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Exploring the synergistic effect of CEO power and technological expertise in driving corporate digital transformation

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  • He, Bingquan
  • Gan, Lu

Abstract

Drawing upon a dataset encompassing non-financial listed firms in China spanning the years 2011 to 2022, this research delves into the influence exerted by CEO authority and technical background on the process of corporate digital transformation. Our findings suggest that an elevation in CEO power positively contributes to the advancement of corporate digital transformation. Furthermore, a discernible positive association exists between a CEO's technical background and the extent of corporate digital transformation. The analysis also uncovers that firm size acts as a moderator in the relationship linking CEO power to corporate digital transformation. Through mechanism exploration, we reveal that Research and Development (R&D) investment serves as a crucial mediator in this relationship. Additionally, an examination of heterogeneity highlights notable disparities in the impact of CEO power on digital transformation when comparing high-tech versus non-high-tech sectors. This study presents empirical insights elucidating the pivotal role of CEOs in driving corporate digital transformation and carries substantial implications for refining corporate governance frameworks and accelerating digital transformation efforts.

Suggested Citation

  • He, Bingquan & Gan, Lu, 2025. "Exploring the synergistic effect of CEO power and technological expertise in driving corporate digital transformation," International Review of Financial Analysis, Elsevier, vol. 98(C).
    • Handle: RePEc:eee:finana:v:98:y:2025:i:c:s1057521925000055
    DOI: 10.1016/j.irfa.2025.103918
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