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Driving the Sustainability Transition From Policy to Practice: Synergizing Corporate Governance and Technological Innovation to Advance Responsible Consumption and Production

Author

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  • Andrew Osei Agyemang
  • Kong Yusheng
  • Abednego Osei

Abstract

This study builds upon and extends the literature on corporate governance (CG), sustainability growth, and innovation by examining how corporate governance mechanisms influence responsible consumption and production (RCP), with technological innovation as a moderating factor. Drawing insights from resource‐based and institutional theories, we develop models that link corporate governance and RCP, driven by technological innovation. Using data from 282 listed manufacturing firms in China from 2010 to 2022, we employed advanced econometric techniques and instrumental variables to ensure the robustness of our findings. The results provide strong evidence that the circular economy committee, environmental management team, CSR committee, and gender diversity positively impact RCP, while the risk management committee and board tenure rate exhibit a negative association with RCP. Additionally, ESG executive compensation negatively affects RCP through indirect factors, whereas technological innovation strengthens the influence of corporate governance in promoting RCP. The findings reveal a significant heterogeneous impact of corporate governance on RCP across ownership structures and industries. Uniquely, the PSM‐DID model confirms the causal impact of corporate governance on RCP, providing additional empirical validation for the study's conclusions. The results remain robust and consistent across multiple validation tests, confirming the reliability and credibility of the findings. The findings underscore the critical need for firms to strengthen corporate governance mechanisms and integrate technological innovation to enhance sustainability practices, providing valuable insights for policymakers and industry leaders in advancing SDG 12.

Suggested Citation

  • Andrew Osei Agyemang & Kong Yusheng & Abednego Osei, 2025. "Driving the Sustainability Transition From Policy to Practice: Synergizing Corporate Governance and Technological Innovation to Advance Responsible Consumption and Production," Sustainable Development, John Wiley & Sons, Ltd., vol. 33(5), pages 6528-6548, October.
    • Handle: RePEc:wly:sustdv:v:33:y:2025:i:5:p:6528-6548
    DOI: 10.1002/sd.3478
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    References listed on IDEAS

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    2. Cheng Limei & Uragiwenimana Anathole & Yakubu Awudu Sare & Elizabeth Amoah, 2026. "Harnessing Innovation for a Greener Future: Unpacking the Interplay of Natural Resources, Institutional Quality, and Green Productivity in OECD and BRICS Nations," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 17(2), pages 5202-5236, April.

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