Does CEO Power Affect Green Innovation? The Moderating Role of Board Gender Diversity

ABSTRACT This study aims to investigate the impact of chief executive officer (CEO) power on green innovation (GI) in the Middle East and North Africa (MENA) region and examines whether board gender diversity (BGD) strengthens this relationship. The study uses a sample of 3015 firm‐year observations from listed companies in 11 MENA countries over the period 2016–2024. The research findings demonstrate that CEO incentives and CEO duality lead to better GI outcomes, but CEO tenure has negative effects on GI. The research findings also show that the proportion and number of female directors on the board of directors have a positive effect on the relationship between CEO power and GI, resulting in a stronger focus on environmental priority and monitoring effectiveness. Overall, the study provides novel evidence from an underexplored institutional setting, demonstrating that CEO power can serve as a catalyst for green innovation when supported by inclusive governance structures.