Does CEO Power Affect Manufacturing Firms’ Green Innovation and Organizational Performance? A Mediational Approach-Reference-Cited by-同舟云学术

Does CEO Power Affect Manufacturing Firms’ Green Innovation and Organizational Performance? A Mediational Approach

Published:2024-07-14 Issue:14 Volume:16 Page:6015
ISSN:2071-1050
Container-title:Sustainability
language:en
Short-container-title:Sustainability

Author:

Yan Qiuyan¹,Yan Jing²,Zhang Duo³,Bi Shuochen⁴,Tian Ying⁵,Mubeen Riaqa⁶^ORCID,Abbas Jaffar⁷^ORCID

Affiliation:

1. Business School, Central University of Finance and Economics, Beijing 100081, China

2. School of Business, Shandong University, Weihai 264209, China

3. International Institute of Culture and Education, Northeast Agricultural University, Harbin 150038, China

4. D’Amore-McKim School of Business, Northeastern University, Boston, MA 02115, USA

5. School of Management, Shandong University, Jinan 250100, China

6. School of Management, Harbin Institute of Technology, Harbin 150001, China

7. School of Media and Communication (SMC), Shanghai Jiao Tong University (SJTU), Shanghai 200240, China

Abstract

In this research work, we investigate the direct impact of CEO power on corporate performance, as well as the mediating role of green innovation in this hypothesized relationship. In this study, we use observation data collected from 780 listed manufacturing companies, explicitly focusing on the Karachi Stock Exchange (KSE), and adopt a GMM (generalized method of moments) model for testing our hypotheses. The results of this research show that CEO power has a negative impact on sustainable corporate performance, while the mediating role of green innovation positively and completely regulates the effect of CEO power on enterprises’ sustainable performance. This study adds novelty to the literature as it explores the influence of green innovation in manufacturing enterprises on CEO power and firm performance and observes the direct impact of green innovation and CEO power on sustainable business performance. The results of this study show that a green innovation strategy significantly affects CEO power and manufacturing firm performance and that companies that adopt green initiatives can increase corporate value and improve their reputation among stakeholders. The conclusions of this study have important implications for both theory and practice in this field.

Publisher

MDPI AG

Link

https://www.mdpi.com/2071-1050/16/14/6015/pdf

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