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Paper Type

Complete

Paper Number

1593

Description

Digital technology has advanced rapidly in the last few years. Consequently, companies need to transform their business and operations models to keep up with these advances, placing digital transformation (DT) as a top priority. Beyond the possible effects of using more digital technologies, is more innovation. One way in which companies can stimulate DT is by creating a new top-management position, the Chief Digital Officer (CDO). Although evidence has been found about the relationship between digital technologies and innovation, the role of the CDO as an enabler has been less studied. We use difference-in-difference estimators to measure this effect, using a unique dataset with 39 companies that appointed a CDO and 39 comparable companies that did not as a control group. We find a significant increase in patent filings as early as the first year CDO’s appointment. We find evidence that a managerial role can have an effect on innovation.

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Aug 10th, 12:00 AM

Does a CDO enhance Company Inventiveness? An Empirical Study on new Managerial Positions and Innovation

Digital technology has advanced rapidly in the last few years. Consequently, companies need to transform their business and operations models to keep up with these advances, placing digital transformation (DT) as a top priority. Beyond the possible effects of using more digital technologies, is more innovation. One way in which companies can stimulate DT is by creating a new top-management position, the Chief Digital Officer (CDO). Although evidence has been found about the relationship between digital technologies and innovation, the role of the CDO as an enabler has been less studied. We use difference-in-difference estimators to measure this effect, using a unique dataset with 39 companies that appointed a CDO and 39 comparable companies that did not as a control group. We find a significant increase in patent filings as early as the first year CDO’s appointment. We find evidence that a managerial role can have an effect on innovation.

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