Abstract
The study falls within the sustainability, governance, and environmental field of research. It aims to examine the impact of corporate culture on green innovation utilizing data from U.S. firms between 2003 and 2021. It leverages newly available corporate culture data which is developed using advanced machine learning techniques to measure five cultural dimensions including innovation, integrity, quality, respect, and teamwork extracted from corporate earnings call transcripts. The study is grounded in the Resource-Based Theory which posits that corporate culture as a unique and intangible resource plays a pivotal role in fostering sustainable innovation and competitive advantage. It employs a quantitative approach to test the hypotheses proposed where the data is collected from the Refinitiv Database. The results show that a strong corporate culture positively influences green innovation with innovation and quality emerging as key drivers. The study also highlights the moderating role of external governance, finding that the positive impact of corporate culture is more pronounced in firms with high ownership concentration and greater analyst coverage. By integrating internal cultural values and external oversight, this research provides insights into how firms can foster sustainable innovation offering implications for managers, investors, and policymakers focused on promoting environmental sustainability within corporate strategy. In conclusion, the study underscores the critical role of corporate culture in driving green innovation highlighting innovation and quality as key cultural dimensions that enhance sustainable practices.
Presenters
Yasean TahatAssociate Professor of Accounting, Gulf University for Science and Technology, Kuwait
Details
Presentation Type
Paper Presentation in a Themed Session
Theme
Economic, Social, and Cultural Context
KEYWORDS
Corporate Culture, Green Innovation, Sustainability, Corporate Governance, Resource Based Theory
