IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v86y2025ipds1544612325017970.html

From digital minds to computing power: executive leadership and infrastructure strategy

Author

Listed:
  • Li, Min
  • Qiu, Mengchen
  • Liu, Qilu

Abstract

The strategic deployment of computing power is crucial for enhancing enterprise digital competitiveness. Using data from Chinese listed firms, this study examines how digital leadership affects computing power deployment decisions. Results indicate that executives with digital backgrounds significantly promote computing investments. Strategic and strategic aggressiveness and managerial innovation consciousness act as partial mediators. Moderating effect analysis reveals that data center qualifications amplify the effect of digital leadership. Threshold analysis indicates that the effect is only significant among small firms, indicating a size-based nonlinear pattern. These findings provide valuable micro-level evidence for digital strategy implementation and technology resource allocation.

Suggested Citation

  • Li, Min & Qiu, Mengchen & Liu, Qilu, 2025. "From digital minds to computing power: executive leadership and infrastructure strategy," Finance Research Letters, Elsevier, vol. 86(PD).
    • Handle: RePEc:eee:finlet:v:86:y:2025:i:pd:s1544612325017970
    DOI: 10.1016/j.frl.2025.108543
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1544612325017970
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2025.108543?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Mary Tripsas & Giovanni Gavetti, 2000. "Capabilities, cognition, and inertia: evidence from digital imaging," Strategic Management Journal, Wiley Blackwell, vol. 21(10‐11), pages 1147-1161, October.
    2. Charles I. Jones & Christopher Tonetti, 2020. "Nonrivalry and the Economics of Data," American Economic Review, American Economic Association, vol. 110(9), pages 2819-2858, September.
    3. Lashitew, Addisu A., 2023. "When businesses go digital: The role of CEO attributes in technology adoption and utilization during the COVID-19 pandemic," Technological Forecasting and Social Change, Elsevier, vol. 189(C).
    4. Zhaocheng Xu & Jingchuan Hou, 2024. "CEO overseas experience, dynamic capabilities and corporate digital transformation: An imprinting theory perspective," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 11(1), pages 1-14, December.
    5. AlNuaimi, Bader K. & Kumar Singh, Sanjay & Ren, Shuang & Budhwar, Pawan & Vorobyev, Dmitriy, 2022. "Mastering digital transformation: The nexus between leadership, agility, and digital strategy," Journal of Business Research, Elsevier, vol. 145(C), pages 636-648.
    6. Tang, Meihuan, 2025. "Data element utilization and firm value," International Review of Financial Analysis, Elsevier, vol. 102(C).
    7. Li, Shuqi & Zhu, Yuxuan & Xu, Nuo, 2025. "Computing resources and trade credit financing: Evidence from China," International Review of Economics & Finance, Elsevier, vol. 97(C).
    8. Juliane Begenau & Maryam Farboodi & Laura Veldkamp, 2018. "Big Data in Finance and the Growth of Large Firms," Working Papers 18-08, New York University, Leonard N. Stern School of Business, Department of Economics.
    9. Juliane Begenau & Maryam Farboodi & Laura Veldkamp, 2018. "Big Data in Finance and the Growth of Large Firms," NBER Working Papers 24550, National Bureau of Economic Research, Inc.
    10. G.T. Lumpkin & Keith H. Brigham & Todd W. Moss, 2010. "Long-term orientation: Implications for the entrepreneurial orientation and performance of family businesses," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 22(3-4), pages 241-264, May.
    11. Verhoef, Peter C. & Broekhuizen, Thijs & Bart, Yakov & Bhattacharya, Abhi & Qi Dong, John & Fabian, Nicolai & Haenlein, Michael, 2021. "Digital transformation: A multidisciplinary reflection and research agenda," Journal of Business Research, Elsevier, vol. 122(C), pages 889-901.
    12. Qian, Kun & Liang, Xinyv & Liu, Xiaofeng, 2023. "Managerial ability, managerial risk taking and innovation performance," Finance Research Letters, Elsevier, vol. 57(C).
