Corporate board network and green technological innovation: a view of guanxi culture in China

Abstract

ABSTRACT Given the pivotal role of guanxi as an informal arrangement for resource acquisition in China, this study integrates social capital theory with social network analysis to explore the effect of firms’ guanxi in board networks on green technological innovation (GTI). The findings suggest that firms with more stable and flexible guanxi are likely to have access to more adequate and diverse social capital to support GTI. Furthermore, we theorise that these relationships are more pronounced for firms with better corporate social responsibility performance, as this may strengthen connected firms’ trust in the focal firm and allow it to draw more GTI resources. This effect, however, only holds for non-state-owned firms. Stronger absorptive capacity also enhances the contribution of guanxi to GTI by helping firms gain more recognition from connected firms for GTI engagement, thereby positively moderating the relationships. This study may provide insights for shareholders to promote firms’ GTI.