Chapter 10: The Influence of Governance Structure on Business Innovation Strategies and ESG Performance

The nexus between corporate governance structures, business innovation trajectories, and organisational environmental, social and governance (ESG) performance has attracted significant attention from scholars, policymakers and practitioners. While existing research underlines that effective governance structures can drive both innovation and sustainability, the precise mechanisms and interactions among these domains remain insufficiently understood. This chapter aims to overcome these constraints by examining how governance frameworks influence business innovation tactics and ESG achievements through combining combinations of theoretical lenses to offer a comprehensive view of how governance influences organisational results. This chapter sheds lights on current issues regarding the interdependencies between corporate governance structure, various innovation trajectories underpinning current practices of business innovation strategies and sustainable performance. Also, the authors identify critical gaps in the literature and offer suggestions for future research to address these gaps using multi-theoretical lenses and mixed methodology to examine the nexus between these domains in various context and settings. The chapter points out areas where research is lacking and suggests a framework for examining the relationship between governance practices in businesses and aspects related to innovation, environmental sustainability and Sustainable Development Goals (SDGs). It underlines the importance of adopting approaches that ensure business goals are in line with societal and environmental concerns. By focusing on these themes in its analysis, the chapter aims to add to the existing body of knowledge on how corporate governance impacts innovation and sustainability efforts. It suggests directions for studies and provides insights that can be valuable for policymakers and corporate decision-makers.