Research on the impact of top management team digitalization awareness of a firm's innovation output

This study, using panel-fixed effect and mediating effect models, examines the digitalization awareness of TMTs in Chinese listed companies from 2007 to 2021, analysing its impact on firms’ innovation output, substantive innovation, and strategic innovation. Our findings indicate that TMTs' digitalization awareness significantly boosts innovation output, particularly substantive innovation. But it does not have a significant positive impact on strategic innovation. This impact is achieved through increased research and development (R&D) investment and information transparency. Furthermore, we observe that the positive impact of digitalization awareness on innovation output and substantive innovation is more significant when a firm has a high asset-liability ratio and is state-owned. However, when the proportion of largest shareholder shares is relatively high, the positive impact of digitalization awareness on innovation output and substantive innovation is relatively muted. After several tests, such as endogenity treatment of instrumental variables, model replacement, and firm fixed effects, the research conclusions in this article are still valid. These conclusions offer valuable insights for firms seeking to enhance their innovation output and for further research on TMT digitalization awareness.