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How National Culture Shapes the Relationship Between Board Gender Diversity and Environmental Performance: Evidence From Developed Economies

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Business Strategy and the Environment

Published online on

Abstract

["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nThis study investigates the moderating role of Hofstede's cultural dimensions on the relationship between board gender diversity and corporate environmental performance, including its components (resource use, emissions management, environmental innovations), across publicly listed companies headquartered in 32 developed economies. Through a multilevel random‐effects within–between regression analysis of an unbalanced longitudinal dataset comprising 36,402 firm‐year observations from 2016 to 2024, we decompose board gender diversity into its dynamic and structural components and offer a novel perspective on the association. The results reveal a positive association between board gender diversity and environmental performance that is shaped by cultural context. It is negatively moderated by individualism and uncertainty avoidance and positively moderated by power distance and motivation towards achievement and success. These moderations operate entirely through the dynamic component of board gender diversity rather than through its structural component. Our findings highlight the complex, context‐dependent interplay between national culture and board gender composition in the shaping of environmental outcomes.\n"]