is partly mediated by a greater level of environmental innovation.Practical implications: The article suggests regulators to promote eco-innovation-friendly investment initiatives due to their value in advancing corporate sustainability strategies.Originality/value: The research fills a gap in the literature that has never explored the effect of board industry expertise on sustainability-related outcomes. Moreover, it advances the debate on the implications of board human capital by assessing its influence on ESG strategy and environmental innovation.Keywords
This publication has 118 references indexed in Scilit:
- Board competence and green innovation—Does external governance matter?Business Strategy and the Environment, 2023
- Advisory or monitoring role in ESG scenario: Which women directors are more influential in the Italian context?Business Strategy and the Environment, 2023
- Are women eco‐friendly? Board gender diversity and environmental innovationBusiness Strategy and the Environment, 2020
- Is environmental innovation conducive to corporate financing? The moderating role of advertising expendituresBusiness Strategy and the Environment, 2019
- Do board sustainability committees contribute to corporate environmental and social performance? The mediating role of corporate social responsibility strategyBusiness Strategy and the Environment, 2019
- Critical mass of female directors, human capital, and stakeholder engagement by corporate social reportingCorporate Social Responsibility and Environmental Management, 2019
- Diversity of Board of Directors and Environmental Social Governance: Evidence from Italian Listed CompaniesCorporate Social Responsibility and Environmental Management, 2017
- Factors Influencing Corporate Environmental DisclosureBusiness Strategy and the Environment, 2014
- Environmental Management Evolution: Empirical Evidence from Spain and ItalyBusiness Strategy and the Environment, 2012
- Corporate sustainability and innovation in SMEs: Evidence of themes and activities in practiceBusiness Strategy and the Environment, 2009