Does Overconfident CEO Matter? An Empirical Examination of CEO Overconfidence and Digital Transformation

Although previous studies have emphasized the importance of CEO in IT performance, there is little literature exploring how CEO overconfidence affects digital transformation. We propose a research model that suggests that CEO overconfidence can positively impact digital transformation. In addition, we identified three moderating factors that can enhance the positive relationship between CEO overconfidence and digital transformation: the presence of Chief Information Officer (CIO), the board of directors with IT expertise, and industry competitiveness. By using the panel data of Chinese listed companies from 2011–2021 to test our model, the results will support our research hypothesis. This article expands the relevant research on CEO overconfidence and further reveals how the psychological factors of CEOs affect IT-related activities in enterprises by discovering the positive relationship between CEO overconfidence and digital transformation, as well as the moderating mechanisms that influence CEO overconfidence. Our analysis results also provide theoretical guidance and practical inspiration for CEOs and businesses on how to successfully achieve digital transformation.