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Research on How Executive Connections Affect Enterprise Digital Transformation: Empirical Evidence from China

Author

Listed:
  • Fuping Bai

    (School of Management, Shandong University of Technology, Zibo 255000, China)

  • Donghui Liu

    (School of Management, Shandong University of Technology, Zibo 255000, China)

  • Kaiyun Dong

    (School of Management, Shandong University of Technology, Zibo 255000, China)

  • Mengting Shang

    (School of Management, Shandong University of Technology, Zibo 255000, China)

  • Aiguo Yan

    (School of Management, Shandong University of Technology, Zibo 255000, China)

Abstract

In the context of the digital economy, the external connection of executives provides enterprises with a good idea to amplify their potential for digital transformation with the help of external forces. Therefore, we conduct a theoretical exploration and an empirical analysis of the relationship between executive connections and enterprise digital transformation. As the research sample, we use the A-share manufacturing companies listed in China from 2012 to 2021. According to sufficient verifications, we discover that executive connections can effectively support digital transformation. From the perspective of each subdivision dimension, executive business connections, executive technical connections, and executive financial connections can significantly promote digital transformation, among which executive technical connections have the greatest favorable impact. However, the impact of executive political connections on digital transformation is not obvious. Additionally, executive connections primarily foster enterprise digital transformation by reducing enterprise asset specificity. The results of the boundary mechanism test demonstrate that the external environmental dynamics and the internal dynamic capabilities reinforce the positive effect of executive connections on digital transformation. These findings contribute to a deeper understanding of the role of executive connections in digital transformation and provide practical guidance for firms to accelerate digital transformation.

Suggested Citation

  • Fuping Bai & Donghui Liu & Kaiyun Dong & Mengting Shang & Aiguo Yan, 2023. "Research on How Executive Connections Affect Enterprise Digital Transformation: Empirical Evidence from China," Sustainability, MDPI, vol. 15(3), pages 1-17, January.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:3:p:2037-:d:1043023
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    Cited by:

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