**3. Corporate Innovation and Sustainability Practices**

Governance, corporate social responsibility (CSR), and innovation are interconnected aspects of corporate strategy and performance. Governance refers to the systems and processes through which companies are directed, controlled, and managed [3,6]. It encompasses the roles and responsibilities of the board of directors, management, and other stakeholders in decision-making and accountability. While CSR involves a company's commitment to conducting business ethically and responsibly, considering the impact of its operations on society, the environment, and stakeholders. It goes beyond legal requirements and aims to create a positive impact on society. Effective governance practices can provide the structure and framework for companies to prioritize and integrate CSR and innovation into their strategies. Moreover, CSR initiatives can also foster innovation by encouraging companies to identify and respond to emerging social and environmental trends. CSR practices can inspire creativity, collaboration, and the exploration of new business models that generate both social and economic value [2–4]. Moreover, innovation can contribute to CSR by enabling companies to develop sustainable solutions, reduce their environmental footprint, or create products and services that meet societal needs. Innovation-driven CSR initiatives can enhance a company's reputation, competitiveness, and long-term sustainability. The following papers address the interrelations between governance, CSR, and innovation arguing that, when effectively integrated, can drive

responsible and sustainable business practices while fostering creativity, competitiveness, and value creation for companies.

For instance, the seventeenth paper (Contribution 17) examines whether transformational leadership influences ESG performance in SMEs, whether organizational innovation mediates the relationship between transformational leadership and ESG performance, and the moderating effect of external social capital on transformational leadership and organizational innovation. Based on higher-order theory, resource-based theory, stakeholder theory, the results of the study indicate that transformational leadership has a positive effect on ESG performance, and that organizational innovation partially mediates the relationship between transformational leadership and corporate ESG performance. Furthermore, external social capital moderates the direct relationship between transformational leadership and organizational innovation and moderates the role of organizational innovation as a mediator between transformational leadership and ESG performance. This study adds to our further understanding of the relationship between transformational leadership and ESG performance in SMEs, expanding the antecedent research on ESG performance and providing a basis for sustainable SME development.

Linked to sustainable development and leadership, the eighteen paper (Contribution 18) investigates the association between executives' environmental protection background and corporate green innovation, as well as the mechanisms that influence this relationship. Drawing on the upper echelons theory, the study reveals a positive correlation between executives' environmental protection background and corporate green innovation. This positive relationship remains robust even when using alternative regression models and accounting for different measures of green innovation. Moreover, the findings indicate that media attention and board independence have a positive moderating influence on the relationship between executives' environmental protection background and green innovation.

Theoretically, the nineteenth article (Contribution 19) introduces a framework that examines the potential influence of board independence and the utilization of digital technology on a corporation's environmental performance. They used a sample of 53 publicly listed Italian companies is selected, and data on board composition, greenhouse gas emissions, and expenditures for Enterprise Resource Planning (ERP) digital technologies are collected over a five-year period. The results of the analysis partially support the predictions made in the framework. Specifically, a higher degree of board independence is associated with improved environmental performance. Their further analysis reveals that the environmental performance of companies is positively influenced by the use of digital technologies when these companies have a higher proportion of independent directors on their boards. This research contributes to our understanding of the determinants of Corporate Digital Responsibility (CDR), indicating that a greater presence of independent directors on a board has a positive impact on CDR.

Looking at the overborrowing issue in China, the twentieth article (Contribution 20) explores the impact of overborrowing in China's state-owned enterprises (SOEs) on their innovation spending. The study benefits from a theoretical model within the unique institutional context of China's banks, specifically focusing on the administrative-economic governance. By analyzing a longitudinal panel dataset of Chinese listed companies from 2012 to 2018, the study confirms that overborrowing acts as a mediator between state ownership and innovation expenditure, emphasizing the importance of improving the monitoring of banks to foster innovation in transitional economies. Furthermore, the study investigates the influence of political connections and managers' R&D experience in leveraging the innovation resources available to SOEs. The findings of this study reveal a negative impact of government intervention on the allocation of innovation resources and contribute to our understanding of the role of debt governance in promoting innovation in transition economies.

