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Master One’s Craft: CEOs with IT Backgrounds and Firm Digital Innovation

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  • Yichi Jiang

    (Chongqing Technology and Business University)

  • Lingxue Yi

    (Sun Yat-Sen University)

  • Shujie Yao

    (Chongqing University and Li Anmin Institute of Economic Research, Liaoning University)

Abstract

Digital innovation is a critical factor in the successful digital transformation of firms, not only enhancing firm competitiveness but also contributing to sustainable social and economic development. The topic of driving digital innovation within firms has garnered significant attention in academic research. However, existing studies have overlooked the influence of a CEO’s specific background on the strategic decision-making process for digital innovation within firms. Through a manual examination of the resumes of CEOs of Chinese listed firms from 2007 to 2022, we investigated the relationship between the CEOs with information technology (IT) backgrounds and firm digital innovation. Our study presents compelling evidence suggesting that CEOs with IT backgrounds can significantly enhance a firm’s digital innovation output, a conclusion upheld after various robustness checks. Heterogeneity tests indicate that the promotion of digital innovation by CEOs with IT backgrounds is more pronounced in state-owned firms, firms facing a competitive disadvantage, and regions with lower levels of marketization. Our channel of influence analysis reveals that CEOs with IT backgrounds increase a firm’s digital attention and elevate human capital levels by cultivating more digital talent, thereby promoting digital innovation. Furthermore, CEOs with IT backgrounds can create shareholder wealth by driving firm digital innovation. Our paper not only makes an important supplement to research on corporate executives and digital innovation, but it also offers crucial practical insights for firms regarding recruiting appropriate talent to drive digital transformation.

Suggested Citation

  • Yichi Jiang & Lingxue Yi & Shujie Yao, 2025. "Master One’s Craft: CEOs with IT Backgrounds and Firm Digital Innovation," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(4), pages 13894-13923, October.
    • Handle: RePEc:spr:jknowl:v:16:y:2025:i:4:d:10.1007_s13132-024-02487-7
    DOI: 10.1007/s13132-024-02487-7
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