Affiliation:
1. Department of Economics Università degli Studi della Campania Luigi Vanvitelli Capua Italy
2. Department of Economics, Management and Institutions Università degli Studi di Napoli Federico II Naples Italy
3. Stazione Zoologica Anton Dohrn – National Institute of Biology, Ecology and Marine Biotechnology Naples Italy
Abstract
AbstractOpen innovation (OI) has gained widespread attention in recent years as a catalyst for sustainable management. Through OI, companies can harness their environmental capabilities to develop sustainable innovations that provide mutual benefits for companies and society. We explore the impact of Corporate Governance (CG) on Green Product Innovation (GPI) as OI and the impacts of GPI on corporate financial performance (CFP). Adopting Heckman's two‐stage procedure to a panel of 622 science‐based firms over the study period of 2008–2021, in the first step, we test the link between boards of directors' characteristics and GPI engagement. In the second step, we test the relationship between GPI and CFP. The findings confirm that effective CG mechanisms positively impact GPI performance. Moreover, GPI is a positive predictor of reduced firm riskiness. Therefore, we provide new insights into the debate on the links among CG, GPI, and CFP that can help companies meet the new challenges of the ecological transition.
Subject
Management, Monitoring, Policy and Law,Organizational Behavior and Human Resource Management,Economics and Econometrics,Philosophy,Business and International Management