Navigating geographic distance in environmental innovation and the paradoxical roles gender-diverse boards: Evidence from natural disaster response in Japan

Abstract

The deterrent effects of geographic distance on organizational behavior have garnered increasing attention from scholars in international business. However, there is a paucity of literature specifically addressing the interplay between geographic distance and ethical business operations. This study draws upon existing scholarly works related to geographic distance and pro-environmental behavior as critical components for responding to environmental legitimacy, thereby facilitating sustainable ocean and coastal governance. Our aim is to offer a distinctive perspective in the elements that affect geographic distance and its resulting influence on environmental innovation, particularly within the Eastern context of Japan. Grounded in legitimacy theory, we propose a conceptual model that clarifies the correlation between geographic distance and environmental innovation concerning ocean and coastal governance. More specifically, this study explores the moderating effect of board gender diversity (BGD) on the nexus between geographic distance and environmental innovation initiatives. To empirically validate this research framework, we acquired a firm-level dataset from two prominent organizations in Japan, namely Toyo Keizai and Nikkei, comprising a total of 577 observations. Our findings reveal a statistically significant negative correlation between geographic distance and environmental innovation efforts. Moreover, the results demonstrate that BGD amplify the correlation between geographic distance and engagement in environmental innovation initiatives. Lastly, we affirm the reliability of our results by applying diverse enhancements to our analytical models.