<p>Leadership plays an important role in driving digital transformation. This study explores how chief executive officers’ (CEOs’) career horizons affect firms’ digital transformation and the moderating role of the interactions between the CEO and other top management team (TMT) members. We find that CEOs with shorter career horizons (e.g., older CEOs) are more inclined to inhibit firms’ digital transformation than those with longer career horizons (e.g., younger CEOs). By integrating the career horizon problem into a CEO-TMT interface framework, we further explore how the CEO-TMT interface affects the relationship between the CEO’s career horizon and digital transformation. We find that this negative relationship is more prominent when the CEO-TMT power disparity is larger, while it is less prominent when the TMT has more digital expertise. Our study provides an overall understanding of how leadership shapes firms’ digital transformation at the CEO-TMT interface.</p>

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Leadership driving digital transformation: The role of CEO career horizon and CEO-TMT interface

  • Xin Sui,
  • Guocai Chen

摘要

Leadership plays an important role in driving digital transformation. This study explores how chief executive officers’ (CEOs’) career horizons affect firms’ digital transformation and the moderating role of the interactions between the CEO and other top management team (TMT) members. We find that CEOs with shorter career horizons (e.g., older CEOs) are more inclined to inhibit firms’ digital transformation than those with longer career horizons (e.g., younger CEOs). By integrating the career horizon problem into a CEO-TMT interface framework, we further explore how the CEO-TMT interface affects the relationship between the CEO’s career horizon and digital transformation. We find that this negative relationship is more prominent when the CEO-TMT power disparity is larger, while it is less prominent when the TMT has more digital expertise. Our study provides an overall understanding of how leadership shapes firms’ digital transformation at the CEO-TMT interface.