    13. Shankar, Raj K. & Shepherd, Dean A., 2019. "Accelerating strategic fit or venture emergence: Different paths adopted by corporate accelerators," Journal of Business Venturing, Elsevier, vol. 34(5), pages 1-1.
    14. Cai, Qihai & Wu, Jiahua & Wu, Ting & Chang, Po-Chien & Mardani, Abbas, 2024. "The impact of digital leadership on hidden champions’ competitive advantage: A moderated mediation model of ambidextrous innovation and value co-creation," Journal of Business Research, Elsevier, vol. 182(C).
    15. Michelle Novotny & Rachel Dodds & Philip R. Walsh, 2024. "Understanding the adoption of data-driven decision-making practices among Canadian DMOs," Information Technology & Tourism, Springer, vol. 26(2), pages 331-345, June.
    16. Gao, Jing & Zhang, Wanfei & Guan, Tao & Feng, Qiuhong & Mardani, Abbas, 2023. "The effect of manufacturing agent heterogeneity on enterprise innovation performance and competitive advantage in the era of digital transformation," Journal of Business Research, Elsevier, vol. 155(PA).
    17. Juliane Begenau & Laura Veldkamp & Maryam Farboodi, 2018. "Big Data in Finance and the Growth of Large Firms," 2018 Meeting Papers 155, Society for Economic Dynamics.
    18. Jing, Ruifeng & Xu, Yanmei & Liu, Ruizhi, 2025. "Data element, big data and enterprise innovation: Evidence from data trading platforms and national big data comprehensive pilot zones," International Review of Financial Analysis, Elsevier, vol. 105(C).
    19. J. P. Eggers & Sarah Kaplan, 2009. "Cognition and Renewal: Comparing CEO and Organizational Effects on Incumbent Adaptation to Technical Change," Organization Science, INFORMS, vol. 20(2), pages 461-477, April.
    20. William D. Nordhaus, 2021. "Are We Approaching an Economic Singularity? Information Technology and the Future of Economic Growth," American Economic Journal: Macroeconomics, American Economic Association, vol. 13(1), pages 299-332, January.
    21. Muhammad Imran & Rawiyah Abdul Hamid & Adnan ul Haque, 2025. "Driving SME Growth Through Digital Leadership: Exploring Tenure and Transformation Dynamics," Administrative Sciences, MDPI, vol. 15(3), pages 1-17, March.
    22. Xuemei Xie & Yuhang Han & Hao Tan, 2024. "Greening China’s digital economy: exploring the contribution of the East–West Computing Resources Transmission Project to CO2 reduction," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 11(1), pages 1-15, December.
    23. Wu, Shan & Zou, Mengqi & Jin, Tongen, 2025. "Data element marketization and corporate investment efficiency: Evidence from China," International Review of Financial Analysis, Elsevier, vol. 104(PA).
    24. Begenau, Juliane & Farboodi, Maryam & Veldkamp, Laura, 2018. "Big data in finance and the growth of large firms," Journal of Monetary Economics, Elsevier, vol. 97(C), pages 71-87.
    25. Tugba Karaboga & Cemal Zehir & Ekrem Tatoglu & H. Aykut Karaboga & Abderaouf Bouguerra, 2023. "Big data analytics management capability and firm performance: the mediating role of data-driven culture," Review of Managerial Science, Springer, vol. 17(8), pages 2655-2684, November.
    26. Constance E. Helfat & Margaret A. Peteraf, 2015. "Managerial cognitive capabilities and the microfoundations of dynamic capabilities," Strategic Management Journal, Wiley Blackwell, vol. 36(6), pages 831-850, June.
    27. Pei-Fang Hsu, 2022. "A Deeper Look at Cloud Adoption Trajectory and Dilemma," Information Systems Frontiers, Springer, vol. 24(1), pages 177-194, February.
    28. Yi Liu & Justin Zuopeng Zhang & Sajjad Jasimuddin & M. Zied Babai, 2024. "Exploring servitization and digital transformation of manufacturing enterprises: evidence from an industrial internet platform in China," International Journal of Production Research, Taylor & Francis Journals, vol. 62(8), pages 2812-2831, April.
    29. Mao, Connie X. & Zhang, Chi, 2018. "Managerial Risk-Taking Incentive and Firm Innovation: Evidence from FAS 123R," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 53(2), pages 867-898, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ufuk Akcigit & Sina T. Ates, 2021. "Ten Facts on Declining Business Dynamism and Lessons from Endogenous Growth Theory," American Economic Journal: Macroeconomics, American Economic Association, vol. 13(1), pages 257-298, January.
