Guiding sustainable growth: The interplay between CEO trustworthiness, managerial ability, and green innovation

Abstract

Amidst growing calls for environmentally sustainable practices, this study delves into the nuanced relationship between CEO trustworthiness, managerial ability, and green innovation. Departing from surface‐level examinations, we propose that managerial ability serves as the link between CEO trustworthiness and green innovation initiatives. Moreover, we contend that the influence of CEO trustworthiness on managerial ability is accentuated under specific contextual conditions including higher social capital, crisis situations, and state‐owned firms. Drawing on a comprehensive analysis of Chinese firms over 12 years, this study provides robust support for these propositions. Our findings not only offer insights into the essential traits that CEOs should possess to foster competitiveness but also shed light on their role in driving sustainable innovation. By illuminating the intricate dynamics between CEO trustworthiness, managerial ability, and green innovation, our research contributes significantly to the literature offering novel perspectives and enriching the understanding of sustainable development strategies in organizational contexts.