Corporate Board Composition and Its Influence on Sustainable Innovation: Evidence From Nigeria's Energy Sector
Abstract
This study investigated the influence of corporate board composition on sustainable innovation among energy firms listed in Nigeria from 2015 to 2024. Using an ex post facto research design, the study analyzed panel data obtained from annual reports and sustainability disclosures of eight purposively selected firms. Sustainable innovation was measured using a composite score derived from green patents, environmentally friendly product or process improvements, and reductions in environmental impact. The independent variables were board size and board gender diversity, with firm size serving as a control variable. Random Effects Panel Regression was employed following the results of the Hausman test, and diagnostic assessments confirmed the absence of multicollinearity, normal distribution of residuals, and no autocorrelation.The findings revealed that board size had a statistically significant positive effect on sustainable innovation, while board gender diversity exhibited an even stronger positive effect. Firm size also had a positive and significant influence. The model demonstrated strong explanatory power with an R² of 0.782. The study concluded that board composition plays a vital role in enhancing sustainable innovation in Nigeria’s energy sector. It recommends, among others, that regulatory bodies encourage gender-balanced boards to strengthen sustainability-oriented governance practices.
