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Can executive diversification tackle the green innovation bubble? The dual innovation challenge

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  • Sun, Yanbin
  • Zhang, Min

Abstract

This study investigates how diversifying the functional experiences of top management teams (TMTs) influences the corporate green innovation bubble. From the perspective of ambidextrous innovation, we conduct theoretical analysis and empirical tests. The results demonstrate a robust U-shaped relationship between executive functional experience diversity and the green innovation bubble, characterized by initial suppression followed by promotion. This relationship is fully mediated by exploratory innovation and partially mediated by exploitative innovation. Moreover, media attention, as an external governance mechanism, significantly intensifies the U-shaped relationship. The findings deepen the understanding of how corporate green innovation quality is formed and provide critical theoretical foundations and practical insights for optimizing TMT structure and enhancing innovation efficiency in the context of sustainable development.

Suggested Citation

  • Sun, Yanbin & Zhang, Min, 2026. "Can executive diversification tackle the green innovation bubble? The dual innovation challenge," Finance Research Letters, Elsevier, vol. 92(C).
    • Handle: RePEc:eee:finlet:v:92:y:2026:i:c:s154461232600084x
    DOI: 10.1016/j.frl.2026.109553
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    Keywords

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    JEL classification:

    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis

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