    2. Wu, Shan & Zou, Mengqi & Jin, Tongen, 2025. "Data element marketization and corporate investment efficiency: Evidence from China," International Review of Financial Analysis, Elsevier, vol. 104(PA).
    3. Zheng, Liyuan & Zhang, Sheng & Gao, Di & Liu, Jingwei, 2025. "How does digital investment drive real-sector engagement? Theoretical and empirical evidence," International Review of Financial Analysis, Elsevier, vol. 108(PB).
    4. Zhou, Zhongsheng & Li, Zhuo, 2023. "Corporate digital transformation and trade credit financing," Journal of Business Research, Elsevier, vol. 160(C).
    5. Chen, Xian & Liu, Yang & Wen, Fenghua, 2024. "Air pollution and the digital transformation," International Review of Economics & Finance, Elsevier, vol. 96(PC).
    6. Ehsan Valavi & Joel Hestness & Newsha Ardalani & Marco Iansiti, 2022. "Time and the Value of Data," Papers 2203.09118, arXiv.org.
    7. Youngjin Yoo & Ola Henfridsson & Jannis Kallinikos & Robert Gregory & Gordon Burtch & Sutirtha Chatterjee & Suprateek Sarker, 2024. "The Next Frontiers of Digital Innovation Research," Information Systems Research, INFORMS, vol. 35(4), pages 1507-1523, December.
    8. Walther, Ansgar & Uettwiller, Antoine, 2019. "The Market for Data Privacy," CEPR Discussion Papers 13588, Centre for Economic Policy Research.
    9. Luo, Sumei & Sun, Yongkun & Zhou, Rui, 2022. "Can fintech innovation promote household consumption? Evidence from China family panel studies," International Review of Financial Analysis, Elsevier, vol. 82(C).
    10. Wu, Qingyang & Li, Shanhong, 2024. "Decarbonization by digits: How data factors drive nonlinear sustainable dynamics in manufacturing," Applied Energy, Elsevier, vol. 374(C).
    11. Ge, Shilong & Tu, Zhenyu & Chen, Yalin & Chong, Heap-Yih, 2025. "Data driven-sustainability: The impact of data trading platforms on corporate ESG performance," International Review of Financial Analysis, Elsevier, vol. 105(C).
    12. Jansen, Mark & Nagel, Fabian & Yannelis, Constantine & Zhang, Anthony Lee, 2025. "Data and welfare in credit markets," Journal of Financial Economics, Elsevier, vol. 174(C).
    13. Jennie Bai & Massimo Massa, 2021. "Is Human-Interaction-based Information Substitutable? Evidence from Lockdown," NBER Working Papers 29513, National Bureau of Economic Research, Inc.
    14. Shiyang Huang & Yan Xiong & Liyan Yang, 2022. "Skill Acquisition and Data Sales," Management Science, INFORMS, vol. 68(8), pages 6116-6144, August.
    15. Breuer, Matthias & Leuz, Christian & Vanhaverbeke, Steven, 2025. "Reporting regulation and corporate innovation," Journal of Accounting and Economics, Elsevier, vol. 80(1).
    16. Xu, Heng & Pan, Shiyuan, 2025. "Policy combinations, high-quality population development, and China's economic growth: An endogenous fertility model," Economic Modelling, Elsevier, vol. 151(C).
    17. Surabhi R & Shiva Kumar, 2024. "Evolution of FinTech: A Systematic Literature Review," Nowoczesne Systemy Zarządzania. Modern Management Systems, Military University of Technology, Faculty of Security, Logistics and Management, Institute of Organization and Management, issue 2, pages 49-62.
    18. Zhou, Qin & Cheng, Changgao & Fang, Zhou & Zhang, Hengquan & Xu, Yining, 2024. "How does the development of the digital economy affect innovation output? Exploring mechanisms from the perspective of regional innovation systems," Structural Change and Economic Dynamics, Elsevier, vol. 70(C), pages 1-17.
    19. Xu, Yuanbin & Wei, Yuan & Zeng, Xin & Yu, Haiqing & Chen, Hongjie, 2024. "Big data development and labor income share: Evidence from China's national big data comprehensive pilot zones," Economic Analysis and Policy, Elsevier, vol. 84(C), pages 1415-1437.
    20. Li, Bin & Sun, Jiawei & Xu, Lei & Guo, Fei, 2026. "Fintech engagement by non-financial firms and the speed of capital structure adjustment," Pacific-Basin Finance Journal, Elsevier, vol. 95(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finlet:v:86:y:2025:i:pd:s1544612325017970. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/frl .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.