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Paper Number

1191

Paper Type

Complete

Description

To drive digital transformation, firms are increasingly adding IT-experienced executives to their top management team (TMT). Yet, whether IT-experienced executives can aid firms to achieve digital transformation remains unresolved theoretically and empirically. Drawing on human capital and group literature, we propose that there are limits to the benefits received from adding IT-experienced executives to a TMT, resulting in a curvilinear relationship between the share of IT-experienced executives in the TMT and a firm’s digital orientation. We also propose that this relationship is moderated by CEO entrepreneurial orientation and power concentration in the TMT. We test and find support for most of our hypotheses using a secondary panel data set comprising 1,855 firm-year observations from 256 firms listed in the S&P 500 between 2005 and 2017.

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14-DigitalInnovation

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Dec 12th, 12:00 AM

“Digital In, Digital Out?“ – Evidence for a Curvilinear Relationship Between IT Experience in Top Management Teams and Firms’ Digital Orientation

To drive digital transformation, firms are increasingly adding IT-experienced executives to their top management team (TMT). Yet, whether IT-experienced executives can aid firms to achieve digital transformation remains unresolved theoretically and empirically. Drawing on human capital and group literature, we propose that there are limits to the benefits received from adding IT-experienced executives to a TMT, resulting in a curvilinear relationship between the share of IT-experienced executives in the TMT and a firm’s digital orientation. We also propose that this relationship is moderated by CEO entrepreneurial orientation and power concentration in the TMT. We test and find support for most of our hypotheses using a secondary panel data set comprising 1,855 firm-year observations from 256 firms listed in the S&P 500 between 2005 and 2017.

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