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

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  • Yi Zhao
  • Jegoo Lee

Abstract

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.

Suggested Citation

  • 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, Wiley Blackwell, vol. 32(8), pages 5889-5908, December.
    • Handle: RePEc:bla:bstrat:v:32:y:2023:i:8:p:5889-5908
    DOI: 10.1002/bse.3454
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