The effects of CEO duality, board size, and informal social networks on sustainable innovation and firm performance

Download This Article

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

Corporate governance affects the ownership and control of a firm. Conflicts between agents, managers and shareholders caused the crises of WorldCom, Enron, Tyco and Lehman Brothers. Therefore, the impact of chief executive officer (CEO) duality or board size on sustainable innovation and performance of small and medium-sized enterprises (SMEs) is relevant for research and evaluation. This may reflect the CEO style that supports long-term business growth with limited resources to enhance accountability, fast decision-making, and minimise hindrances to governance, particularly in emerging markets like India. The finding will help SMEs in maintaining their long-term viability. The current study examines the impact of CEO duality, board size, and informal social networks on sustainable innovation, governance, and performance of Indian SMEs to enable management to assess the significance of factors that contribute to firms’ sustainable performance.

Keywords: Informal Social Network, CEO Duality, Board Size, Sustainable Innovation Capabilities, Sustainable Firm Performance, SMEs

Authors’ individual contribution: Conceptualization — K.D., R.M., and A.S.; Methodology — K.D. and R.M.; Software — K.D., R.M., and A.S.; Validation — K.D., R.M., and A.S.; Formal Analysis — K.D., R.M., and A.S.; Investigation — K.D. and A.S.; Resources — K.D., R.M., and A.S.; Data Curation — K.D., R.M., and A.S.; Writing — K.D., R.M., and A.S.; Visualization — K.D., R.M., and A.S.; Supervision — R.M.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: G33, G34, C12

Received: 12.12.2023
Accepted: 31.05.2024
Published online: 04.06.2024

How to cite this paper: Dixit, K., Manna, R., & Singh, A. (2024). The effects of CEO duality, board size, and informal social networks on sustainable innovation and firm performance. Corporate Ownership & Control, 21(2), 165–177. https://doi.org/10.22495/cocv21i2art13