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Unveiling sustainability: Tech‐infused governance and ESG performance in textile industry

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  • Naiping Zhu
  • Jinlan Yang
  • Andrew Osei Agyemang

Abstract

We investigate the impact of corporate governance (CG) on environmental, social, and governance (ESG) performance in the textile industry in developing countries, taking into account the moderating role of technological innovation (TI). Based on institutional theory, we investigated the connection between CG, TI, and ESG performance. The study used secondary data from 197 textile firms in West Africa from 2010 to 2022. Our findings revealed a positive relationship between gender diversity and ESG performance. Similarly, a positive relationship was found between board independence and ESG performance. Contrarily, an inverse connection was found between board size and ESG performance, as well as CEO duality and ESG performance. The study adds to the academic literature on CG and ESG performance by emphasizing the necessity of balancing economic development with social responsibility and environmental preservation. In addition, the study highlights the need to stimulate technological innovation and create an effective governance structure conducive to implementing firms' ecological responsibilities. Lastly, policymakers can adopt the integrated ESG index in measuring firms' sustainability performance across all sectors and regions.

Suggested Citation

  • Naiping Zhu & Jinlan Yang & Andrew Osei Agyemang, 2025. "Unveiling sustainability: Tech‐infused governance and ESG performance in textile industry," Business Ethics, the Environment & Responsibility, John Wiley & Sons, Ltd., vol. 34(4), pages 1156-1170, October.
    • Handle: RePEc:wly:buseth:v:34:y:2025:i:4:p:1156-1170
    DOI: 10.1111/beer.12690
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