Leveraging Board Experience Diversity to Enhance Corporate Green Technological Innovation

Xin Zhao, Shuyang Wang and Xiaoyu Wu ()
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Xin Zhao: School of Business, Macau University of Science and Technology, Macao, China
Shuyang Wang: School of Business, Macau University of Science and Technology, Macao, China
Xiaoyu Wu: School of Business, Macau University of Science and Technology, Macao, China

Sustainability, 2025, vol. 17, issue 8, 1-25

Abstract: This study examines the role of board experience diversity in fostering corporate green technological innovation (CGTI), focusing on the moderating effects of absorptive capacity and director network location. Integrating upper echelons theory with absorptive capacity theory, we explore how board experience diversity enhances strategic decision-making and innovation. We hypothesize that board experience diversity improves CGTI by broadening cognitive perspectives. We also examine the moderating effect of absorptive capacity on the relationship between board experience diversity and innovation. We examine Chinese A-share listing firms, finding that board experience diversity positively affects CGTI, and absorptive capacity strengthens this effect. Additionally, we show that director network location, proxied by centrality in inter-board networks, not only strengthens the association between board experience diversity and innovation but also affects innovation. Furthermore, we conducted heterogeneity and mechanism tests, confirming the robustness of these relationships. These findings contribute to the literature on corporate governance and sustainability by emphasizing the roles of board experience diversity, absorptive capacity, and network position in driving CGTI.

Keywords: board experience diversity; corporate green technological innovation; absorptive capacity; director network location (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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