Board Gender Diversity and Sustainable Innovation in Emerging Market Multinational Enterprises: Do Country-Level Institutions Matter?

There is little research attention on the antecedents of sustainable innovation (SI) in emerging market multinational enterprises (EMNEs). This study, therefore, considers the effect of board gender diversity on SI in EMNEs. We combine upper echelons and institutional theories to examine the influence of board gender diversity and country-level institutional factors on SI. Our analysis of a 10-year (2013–2022) panel data of EMNEs from 19 countries reveals a positive effect of board gender diversity on SI. Our study also reveals that country-level institutional factors such as governance effectiveness, control of corruption, and gender parity index moderate the positive association between board gender diversity and SI. Our study contributes to the literature on SI by providing insights on how board gender diversity and institutional quality enhance investments in SI. The managerial implications of our research are discussed.