Charting the Pathways to Cleaner and Responsible Consumption: The Contributions of Environmental Governance, Responsible Innovation, and Circularity Transition

This study assesses the conditional influence of Environmental Governance (EG), Responsible Innovation (RI), and Circular Economy Committees (CEC) on the nexus between Indigenous Directors (IDs) and Cleaner and Responsible Consumption (CRC) among manufacturing firms in the Belt and Road Initiative–Middle East and North Africa (BRI–MENA) region. Drawing on Institutional Theory and the Resource‐Based View (RBV), the study conceptualizes indigenous leadership as a source of cultural legitimacy and strategic capability that drives firms toward sustainability‐oriented behaviors. Using a balanced panel dataset of 597 manufacturing firms spanning 2014–2024, the study employs Method of Moments Quantile Regression (MMQR) to assess heterogeneous effects across CRC distribution levels and Cross‐Sectional Autoregressive Distributed Lag (CS‐ARDL) estimation to capture long‐ and short‐run dynamics. The MMQR results reveal that indigenous directors positively and significantly enhance CRC across all quantiles, with stronger effects among high‐performing firms. Furthermore, EG, RI, and CEC each amplify this relationship, suggesting that robust governance structures, ethical innovation, and circular mechanisms serve as enabling conditions for sustainability leadership. The CS‐ARDL results confirm the persistence of these effects over time, indicating both short‐term adaptability and long‐term equilibrium convergence toward cleaner consumption outcomes. The findings extend sustainability governance literature by integrating cultural and institutional dimensions into firm‐level analysis, highlighting the strategic value of indigenous leadership within corporate boards. Practically, the study underscores the need for BRI–MENA policymakers and firms to institutionalize indigenous participation, strengthen environmental governance, and foster responsible innovation to accelerate progress toward SDG 12 on Responsible Consumption and Production.