Unraveling sustainable corporate governance: The dynamic interplay of network strategies, board social learning and board structure

Motivated by an increasing interest in the influence of corporate boards on environmental and societal organizational outcomes, this study aims to clarify the dynamic interplay among corporate network strategy, board social learning, and board structure in shaping corporate environmental and societal performance. Using a sample comprising 522 firms listed in the S&P 500 and Nasdaq 100 indexes, we apply a Stochastic Actor Oriented Model to assess a novel theoretical framework and conceptual model. Our findings reveal that firms occupying central positions within the network tend to demonstrate enhanced environmental performance. Conversely, social learning tends to diminish overall organizational performance, and board activity exerts a negative influence on environmental and non-financial performance (average environmental and societal performance). Moreover, increased board activity correlates with improved societal performance, while a negative relationship exists between board size and environmental performance. Notably, board independence negatively affects both environmental and overall non-financial performance. This research offers a theoretical synthesis of previously disconnected literature strands. Furthermore, our results carry implications for business owners and public policy development, enhancing our comprehension of corporate performance dynamics.