Interlocking Director Network and Green Innovation in Japan

Abstract

This study integrates resource dependence theory and social network theory to explore how two key interlocking network positions—central network position and structural holes—drive corporate green innovation. Using empirical data from listed manufacturing firms in Japan between 2013 and 2019, a country renowned for its environmental leadership, the analysis reveals that both central network positions and structural holes significantly enhance the development of green technologies. Furthermore, absorptive capacity and connectivity with industry leaders are identified as moderating factors influencing the relationship between these network positions and green innovation. Distinct from prior research, this study highlights the pivotal role of network positions in fostering corporate green innovation. The insights provided are valuable for executives looking to enhance their firms' green innovation performance and for policymakers committed to advancing eco-innovation.