Corporate Governance and Sustainability: The Moderating Role of Board Gender Diversity in the Relationship Between Environmental Innovation and Emission Performance

Iman Babiker, Mansour Ahmed Elmansour Elfaki (), Abdelrahman Mohamed Mohamed Saeed, Amani Ebnaoof, Sawsan Abdelhfiz Hassan Khattab and Amira Abdalrhman Almekki Abdalbagi
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Iman Babiker: Department of Accounting, College of Business Administration, Princess Nourah bint Abdulrahman University, P.O. Box 84428, Riyadh 11671, Saudi Arabia
Mansour Ahmed Elmansour Elfaki: Department of Economics, College of Business, Imam Mohammad Ibn Saud Islamic University (IMSIU), Riyadh 11564, Saudi Arabia
Abdelrahman Mohamed Mohamed Saeed: Department of Economics, College of Business, Imam Mohammad Ibn Saud Islamic University (IMSIU), Riyadh 11564, Saudi Arabia
Amani Ebnaoof: Department of Management, University College of Tayma, University of Tabuk, Tabuk 47512, Saudi Arabia
Sawsan Abdelhfiz Hassan Khattab: Department of Economics, Faculty of Economics and Administrative Sciences, Alzaiem Alazhari University, Khartoum North 11111, Sudan
Amira Abdalrhman Almekki Abdalbagi: Applied College Department: Administrative and Financial Sciences, Taibah University, Madina Munawwarah 42353, Saudi Arabia

Sustainability, 2025, vol. 17, issue 20, 1-22

Abstract: This study examines the effect of environmental innovation on emission performance and the moderating role of board gender diversity among firms in the Middle East and North Africa (MENA) region. Using a panel dataset of 2319 firm-year observations from 13 countries between 2013 and 2024, the analysis applies fixed-effects regression and robustness checks using the Generalized Method of Moments (GMM). The findings show that environmental innovation significantly improves emissions performance, confirming its strategic role in achieving sustainability goals. Board gender diversity has a positive direct impact on emissions outcomes, suggesting that diverse boards enhance sustainability-oriented governance. However, the interaction term has a negative and significant effect, indicating that gender diversity, while beneficial overall, can weaken the link between environmental innovation and emission performance, possibly because of complex decision-making processes. This study contributes theoretically by extending the Resource-Based View and Porter Hypothesis to an under-researched context, while emphasizing the need for governance mechanisms that leverage diversity without slowing innovation implementation. Future research should incorporate qualitative insights and examine other governance factors to deepen our understanding of how board composition influences sustainability strategies.

Keywords: environmental innovation; emission performance; board gender diversity; corporate governance; MENA region (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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