Mediating effect of innovation on corporate board and organizational performance of listed manufacturing firms in Nigeria

Abstract

The objective behind this research is to determine the influence of board size (BSZ), board independence (BID), board diversity (BDV), and board meetings (BM), on organizational performance with the use of innovation as mediating variable in the Nigerian listed manufacturing sector. Data were collected from top management and 550 questionnaires distributed among respondents. Only 407 questionnaires returned back and 384 questionnaires use for final analysis and remaining 23 questionnaires excluded due to missing values. PLSSEM used for analysis purpose and data collected by using simple random sampling technique. Findings reveal that BSZ and BDV have positive influence on organizational performance. Despite this, BID and BM have no influence on organizational performance. BSZ, BID, BDV, BM have significant and positive influence on innovation. Innovation also significantly mediates the relationship between corporate board and organizational performance. Furthermore, Innovation is an important construct in determining organizational performance. It is beneficial for manufacturing organizations to uses this construct in measuring organizational performance through corporate governance.