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The Role of Board Diversity in Driving Green Innovation: The Moderating Effect of Environmental Committees—Evidence from Saudi Arabia

Author

Listed:
  • Asaad Mubarak Hussien Musa

    (Department of Accounting, College of Business Administration in Hawtat Bani Tamim, Prince Sattam Bin Abdulaziz University, Al-Kharj 11942, Saudi Arabia)

  • Hassan Ali Alqahtani

    (Department of Finance, College of Business Administration in Hawtat Bani Tamim, Prince Sattam Bin Abdulaziz University, Al-Kharj 11942, Saudi Arabia)

  • Nadia Bushra Mohammed Ali

    (Department of Finance, Faculty of Business, Imam Mohammad Ibn Saud Islamic University (IMSIU), Riyadh 11564, Saudi Arabia)

  • Hiba Awad Alla Ali Hussin

    (Department of Finance, Faculty of Business, Imam Mohammad Ibn Saud Islamic University (IMSIU), Riyadh 11564, Saudi Arabia)

  • Abdulaziz Alhaddab

    (Department of Finance, College of Business Administration in Hawtat Bani Tamim, Prince Sattam Bin Abdulaziz University, Al-Kharj 11942, Saudi Arabia)

  • Rayan Alqubaysi

    (Department of Accounting, College of Business Administration in Hawtat Bani Tamim, Prince Sattam Bin Abdulaziz University, Al-Kharj 11942, Saudi Arabia)

Abstract

This study examines the relationship between board gender diversity and green innovation, focusing on the moderating role of board-level environmental committees in Saudi-listed firms. Drawing on upper echelon and agency theories, this study argues that gender-diverse boards enhance environmental innovation by improving strategic oversight, stakeholder responsiveness and long-term decision-making. Using panel data from 107 non-financial firms listed on the Saudi Stock Exchange (Tadawul) during 2018–2024, this study applies fixed effects and dynamic generalized method of moments (GMM) estimations to address endogeneity and unobserved heterogeneity. The findings show that board gender diversity positively influences green innovation, whereas environmental committees strengthen this relationship by institutionalizing environmental oversight and sustainability governance. This study contributes to the corporate governance and sustainability literature by demonstrating that the effectiveness of board diversity depends on the complementary governance structures. These findings have practical implications for firms and policymakers seeking to strengthen sustainable innovation and environmental governance in emerging economies such as India.

Suggested Citation

  • Asaad Mubarak Hussien Musa & Hassan Ali Alqahtani & Nadia Bushra Mohammed Ali & Hiba Awad Alla Ali Hussin & Abdulaziz Alhaddab & Rayan Alqubaysi, 2026. "The Role of Board Diversity in Driving Green Innovation: The Moderating Effect of Environmental Committees—Evidence from Saudi Arabia," Sustainability, MDPI, vol. 18(12), pages 1-30, June.
    • Handle: RePEc:gam:jsusta:v:18:y:2026:i:12:p:6031-:d:1965625
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