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

Year: 2025

Type: article

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.

Source: Sustainability

DOI: 10.3390/su17209041

Authors: Iman Babiker, Mansour Ahmed Elmansour Elfaki, Abdelrahman Mohamed Mohamed Saeed, Amani Ebnaoof, Sawsan Abdelhfiz Hassan Khattab, Amira Abdalrhman Almekki Abdalbagi