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Paper Number
2107
Paper Type
short
Description
The swift advancement of digital technologies demands CEOs to prioritize digital innovation strategies to stay competitive. However, an overemphasis on digitality, neglecting aspects like customer focus, operations, and collaboration, can hinder innovation. Using a neural network, we evaluated CEOs’ digital strategies by training on 1,000 company pitches and applying this to S&P 500 CEOs' Shareholder Letters (2001-2018). We discovered an inverted U relationship between digital strategy intensity and innovation performance. This stresses the need for a balanced strategy with the right digital focus. Our research illuminates top executives' digital mindset in driving innovation, emphasizing the potential pitfalls of a purely digital approach. Furthermore, our machine-learning method offers a novel, scalable way to quantify digital strategy, paving the way for subsequent research.
Recommended Citation
Schaeper, Thomas; Maibaum, Frederik; Schulz, Colin; and Foege, Johann Nils, "Decoding the Mindset: A Neural Network Approach for Analyzing CEO’s Digital Strategy and Its Innovation Implications" (2023). ICIS 2023 Proceedings. 10.
https://aisel.aisnet.org/icis2023/diginnoventren/diginnoventren/10
Decoding the Mindset: A Neural Network Approach for Analyzing CEO’s Digital Strategy and Its Innovation Implications
The swift advancement of digital technologies demands CEOs to prioritize digital innovation strategies to stay competitive. However, an overemphasis on digitality, neglecting aspects like customer focus, operations, and collaboration, can hinder innovation. Using a neural network, we evaluated CEOs’ digital strategies by training on 1,000 company pitches and applying this to S&P 500 CEOs' Shareholder Letters (2001-2018). We discovered an inverted U relationship between digital strategy intensity and innovation performance. This stresses the need for a balanced strategy with the right digital focus. Our research illuminates top executives' digital mindset in driving innovation, emphasizing the potential pitfalls of a purely digital approach. Furthermore, our machine-learning method offers a novel, scalable way to quantify digital strategy, paving the way for subsequent research.
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Comments
14-DigitalInnovation