Steering Towards Green: Do Technology Directors Matter for Green Innovation? An Institutional Isomorphism Approach

Qurat Ul Ain, Hafiz Mustansar Javaid, Emanuela Mattia Cafaro and Raffaele D'Alessio

Corporate Social Responsibility and Environmental Management, 2025, vol. 32, issue 4, 5638-5657

Abstract: This research examines the influence of technology directors (TCDs) on green innovation (GI), using robust econometric techniques on data from non‐financial A‐share companies listed on the Shenzhen and Shanghai stock exchanges over the period 2008–2018. It considers the role of normative, mimetic, and coercive pressures—highlighting factors such as environmental sensitivity, technological progress, regulatory frameworks, and forms of ownership—and their impact on the relationship between TCDs and green innovation, following the industry‐specific patterns predicted by institutional theory. The results show a significant positive relationship between TCDs and green innovation, with institutional isomorphisms having a significant impact on this relationship. Consistent with critical mass theory, board composition with three or more TCDs significantly strengthens this relationship. The study suggests that understanding and managing these industry‐specific pressures, according to the types of institutional isomorphism they represent, is crucial to formulating the most effective board composition for promoting green innovation. The validity of our conclusions is supported by rigorous validation methods, including two‐stage least squares, Heckman's two‐stage, and propensity score matching, and underscores the central role of TCDs in promoting green innovation within firms.

Date: 2025
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https://doi.org/10.1002/csr.3250

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Persistent link: https://EconPapers.repec.org/RePEc:wly:corsem:v:32:y:2025:i:4:p:5638-5657

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