This study aims to investigate how firms’ pursuit of relative innovation ambidexterity, balancing exploratory and exploitative innovation, is associated with consistency in environmental, social and governance (ESG) disclosures. It highlights the tensions innovation creates in maintaining coherent ESG communication.
Using panel data from global firms (excluding financial and real estate sectors) between 2016 and 2022, the authors test the curvilinear relationship between ambidexterity and ESG disclosure dispersion. Moderating effects of board women concentration and industry concentration are examined, alongside mediation by coordination costs.
Results reveal an inverted U-shaped relationship between ambidexterity and ESG disclosure dispersion. Board women concentration and industry concentration both weaken this effect, while coordination costs partially mediate it.
Findings are limited to large, publicly listed firms and rely on selling, general and administrative intensity as a proxy for coordination costs. Future work could examine smaller firms, longitudinal governance shifts or alternative coordination measures.
Managers should calibrate ambidexterity to avoid fragmentation in ESG reporting. Strengthening governance diversity and improving coordination processes can reduce disclosure inconsistencies.
Clearer ESG communication fosters stakeholder trust and improves the credibility of sustainability disclosures, supporting broader societal goals of transparency and accountability.
To the best of the authors’ knowledge, this study is among the first to link innovation ambidexterity with ESG disclosure dispersion. By integrating governance and coordination perspectives, it advances understanding of how firms sustain coherent sustainability communication amid innovation-driven complexity.
