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Why diverse boards are market game-changers: driving the sustainable future from the lens of proactive eco-innovation for firm market performance

Author

Listed:
  • Md. Abu Toha

    (National University
    University of Cambridge
    Universiti Teknologi PETRONAS)

  • Satirenjit Kaur Johl

    (Universiti Teknologi PETRONAS)

  • Parvez Alam Khan

    (Universiti Teknologi PETRONAS)

  • Mohd Salim

    (Aligarh Muslim University
    International Institute of Business Study)

Abstract

Reactive Eco-innovation (REI) has gained considerable attention due to its potential to mitigate sustainability issues. However, post-COVID, there is a need to unlearn reactive behavior and relearn proactive behavior in innovative activities. Proactive eco-innovation (PEI) is hope or hype for the firm is yet to be explored. The prime objective of this study is to examine the impact of proactive eco-innovation on firm market performance (FMP). This research also investigated the moderation role of independent directors (ID) and women's diversity in provocative eco-innovation. This study bridges the gap by developing a proactive eco-innovation index for the energy sector to outperform the five (5) years of panel data of 31 listed firms at Bursa Malaysia. The findings showed that proactive eco-innovation has a direct relationship with FMP. The findings also found that independent directors moderate the relationship between proactive eco-innovation and FMP. In contrast, women's diversity has no moderating effect on the relationship above. The findings suggest corporations and policymakers should adopt proactiveness in eco-innovation practices due to their cost advantage and pollution-prevention potential.

Suggested Citation

  • Md. Abu Toha & Satirenjit Kaur Johl & Parvez Alam Khan & Mohd Salim, 2025. "Why diverse boards are market game-changers: driving the sustainable future from the lens of proactive eco-innovation for firm market performance," Quality & Quantity: International Journal of Methodology, Springer, vol. 59(2), pages 1253-1282, April.
    • Handle: RePEc:spr:qualqt:v:59:y:2025:i:2:d:10.1007_s11135-025-02059-0
    DOI: 10.1007/s11135-025-02059-0
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