How does board interlock network matter for sustainability? A social learning approach to corporate environmental performance

Yi Zhao; Jegoo Lee

doi:10.1002/bse.3454

journal article May 30, 2023

How does board interlock network matter for sustainability? A social learning approach to corporate environmental performance

Yi Zhao

Jegoo Lee

Business Strategy and the Environment Vol. 32 No. 8 pp. 5889-5908 · Wiley

View at Publisher Save 10.1002/bse.3454

Abstract

AbstractThe study proposes a social learning perspective for corporate environmental performance (CEP), drawing on the social network approach. We examine how a firm's board interlock connections affect its CEP through direct and indirect social learning processes. Moreover, we argue that a firm's board interlock ties to other well‐connected firms amplify the effects of social learning on CEP. Empirical analyses with a unique dataset of the S&P 1500 firms support our hypotheses. This research clarifies the network mechanisms underlying the firms' social learning on environmental performance. We also provide practical implications about boards as a reservoir for firms' learning of environmentally beneficial activities in inter‐corporate networks.

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Details

Published: May 30, 2023
Vol/Issue: 32(8)
Pages: 5889-5908
License: View

Authors

Y

Yi Zhao

Stanford Center on Philanthropy and Civil Society Stanford University Stanford California USA

J

Jegoo Lee

College of Business The University of Rhode Island Kingston Rhode Island USA

Cite This Article

Yi Zhao, Jegoo Lee (2023). How does board interlock network matter for sustainability? A social learning approach to corporate environmental performance. Business Strategy and the Environment, 32(8), 5889-5908. https://doi.org/10.1002/bse.3454

How does board interlock network matter for sustainability? A social learning approach to corporate environmental performance

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