Does board’s green theme training promote green innovation? A view from resource dependence perspective: Indonesian evidence

Abstract

Purpose The study has practical implications for decision-makers in that increasing board competence and expertise through training on environmental issues will promote green policy-making. Design/methodology/approach This study included 655 firm-year observations from companies listed on the Indonesia Stock Exchange between 2017 and 2021. Panel data regression analysis is used to investigate the hypotheses. Additionally, a robustness test is conducted to validate the consistency of the primary test results. Findings The results demonstrate that green theme training from the board of directors, board of commissioners and independent commissioners has a positive and significant impact on the implementation of green innovation at each level of the board. This result is aligned with the robustness test performed. Research limitations/implications This study is restricted by the fact that the only data sources used to examine the board’s green training are publication reports and other reports that disclose the board’s training activities. Therefore, future research can be done by considering other methods, such as surveys to trace green training followed by the board. Additional research may also examine green theme training in the corporate governance structure from a different theoretical angle, such as agency theory and human capital theory. Practical implications In practice, the study has implications for decision-makers in that increasing board competence and expertise through training on environmental issues will be able to promote green policy-making. Originality/value This study concentrates on Indonesia with two-board governance characteristics: the board of directors and the board of commissioners. Several scholars have examined the board of directors in light of resource dependence theory. To the best of the authors’ knowledge, no research has explained the supervisory board within the context of two-board governance. In addition, the authors have not found research that analyzes board training activities related to the environment.