Board Diversity and Green Innovation: A Systematic Literature Review
Abstract
As the world continues to face mounting environmental crises, the prospects for green innovation have emerged as a strategic priority for firms striving to develop sustainably. This paper presents a systematic literature review on board diversity, emphasizing the characteristics of board diversity (gender, age, education, nationality, and professional background) on environmentally responsible innovation activities. Using the PRISMA methodology, 50 empirical and conceptual studies from 2010-2025 across Scopus, Web of Science, and Science Direct were identified. In general, the analysis of the articles shows a positive and significant relationship between board diversity and green innovation, with gender diversity and international diversity being especially impactful. By creating more diverse boards, organizations automatically expand the potential for innovation relative to environmental awareness, ethics, and engaging with stakeholders in strategic dialogue. Furthermore, this relationship may also be moderated and mediated by alt variables such as environmental disclosure, corporate social responsibility (CSR), and ESG performance. The review enhances the theoretical landscape by combining the Resource-Based View (RBV), Stakeholder Theory, and Upper Echelons Theory to explain the diversity and innovation relationship. It provides evidence of contextual variation across industries and nations, pointing to the relevance of institutional dimensions. It also offers policy and practice implications for policymakers, company managers, and investors on the possible benefits of diversity of board governance for innovation. The review also notes the absence of longitudinal studies and posits gaps, as well as highlighting the need for more complex, contextually-sensitive and multi-theoretical approaches to study the interaction of boardroom diversity with environmental innovation.
Keywords: Board Diversity, Green Innovation, Gender Diversity, Environmental Sustainability, PRISMA, Corporate Governance, ESG, CSR.
