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

The 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...

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Bibliographic Details
Published inBusiness strategy and the environment Vol. 32; no. 8; pp. 5889 - 5908
Main Authors Zhao, Yi, Lee, Jegoo
Format Journal Article
LanguageEnglish
Published Chichester Wiley Periodicals Inc 01.12.2023
Subjects
board interlock
board resource provision
Companies
corporate environmental performance
Corporate learning
corporate sustainability
Empirical analysis
Environmental management
Environmental performance
inter‐organizational network
Learning processes
Social discrimination learning
Social learning
Social networks
Social organization
Social sustainability
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Summary:The 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.
ISSN:0964-4733
1099-0836
DOI:10.1002/bse.3454