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N. 1 (2020)

Environmental sustainability and board independence: What effects on innovation ambidexterity?

DOI
https://doi.org/10.3280/cgrds1-2020oa10134
Inviata
11 July 2020
Pubblicato
25-11-2020

Abstract

This study aims to investigate the relationship between environmental sustainability (ES) and innovation ambidexterity (IA), also considering the role of board independence (BI) in moderating this relationship. To this end, a research model is developed by drawing on both the natural resource-based view theory and agency theory. A survey is conducted on 111 Italian companies listed on the Milan Stock Exchange. A moderated hierarchical regression has revealed that ES positively influences exploitation innovation and exploration innovation. Moreover, BI strengthens the effect of ES on IA. These findings contribute to the IA literature identifying ES as strategic key to resolve the tensions between exploitation and exploration in firms’ innovations as well as suggesting that the increasing presence of independent directors on the board foster the joint pursuit of the two contradictory activities.

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