Focusing on the corporate strategy broadly, the twenty-first article (Contribution 21) employs propensity score matching, ordinary least squares, and quantile regression techniques to examine the relationship between voluntary disclosure of social responsibility and

innovation investment in enterprises. The findings reveal that when enterprises engage in voluntary disclosure of social responsibility, it leads to an increase in innovation investment. In other words, corporate social responsibility has a significant positive impact on both innovation and investment. However, as the level of innovation investment in enterprises increases, the impact of corporate social responsibility on innovation gradually diminishes. This research highlights the complex dynamics between social responsibility and innovation investment, providing insights into their interplay within corporate strategies.

While the twenty-second article (Contribution 22) focuses on the importance of environmental corporate social responsibility (CSR) for achieving economic benefits and sustainable development is a subject of great interest among theorists and practitioners. However, the specific relationship between environmental CSR and green innovation performance remains unclear. To address this research gap, this paper proposed a research model, incorporating the mediating effect of shared vision capability and the moderating effect of resource slack. The aim is to investigate the impact of environmental CSR on green innovation performance and to determine the conditions under which this relationship is most significant. The results of the study confirm a positive association between environmental CSR and green innovation performance. Additionally, shared vision capability was found to mediate the link between environmental CSR and green innovation performance. Furthermore, resource slack was found to have a statistically significant moderating effect on the relationship between environmental CSR and green innovation performance. These findings provide valuable insights for managers in formulating management policies related to environmental CSR, shared vision capability, and green innovation performance. By leveraging these insights, enterprises can work towards sustainable development and contribute to environmental friendliness in society as a whole.

The impact of innovation quality has become a growing concern in the academic industry. In previous studies, the impact of TMT experience heterogeneity on enterprise innovation quality has not been well explored. In the context of enterprise technologies and innovation, the twenty-third article (Contribution 23) argues that high-quality innovation can solve the "bottleneck" problem of key enterprise technologies and drive the high-quality development of enterprises. Based on the panel data of Chinese A-share listed companies, the following results were found (1) TMT functional experience heterogeneity positively affects partner diversity to promote innovation quality, while industrial experience heterogeneity shows the opposite result. (2) Enterprise partner diversity partially mediates the relationship between TMT experience heterogeneity and innovation quality. (3) TMT technological participation positively regulates the relationship between TMT experience heterogeneity and enterprise partner diversity.

In China, the Shanghai and Shenzhen Stock Exchanges implemented regulations in 2008 that require certain public firms to disclose their social and environmental governance information in annual reports. Therefore, the twenty-fourth article (Contribution 24) examines the impact of mandatory social and environmental regulations on firm innovation. Using a difference-in-differences approach with propensity score matching, the study finds that the firms subject to the regulations experience a significant increase in innovation, as indicated by a higher number of total patents and invention patents. Furthermore, the study reveals that the positive association between MSER and firm innovation is primarily driven by the CSR-improving effect and market-reaction effect. Specifically, the treatment firms demonstrate an enhancement in CSR performance and a decrease in transient institutional investors. These results highlight the role of MSER in fostering firm innovation and emphasize the importance of CSR and market dynamics in driving this relationship.

Green innovation plays a vital role in driving sustainable development and promoting green circular economic practices within businesses. It involves organizations considering environmental, social, and governance (ESG) aspects, and the resulting ESG advantages can serve as a catalyst for enterprises to undergo a green transformation. Focusing on that, the twenty-fifth article (Contribution 25) focuses on Chinese A-share listed companies from 2009 to 2020 to investigate the relationship between ESG rating performance and corporate

green innovation, as well as the boundary mechanisms that influence this relationship. The findings demonstrate that higher ESG ratings are associated with increased levels of green innovation among listed enterprises. Furthermore, the relationship between ESG ratings and green innovation is strengthened by the institutional environment and the availability of redundant organizational resources. This study provides empirical evidence supporting the positive impact of ESG ratings on green innovation within enterprises.
