Does CEO Power Affect Manufacturing Firms’ Green Innovation and Organizational Performance? A Mediational Approach

Qiuyan Yan, Jing Yan, Duo Zhang, Shuochen Bi, Ying Tian (), Riaqa Mubeen and Jaffar Abbas ()
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Qiuyan Yan: Business School, Central University of Finance and Economics, Beijing 100081, China
Jing Yan: School of Business, Shandong University, Weihai 264209, China
Duo Zhang: International Institute of Culture and Education, Northeast Agricultural University, Harbin 150038, China
Shuochen Bi: D’Amore-McKim School of Business, Northeastern University, Boston, MA 02115, USA
Ying Tian: School of Management, Shandong University, Jinan 250100, China
Riaqa Mubeen: School of Management, Harbin Institute of Technology, Harbin 150001, China
Jaffar Abbas: School of Media and Communication (SMC), Shanghai Jiao Tong University (SJTU), Shanghai 200240, China

Sustainability, 2024, vol. 16, issue 14, 1-17

Abstract: In this research work, we investigate the direct impact of CEO power on corporate performance, as well as the mediating role of green innovation in this hypothesized relationship. In this study, we use observation data collected from 780 listed manufacturing companies, explicitly focusing on the Karachi Stock Exchange (KSE), and adopt a GMM (generalized method of moments) model for testing our hypotheses. The results of this research show that CEO power has a negative impact on sustainable corporate performance, while the mediating role of green innovation positively and completely regulates the effect of CEO power on enterprises’ sustainable performance. This study adds novelty to the literature as it explores the influence of green innovation in manufacturing enterprises on CEO power and firm performance and observes the direct impact of green innovation and CEO power on sustainable business performance. The results of this study show that a green innovation strategy significantly affects CEO power and manufacturing firm performance and that companies that adopt green initiatives can increase corporate value and improve their reputation among stakeholders. The conclusions of this study have important implications for both theory and practice in this field.

Keywords: manufacturing firms; green innovation; CEO power; firm performance; stakeholder interest (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:16:y:2024:i:14:p:6015-:d:1434979

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