Corporate governance determinants of sustainable manufacturing practice : the case of zero-defect manufacturing in multinational corporations
Oyewo, Babajide and Tauringana, Venancio and Ojiako, Udechukwu (2025) Corporate governance determinants of sustainable manufacturing practice : the case of zero-defect manufacturing in multinational corporations. Journal of Accounting Literature. ISSN 0737-4607 (https://doi.org/10.1108/JAL-06-2024-0133)
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Abstract
Purpose: This study aims to investigate the corporate governance (CG) determinants of sustainable manufacturing practice using zero-defect manufacturing (ZDM) from the stakeholder theory and legitimacy theory perspectives. Design/methodology/approach: Using a panel research design, the study analyses empirical data from Global 500 companies covering a 15-year period. Findings: The results show that Board Independence, Meeting Attendance by Board Members, Board Gender Diversity and Board Skills on Sustainable Manufacturing are positively associated with ZDM Practice, while Chief Executive Officer (CEO) Duality of Power has a negative impact. In the millennium development goals period, the foremost drivers of ZDM Practice are Board Independence, Board Gender Diversity and Board Skills on Sustainable Manufacturing, while this shifted to Board Independence and Board Gender Diversity in the sustainable development goals period. Originality/value: The study provides empirical evidence that organisations seeking to improve sustainable manufacturing practice may consider strengthening their CG structures to demonstrate responsible manufacturing in line with stakeholders’ expectations and to preserve corporate legitimacy. The results are robust to alternative proxies, potential endogeneity concerns and sample selection bias.
ORCID iDs
Oyewo, Babajide, Tauringana, Venancio and Ojiako, Udechukwu
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Item type: Article ID code: 91840 Dates: DateEvent20 February 2025Published20 February 2025Published Online19 January 2025Accepted19 June 2024SubmittedSubjects: Technology > Manufactures Department: Faculty of Engineering > Design, Manufacture and Engineering Management Depositing user: Pure Administrator Date deposited: 20 Jan 2025 13:59 Last modified: 27 Mar 2025 17:35 Related URLs: URI: https://strathprints.strath.ac.uk/id/eprint/91840