Competitive Intelligence as a Governance Capability: Linking Employee Ownership and ESG Performance in Chinese Firms

Purpose: This study analyzes how employee ownership influences Environmental, Social, and Governance (ESG) performance in China and examines the role of Competitive Intelligence (CI) as a strategic governance capability aligning ownership incentives with sustainability outcomes. A comparative governance perspective is adopted to explore differences among employee-owned, state-influenced, and traditionally governed firms within the Chinese institutional context. Methodology/approach: The research employs a qualitative, conceptual design grounded in an integrative governance framework. A systematic review of interdisciplinary literature on employee ownership, ESG performance, corporate governance, and competitive intelligence was conducted using major academic databases. Comparative institutional reasoning contextualizes ownership-based governance mechanisms within China’s regulatory, socio-political, and market environment. Originality/Relevance: While prior studies have examined ESG and ownership structures separately, limited attention has been given to CI as a governance capability moderating the relationship between employee ownership and ESG outcomes, particularly in emerging economies. This study conceptualizes CI as a dynamic governance mechanism enhancing information transparency, stakeholder alignment, and sustainability-oriented decision-making. Key findings: The theoretical synthesis indicates that employee ownership strengthens ESG performance when supported by structured CI systems. CI operates as a governance-processing capability that converts ownership incentives into informed sustainability decisions. Variations in governance configurations explain differences in ESG outcomes across ownership types in China. Theoretical/methodological contributions: The study advances literature by integrating employee ownership, ESG, and CI within a comparative governance framework and positions CI as a dynamic governance capability, providing a foundation for future empirical research.