The Impact of Corporate Governance with Mediating Effect of Digital Innovation on Firm Performance

Abstract

Purpose: The COVID-19 issue emphasized the significance of strong governance in changing the firm's actions because there are still health hazards (Ashraf, 2020). With the pandemic scenario, digital innovation, adoption, and integration into practical activities and operations is critical for any organization seeking a long-term competitive edge (Grove, 2018). The current study is an attempt to understand the impact of corporate governance on firm performance with the mediating role of digital innovation
 Design/Methodology/Approach: Based on the most convenient sample approach, the Punjab banking industry has been considered. The questionnaire survey approach was used, and survey results were gathered through both online and in-person contacts
 Findings: The results obtained show that digital innovation has reduced the effect of Board Size and Board Diversity while the effect of Board Independence, Board Committees and Frequency of yearly conducted meetings held in a year were diverted from their directions in the results of indirect effect.
 Implications/Originality/Value: This study contributes to the literature by illuminating the aspects that might form the foundation for the creation of enhanced company performance. Following the global emergence of a pandemic, there has been very little literature work identified building a solid relational foundation.

Governance and Corporate Management System Supported by Innovation, Technology, and Digital Transformation as a Driver of Change

“…Corporate Governance (CG) refers to how organisations are administered, managed, and controlled. Many studies have focused on ensuring transparency, accountability, equity, and sustainability in the functioning of organisations [29][30][31][32], ensuring that leaders and managers act in accordance with the organisation's strategic goals and the best interests of all stakeholders [29].…”