Corporate collaborative culture and ESG performance: evidence from China

While the impact of formal institutions on ESG performance has been widely studied, the role of informal institutions, particularly corporate culture, in shaping ESG outcomes remains underexplored. This study focuses on collaborative culture, a crucial dimension of corporate culture, and examines its impact on ESG performance. Drawing on stakeholder theory, this paper proposes a dual-pathway framework arguing that collaborative culture enhances ESG performance via both an internal pathway (strengthening internal control quality) and an external pathway (promoting open innovation). Using a sample of Chinese A-share listed companies from 2009 to 2024, this study empirically tests and robustly confirms these proposed relationships. Further heterogeneity analysis reveals that the positive impact of collaborative culture on ESG performance is significantly stronger for small-scale enterprises, non-state-owned enterprises, and firms with better external governance. Our results contribute to the literature by highlighting the critical role of collaborative culture in enhancing ESG outcomes and providing a deeper understanding of the underlying mechanisms. Additionally, our findings offer important implications for both firms and regulators regarding ESG promotion and sustainable development.