ABSTRACT Firms today face mounting pressure to pursue both digital transformation and green development, placing corporate boards at the center of reconciling these dual agendas. This study draws on cognitive dissonance theory and strategic consistency theory to examine how green–digital strategic dissonance within boards influences strategic drift and, in turn, long‐term firm value. Using panel data on Chinese A‐share listed firms from 2016 to 2022, we find that green–digital dissonance significantly increases strategic drift, while the relationship between strategic drift and firm value follows an inverted U ‐shape. Further analysis shows that board integration capability alleviates the effect of dissonance on drift, whereas environmental dynamism amplifies the nonlinear impact of drift on value. We also find that non‐state‐owned firms, smaller firms, and high‐tech firms are more exposed to the negative consequences of dissonance. Among the various forms of dissonance, resource‐related dissonance has the strongest effect on strategic drift. These findings provide new evidence on how multi‐goal tensions in the boardroom shape strategic choices and value creation.
Xie et al. (Thu,) studied this question.