A Grounded Theory Examination of Supervisory Boards’ Governance Capability Indicators in Publicly Traded Firms: A Sustainability Perspective

Baorong Guo, Xinan Zhao () and Lizhi Hu
Additional contact information
Baorong Guo: School of Business Administration, Northeastern University, Shenyang 110167, China
Xinan Zhao: School of Business Administration, Northeastern University, Shenyang 110167, China
Lizhi Hu: Sujiatun District Tax Bureau, Shenyang 110101, China

Sustainability, 2023, vol. 15, issue 13, 1-17

Abstract: Embedded within the sustainable development framework, our research leverages proceduralized grounded theory to refine and universalize supervisory governance capabilities, thereby aiming to assess the theoretical saturation of the resultant model and to devise a comprehensive, sustainability-inclusive index of supervisory board governance competence. Focusing on five publicly traded Chinese companies, the research employs a tripartite coding process integral to grounded theory methodologies. By methodically refining case studies, it identifies sustainability-oriented governance capacity indicators. Data are conceptualized and compartmentalized via open coding, then divided into five primary clusters via axial coding, resulting in sustainability-focused governance capacity indicators for supervisory boards. Using selective coding strategies, the study uncovers forty-two competency indicators pertinent to sustainable corporate governance, organized into three domains across eight sustainability-related dimensions. These include individual characteristics, sustainability value judgment, experiential wisdom, collaborative communication for sustainable practices, resource integration, general employment prerequisites, professional application in sustainability, and sustainable business acumen. The findings enhance supervisory board member selection and performance assessment processes, promoting sustainable corporate governance. They also clarify supervisory roles in sustainability, offering a holistic view of supervisory board internal governance mechanisms. By maintaining the objectivity of these indicators, the study advances the field.

Keywords: grounded theory; supervisory board; governance capacity; sustainability; indicator identification; publicly traded firms; corporate governance (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2071-1050/15/13/10666/pdf (application/pdf)
https://www.mdpi.com/2071-1050/15/13/10666/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:15:y:2023:i:13:p:10666-:d:1188144

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().