Modeling governance innovation under esg pressure: A DEMATEL–ANP approach to institutional complexity

This study introduces a novel, systems-based framework for assessing ESG governance innovation within controversial financial institutions. The research utilizes the Decision-Making Trial and Evaluation Laboratory (DEMATEL) to identify causal relationships and the Analytic Network Process (ANP) to d...

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Main Authors: Konstantina Ragazou, George Sklavos, Georgia Zournatzidou, Nikolaos Sariannidis
Format: Article
Language:English
Published: Elsevier 2025-09-01
Series:Journal of Open Innovation: Technology, Market and Complexity
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Online Access:http://www.sciencedirect.com/science/article/pii/S2199853125001520
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author Konstantina Ragazou
George Sklavos
Georgia Zournatzidou
Nikolaos Sariannidis
author_facet Konstantina Ragazou
George Sklavos
Georgia Zournatzidou
Nikolaos Sariannidis
author_sort Konstantina Ragazou
collection DOAJ
description This study introduces a novel, systems-based framework for assessing ESG governance innovation within controversial financial institutions. The research utilizes the Decision-Making Trial and Evaluation Laboratory (DEMATEL) to identify causal relationships and the Analytic Network Process (ANP) to deduce system-aware priority weights to model the interdependencies among governance elements. The Innovation Readiness Index (IRI) is a composite metric that evaluates an institution's ability to undergo ESG-oriented transformation by integrating these methods. According to the model, Executive Compensation Transparency, Audit Committee Independence, and Board Independence are the primary structural drivers of governance innovation, as evidenced by data from 385 European financial institutions with governance controversies. Conversely, indicators such as Women in Management and ESG Controversy Score function as outcome variables. The study redefines ESG governance as a dynamic and adaptive system and offers a replicable method for assessing innovation readiness in high-risk financial environments.
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institution Kabale University
issn 2199-8531
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publishDate 2025-09-01
publisher Elsevier
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series Journal of Open Innovation: Technology, Market and Complexity
spelling doaj-art-409faadb8ec342cabdc932332f48d6882025-08-20T05:06:23ZengElsevierJournal of Open Innovation: Technology, Market and Complexity2199-85312025-09-0111310061710.1016/j.joitmc.2025.100617Modeling governance innovation under esg pressure: A DEMATEL–ANP approach to institutional complexityKonstantina Ragazou0George Sklavos1Georgia Zournatzidou2Nikolaos Sariannidis3Department of Management Science and Technology, University of Western Macedonia, Kozani 50100, Greece; Corresponding author.Department of Business Administration, University of Thessaly, Larissa 41500, GreeceDepartment of Business Administration, University of Western Macedonia, Grevena 51100, GreeceDepartment of Accounting and Finance, University of Western Macedonia, Kozani 50100, GreeceThis study introduces a novel, systems-based framework for assessing ESG governance innovation within controversial financial institutions. The research utilizes the Decision-Making Trial and Evaluation Laboratory (DEMATEL) to identify causal relationships and the Analytic Network Process (ANP) to deduce system-aware priority weights to model the interdependencies among governance elements. The Innovation Readiness Index (IRI) is a composite metric that evaluates an institution's ability to undergo ESG-oriented transformation by integrating these methods. According to the model, Executive Compensation Transparency, Audit Committee Independence, and Board Independence are the primary structural drivers of governance innovation, as evidenced by data from 385 European financial institutions with governance controversies. Conversely, indicators such as Women in Management and ESG Controversy Score function as outcome variables. The study redefines ESG governance as a dynamic and adaptive system and offers a replicable method for assessing innovation readiness in high-risk financial environments.http://www.sciencedirect.com/science/article/pii/S2199853125001520ESG governanceDEMATELANPOpen innovationComplexityFinancial institutions
spellingShingle Konstantina Ragazou
George Sklavos
Georgia Zournatzidou
Nikolaos Sariannidis
Modeling governance innovation under esg pressure: A DEMATEL–ANP approach to institutional complexity
Journal of Open Innovation: Technology, Market and Complexity
ESG governance
DEMATEL
ANP
Open innovation
Complexity
Financial institutions
title Modeling governance innovation under esg pressure: A DEMATEL–ANP approach to institutional complexity
title_full Modeling governance innovation under esg pressure: A DEMATEL–ANP approach to institutional complexity
title_fullStr Modeling governance innovation under esg pressure: A DEMATEL–ANP approach to institutional complexity
title_full_unstemmed Modeling governance innovation under esg pressure: A DEMATEL–ANP approach to institutional complexity
title_short Modeling governance innovation under esg pressure: A DEMATEL–ANP approach to institutional complexity
title_sort modeling governance innovation under esg pressure a dematel anp approach to institutional complexity
topic ESG governance
DEMATEL
ANP
Open innovation
Complexity
Financial institutions
url http://www.sciencedirect.com/science/article/pii/S2199853125001520
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AT georgiazournatzidou modelinggovernanceinnovationunderesgpressureadematelanpapproachtoinstitutionalcomplexity
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