Is Everyone On Board? An exploratory study about individual sustainability-oriented knowledge in Swedish corporate boards of directors

Sammanfattning: Sustainability-oriented knowledge is becoming an increasingly important factor in corporate success. However, there is a surprising lack of research about how it is incorporated into the corporation's highest decision-making body: the board of directors. The purpose of this thesis is to address this theoretical gap through an exploratory study of sustainability-oriented knowledge among Swedish corporate board members. We also aim to make a practical contribution by outlining preliminary advice to corporate decision-makers on how to enhance their board members' sustainability-oriented knowledge. To examine this, we use a combinative methodology with two separate studies: one quantitative and one qualitative. The quantitative study consists of a survey with the purpose of examining individual board members' sustainability-oriented absorptive capacity (SACAP), and how it is influenced by their personal characteristics. The qualitative study consists of in-depths interviews with the highest-ranking sustainability representatives from Swedish companies, with the purpose of examining the company's sustainability-oriented knowledge expectations and educational efforts towards their board members. Our main conclusion is that the sustainability-oriented knowledge of individual board members is affected by both their personal characteristics and by educational efforts from their companies. This suggests that the management of board members' sustainability-oriented knowledge is a multidimensional practice that requires parallel efforts from both the individual board members themselves and their organisation. These findings are mainly consistent with previous literature, and have narrowed the theoretical gap by identifying influencers of individual board members' sustainability-oriented knowledge through utilising concepts from knowledge management and board theory. We also contribute to corporate decision-makers by pinpointing educational efforts that companies can utilise to enhance their board of director's sustainability-oriented knowledge, as well as a deeper understanding of some personal characteristics that affect individual board members' sustainability-oriented knowledge capabilities.